Historical Gold Resources on Mining Concession
Velocity has negotiated an option to earn a 70% interest in the Sedefche gold project through delivery of a NI 43-101 feasibility study. Sedefche is located on a fully permitted mining concession and while historical resources of 101,000 ounces(1) gold have been published (2006), the deposit has only been explored to approximately 60 metres from surface. Planned due diligence will focus on historical exploration and assess the potential to discover more mineralization in and around the existing deposit.
Cautionary Statement Regarding Historical Resources
(1) Historical resources at Sedefche (2006) were calculated by Gorubso using the Bulgarian classification scheme, based on manual polygonal methods of resource estimation. Resources were submitted to and accepted by the Bulgarian government, Dragiev, H, 2006, “Momchil Prospecting License, Report at the ‘Zvezdel - Pcheloyad Ore Field’, Geological Report with Resource And Reserve Recalculation of ‘Au-Ag Ores’ at the Sedefche Deposit”. In order to verify the potential existence of additional unmined mineralization at Sedefche, significant drilling will be required.
The Company is not treating the historical resources referenced above as current mineral resources 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. Historical resources are included in this presentation because they are considered relevant by the Company as they form additional support for the potential optioning of the Gorubso Properties by Velocity.