Advanced Gold Exploration in Eastern Europe
Velocity Minerals Ltd. (TSXV:VLC) is a Vancouver-based resource exploration company focused on acquiring, exploring and developing properties in Eastern Europe. The company’s current portfolio consists of two advanced-stage gold projects, Rozino and Ekuzya, in southeastern Bulgaria.
Eastern Europe presents significant opportunities for junior mining companies and within this region Bulgaria stands out for its mining friendly incentives. The EU country features low corporate taxes of 10 percent and low royalty rates averaging 1 to 2.5 percent—comparing favorably with better known jurisdictions such as Canada or Chile.
Velocity Minerals primary advantage in this emerging mining district is its strategic partnership with Bulgarian miner Gorubso-Kardzhali A.D. which operates the Chala Gold Mine and the Kardzhali CIL processing plant. Kardzhali is the country’s only permitted cyanide processing plant — a critical advantage, according to Velocity President and CEO Keith Henderson, because “these types of gold projects need cyanide in order to work well and maximize recovery.”
The Rozino Project hosts a low sulphidation epithermal gold deposit within 20 kilometers of the Dundee Metals’ Ada Tepe gold mine development project. Past exploration at Rozina included 142 historical drill holes with mineralization remaining open for expansion. Through an agreement with Gorubso, Velocity Minerals has the option to earn a 70 percent interest in the property with the completion of a NI 43-101 Preliminary Economic Assessment.
With this goal in mind, the company has planned an ongoing 12,000-meter drill campaign of which 7,000 meters will be completed before Christmas. Velocity commenced drilling in August 2017. Early results reported August 21 include an intersect of 74 meters at 2.35 g/t gold including 39 meters at 4.11 g/t gold. Further results are expected to generate steady news flow into 2018.
Velocity Minerals’ second project, Ekuzya, is home to multiple precious metals targets and contiguous with Gorubso’s operating Chala Mine. Velocity has the option to earn a 50 percent interest in the property through $1 million in exploration spending over two years with the further option to convert to a 5 percent gross royalty. The option agreement also includes a 12-month exclusivity period for Velocity to negotiate an interest in the Chala Gold Mine following due diligence. Velocity is in the process of complete geological surveys at Ekuyza with a planned drill program to follow in 2018.
Velocity’s management and board have a combined 100 years’ experience across exploration, resource definition, feasibility, finance, mine construction and operation. Members of the team have worked in senior positions for major companies, including Anglo American and Lundin, and have successful track records in managing publicly listed companies and bringing value to shareholders. Henderson, a former senior manager at Anglo American, played a vital role in the sale of an iron deposit in Peru for $100 million cash while VP of Exploration at Cardero Resource Corp.
- Two quality advanced-stage gold projects with excellent blue sky potential in Eastern Europe.
- Clean gold metallurgy at Rozino with good historical recovery (97%+).
- 12,000-meter drill campaign underway for 2017-2018 at Rozino.
- Drill program planned for 2018 at Ekuzya.
- Exclusivity period to conduct due diligence on the Chala Gold Mine.
- Tight share structure with 59 percent of stocks subject to a TSX-V lock-up provision as of August 2017.
- Strategic advantage through partnership with Bulgarian mining company Gorubso-Kardzhali A.D.—first and only cyanide permit in Bulgaria.
- Highly talented team of mining industry professionals; Anglo American, Lundin alumni; Trevali President and CEO Mark Cruise on Board.