Vancouver, British Columbia – Velocity Minerals Ltd. (TSX.V: VLC) (“Velocity” or the “Company”) provides a corporate and exploration update and extends its advisory engagement with Leede Jones Gable Inc. (the “Advisor”) who will continue to work with Velocity’s management and Board to evaluate a range of strategic alternatives that may be available to the Company to maximize value for all shareholders.  

Strategy and Potential Asset Sale

The Company is considering various strategic alternatives including but not limited to the sale of the Rozino gold deposit (“Rozino”).  Rozino is a prefeasibility-stage (“PFS”) gold deposit, which is currently advancing through the permitting process.  The PFS was completed assuming a long-term gold price of US$1,500 per ounce and the Rozino gold deposit is highly sensitive to gold pricing, as illustrated by Figure 1 below, which considers sensitivity of the 2021 PFS discounted cash flow model at gold prices 25% above and below the $1,500 base price.

Figure 1: Rozino Gold Price Sensitivity Analysis (source: Revised NI 43-101 Technical Report “Prefeasibility Study for the Rozino Gold Project, Bulgaria. Report Date December 15, 2021)

Velocity owns 70% of Rozino in joint venture with a partner holding a 30% stake.  Velocity and its partner have signed an agreement that allows the Rozino asset to be offered for sale on a 100% basis, subject to certain qualifications. 

There can be no assurance that ongoing assessment of strategic alternatives will result in any specific strategic plan or financial transaction and no timetable has been set for its completion. The Company does not plan to provide updates unless there are material developments to report.

Iglika Project Update

Pursuant to a letter agreement dated June 8, 2023 (the “Option Agreement”), Velocity has received notice from Dundee Precious Metals (“DPM”) that DPM intends to terminate the Iglika property (“Iglika”) Option Agreement effective July 30, 2024.  During the term of the Option Agreement to date, DPM has spent approximately $3.5 million on surface exploration, drilling and associated costs, completing a total of 10,428m of diamond drilling, with drillholes averaging 613m in depth. 

Following completion of DPM’s drill program, the best drill intersection is 71m at 0.15% copper, including 4.7m at 0.26% copper, 6.0m at 0.37% copper, and 24.5m at 0.21% copper (see previous news release January 23, 2024).  Recently, drilling at the project intersected 24.5m at 0.21% copper, 7.0m at 0.23% copper, and 3.3m at 1.61 g/t gold (see Tables 1 and 2 for complete drill highlights).  Best results are from the Chai Dere propylitic alteration zone (“Chai Dere”), where mineralization has been intersected in a total of 3 drill holes, along approximately 750m of strike length (Figures 2 and 3).  Drill spacing leaves ample space for discovery of additional copper mineralized zones. 

A total of 15 follow-up drill holes have been planned and are currently being permitted.  The Iglika prospecting license is currently awaiting approval of an application for a two-year extension and once drill permitting is also completed, drilling of targets can begin.  The Company is seeking to secure a new drill partner to complete target testing at Chai Dere and throughout the Iglika property.

Figure 2: Map showing selected drill holes at the Chai Dere target, located north of Iglika Copper Skarn deposit.

Figure 3: Selection of core photographs showing alteration and mineralization at Chai Dere.  Photos A-D from drill hole IDD-006:  A) at 466.8m; disseminated and veinlet of chalcopyrite-pyrite (cpy-pyy) in chlorite-sericite±epidote altered crowded feldspar porphyry. B) at 476.9m; intrusive breccia. C) at 546.5m; cpy-pyy veinlets in chlorite-sericite-epidote altered crowded feldspar porphyry dyke. D) at 660.9m; chlorite-sericite altered andesite with anhydrite and quartz-pyy-cpy veinlets.  Photos E-H from drill hole IDD-014:  E) at 68.8m; cpy-pyy veinlets in sericite-pyrite altered coarse volcaniclastics. F) at 112.9m; cpy-pyy vein in sericite-chlorite altered tuff. G) at 226.4m, cpy-pyy veinlets in quartz-sericite-pyrite+/-chlorite altered crowded feldspar porphyry dyke. H) at 915.0m; quartz-chalcopyrite vein cutting chlorite altered andesite dyke.

Table 1: Significant drill intercepts from Chai Dere, Iglika Propylitic Zone, Boyalashka River and Sitovo North targets, with main intercepts calculated using a 0.05 % copper trigger, a minimum 0.1 % copper composite grade, and a maximum of 6 metres consecutive waste.  Including intercepts calculated using higher parameters to minimize number of intervals generated (0.1% copper trigger, a minimum 0.2% copper composite grade, and a maximum 3m of consecutive waste).

Table 2: Significant drill intercepts from Boyalashka River, Monzodiorite and 4G targets, calculated using a 0.2 g/t gold trigger, a minimum 0.5 g/t gold composite grade, and a maximum of 3 metres consecutive waste. 

About Iglika

The 81km2 property has potential for multiple mineral deposit types including copper porphyry, copper skarn, and epithermal gold.  Surface exploration completed at the Property to date includes approximately 717 rock samples, 2,750 soil samples, 2,300 multi-horizon soil samples, 600-line km of magnetic data, 110-line km of induced polarization, 15,000 radiometric measurements, and a total of 11,943m of diamond drilling completed by Velocity and DPM. 

Quality Assurance / Quality Control

The work programs in Bulgaria are designed and supervised by Daniel Marinov, MAIG RPGeo, the Company’s Vice President Operations who is responsible for all aspects of the work, including the quality control/quality assurance program.  On-site personnel at the project rigorously collect and track samples which are then security sealed and shipped to SGS Mineral Services laboratory in Burgas, Bulgaria and Bor, Serbia (drill core), for sample preparation and subsequent analysis.  Drill core samples are prepared and analyzed by fire assay using a 30-gram charge and multi-element analysis with four acid digestion using an Inductively Coupled Mass Spectrometer in compliance with industry standards at SGS Mineral Services laboratory.  Field duplicate samples, blanks and independent controlled reference material (standards) are added to every batch.  

Qualified Person

The technical content of this release has been approved for disclosure by Daniel Marinov, RPGeo, a Qualified Person as defined by NI 43-101 and the Company’s Vice President Operations.  Mr. Marinov is not independent of the Company as he is a director, officer, shareholder, and holds incentive stock options.

On Behalf of the Board of Directors
“Keith Henderson”
President & CEO

For further information, please contact:

Keith Henderson
Phone: +1-604-484-1233
E-mail: info@velocityminerals.com
Web: www.velocityminerals.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS:  This news release includes certain forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995.  All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the amount of the Financing (and any potential upsizing thereof), the intended use of the proceeds from the Financing, the payment of finder's fees, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements.  Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct.  Often, but not always, forward looking statements can be identified by words such as “will”, “plans”, “expects”, “may”, “should”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, “potential” or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved.  In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, that market fundamentals will result in sustained gold demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the future development of the Company’s Bulgarian gold projects in a timely manner, the availability of financing on suitable terms for the development, construction and continued operation of the Company’s Bulgarian gold projects, and the Company’s ability to comply with environmental, health and safety laws.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information.  Such risks and other factors include, among others, operating and technical difficulties in connection with mineral exploration and development and mine development activities for the Company’s Bulgarian copper and gold projects, estimation or realization of mineral reserves and mineral resources, the timing and amount of estimated future production, costs of production, capital expenditures, the costs and timing of the development of new deposits, the availability of a sufficient supply of water and other materials, requirements for additional capital to fund the Company’s business plan, future prices of precious metals, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, possible variations in ore grade or recovery rates, possible failures of plants, equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, the inability to or delay in obtaining governmental and regulatory approvals (including of the TSXV for the Financing), permits or financing or in the completion of development or construction activities, changes in laws, regulations and policies affecting mining operations, hedging practices, currency fluctuations, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation, environmental issues and liabilities, risks related to joint venture operations, and risks related to the integration of acquisitions, as well as those factors discussed under the heading.  “Risk Factors” in the Company’s annual management’s discussion and analysis and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company’s profile on the SEDAR+ website at www.sedarplus.ca.

Readers are cautioned not to place undue reliance on forward looking information.  The Company undertakes no obligation to update any of the forward-looking information in this news release or incorporated by reference herein, except as otherwise required by law.