Rozino Project

Option for 70% Interest In Rozino Project

Velocity has an option to earn a 70% interest in the Rozino gold project through delivery of a NI 43-101 Preliminary Economic Assessment (PEA). Velocity commenced drilling at Rozino in August 2017 and completed 7,500 metres of drilling prior to publishing a maiden inferred mineral resource estimate of 17 million tonnes grading 1.15g/t gold for 629,000 ounces of gold (0.5g/t cut-off grade)(1) in March 2018. The Company plans to publish a PEA, with updated resources and metallurgical test work, in Q3 2018.

Mineral Resource Estimate

Inferred Mineral Resource Estimate(1) (March 2018)

Cut Off Grade
(gold g/t)

Tonnes
(million)

Gold
(g/t)

Gold
(,000 ounces)

0.2

45

0.62

897

0.3

30

0.81

781

0.4

22

0.98

693

0.5

17

1.15

629

0.6

13

1.32

552

0.7

10

1.50

482

0.8

8.2

1.68

443

0.9

6.8

1.86

407

1.0

5.7

2.03

372

1.2

4.2

2.37

320

1.5

2.9

2.84

265

(1) N.I. 43-101 inferred mineral resources at Rozino (March 2018) were estimated by Jonathon Abbott, a member of the Australian Institute of Geoscientists and employee of MPR Geological Consultants Pty Ltd of Perth, Australia.  Mr. Abbott is a Qualified Person, as defined by National Instrument 43-101.

Metallurgy

The Rozino project is a typical low sulphidation epithermal gold deposit hosted within Palaeogene sediments as disseminations, replacement and vein mineralization. The mineralogy of the Rozino deposit is simple.

Results of metallurgical test work completed by Wardell Armstrong and reported in March 2018 show gold recoveries up to 92.9%. Test work on various grades of mineralized samples included industry standard bottle roll and agitated leach tests to assess potential gold recoveries for heap leach and tank leach processing, respectively. The test work confirms the simple style of mineralization and very low sulphide content are amenable to the application of modern extraction technology.

Initial Metallurgical Test Work (March 2018)

Average Sample Grade
(g/t Au)

Cyanide Consumption
(kg/t)

Lime Consumption
(kg/t)

Recoveries
(%)

Fine Agitated Leach Test Results

5.44

1.70

0.45

92.9

1.18

1.42

0.28

88.0

0.50

1.99

0.35

74.8

Coarse Bottle Roll Test Results

5.44

0.23

0.23

57.3

1.18

0.26

0.27

61.1

0.50

0.42

0.28

68.4

Fine Agitated Leach & Coarse Bottle Roll Leach Results from the Main Zone Rozino Gold Deposit, Bulgaria.

Historical Exploration

Historical drilling completed at Rozino prior to Velocity’s involvement includes 86 vertical holes drilled by Geoengineering EAD, 40 angled holes drilled by Hereward Ventures Ltd.  and 15 holes drilled by Asia Gold Corp. for a total of 22,284m.  From this master database 28 Hereward drill holes (3,794m) and 6 Asia Gold drill holes (740m) are within the current Velocity resource area. 

Location

The Rozino project lies within the municipalities of Ivaylovgrad and Krumovgrad in southeast Bulgaria, approximately 350km by road east-southeast of the capital, Sofia.

The Rozino project is located 20 kilometres east of the 0.85Moz Ada Tepe gold deposit, currently being developed by Dundee Precious Metals Inc. (TSX: DPM), and 50km southeast of the city of Kardzhali, which is host to tailings and gold processing facilities operated by Gorubso.  Ada Tepe measured and indicated resource (2013); Upper Zone 5.0Mt @ 2.99g/t gold (0.482Moz, 0.6g/t COG) and Wall Zone 1.9Mt @ 6.13g/t gold (0.377Moz, 0.8g/t COG). 

Readers are cautioned that Ada Tepe is an adjacent property and that Velocity has no interest in or right to acquire any interest in the deposit, and that mineral deposits on adjacent or similar properties, and any production therefore or economics with respect thereto, are not in any way indicative of mineral deposits on Velocity’s properties or the potential production from, or cost or economics of, any future mining of any of Velocity’s mineral properties.

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