Obichnik Project

Velocity has an option agreement with Bulgarian partner, Gorubso Kardzhali A.D., to earn a 70% interest in the Momchil property, which includes the Obichnik gold project with a geological resource registered on the Bulgarian State balance. Velocity can earn the interest by delivering a mineral resource estimate prepared under National Instrument 43-101. The Obichnik deposit is located in southeast Bulgaria, approximately 25 km by road from Gorubso's modern CIL processing plant.

The deposit is open for expansion and requires systematic exploration to investigate its full potential and to deliver a mineral resource estimate prepared under NI 43-101. Concurrent with and building upon the Company's Rozino prefeasibility, a program of modern integrated exploration is planned at Obichnik in order to assess mineralization potentially amenable to open pit mining.

Historical Resources

The resource which is registered with the Ministry of Energy in Bulgaria is based on historical exploration, including approximately 32 drill holes (4,800m) and 137 trenches completed by Geoengineering Ltd. and Gorubso.

Historical Resources for Obichnik1, calculated by Gorubso using the Bulgarian classification system. Please review cautionary language below with respect to Historical Resources.

Cut-off Grade
(g/t gold)

Tonnes
(Mt)

Gold Grade
(g/t gold)

Contained
Gold
(ounces gold)

Bulgarian
Resource
Category

0.5

552,559

1.88

36,712

C1 + C2

0.5

1,693,553

1.17

69,925

C3

Note 1. Historical resources at Obichnik were calculated by Gorubso using the Bulgarian classification scheme, based on manual polygonal methods of resource classification. Resources were submitted to and accepted by the Bulgarian government Dragiev H, 2010 "Momchilgrad Prospecting License, Geological Report at the Momchil deposit, Obichnik, Rudarka and Plovka sites, with Resource and Reserve Recalculations of 'Au-Ag Ores' as of 01.10.2009" and geological resources are registered with Certificated#4 from 28.01.2010 issued by the Ministry of Environment and Waters. Additional work will be required in order to verify historical resources and any potential additional resources and to complete a mineral resource estimate consistent with NI-43-101 standards of disclosure.

The Company cautions that it is not treating the historical resources as current mineral resources and/or mineral reserves. Historical resources are not consistent with the standards of disclosure defined by NI 43-101 and may not necessarily be consistent with CIM best practice with respect to reporting mineral resources and reserves. The historical resources are included because they are considered relevant by the Company as they confirm the presence of significant gold mineralization on the property which has not been fully delineated. The inclusion of historical resource estimations provides information as to the potential size and nature of the immediate exploration targets within the Obichnik Property.

Planned Work

The initial work program will focus on surface soil geochemistry and a ground magnetic survey, both of which have been completed by the Company with results pending. A total of 525 soil samples and 29 line kilometers of magnetic data have been collected.

In tandem with the geochemistry and geophysics, the Company plans to assess the reliability of historical drill results with angled heel-to-toe drilling across mineralized zones as well as isolated exploration drill tests (approximately 10 drill holes for an expected total of 1500m). The aim of the drill campaign is to verify mineralization as well as increase understanding of geometry, continuity of mineralization, and geotechnical and hydrogeological aspects of the deposit.

Discovery History at Obichnik

The State company completed initial geological mapping and soil geochemistry between 1970 and 1971. Subsequently, Geoengineering Ltd. (1977 – 1994) completed the bulk of the historical work, including geological mapping, soil geochemistry, 133 trenches (13.3 km), and 24 diamond drill holes for 3,791m. Most recently, between 2003 and 2010, Gorubso completed geological mapping, 3 trenches (294 m), 8 diamond drill holes for 1,017m, and a Historical Resource estimation which was registered with the Bulgarian State.

Selection of rocks outcropping at Obichnik.  A. Ledge of sub-vertical surface oxidized quartz-sericite-pyrite (QSP) alteration. B. QSP structurally controlled replacement body with oxidized, steep, sheeted, quartz-pyrite veinlets. C. QSP altered volcanic fragmental. D. Siliceous hydrothermal breccia developed within volcanic fragmental.

Subscribe to our Email List