Iglika Overview

Velocity has an option agreement with Balkan Mineral Development OOD (BMD) to acquire a 100% interest in the 105 km2 Iglika gold-copper property located in southeastern Bulgaria.  The Iglika project is located approximately 170 km by road from the modern CIL processing plant of Velocity's Bulgarian partner.

The project is located in the westernmost portion of the prolific Tethyan belt that transects Bulgaria and hosts a number of epithermal gold and porphyry copper-gold mineral deposits and operating mines. 

Project Highlights

  • Under-explored property, located in a highly prospective precious and base metal mineral belt
  • Potential for both epithermal gold and porphyry copper deposits
  • Existing surface geochemistry and multiple drill-ready targets

Location of the Iglika property & principal known regional mineral belts.

Historical Estimates

An estimate is registered with the Ministry of Energy in Bulgaria for Iglika copper-gold skarn.   Approximately 42,000m of historical drilling has been completed on the Iglika property, most of which was focused on the Iglika copper-gold skarn deposit, which is not of immediate interest to Velocity.

Priority Targets and Planned Exploration

Velocity will be principally targeting epithermal gold systems with surface exploration and drill testing – several drill targets exist on the large property package.  Geophysical surveys will be undertaken on the copper porphyry targets in order to determine the best path forward.

Lalkovo – Epithermal gold target – historical exploration trenching returned 40.7m grading 1.18 g/t gold.  A single drill hole in this area intersected 6.5m grading 1.02 g/t gold.

Voden – Epithermal gold target with abundant anomalous surficial rock samples, including grab samples up to 9.56 g/t gold and trench sampling up to 4m grading 1.31 g/t gold.

Koruba – Outcropping porphyry copper mineralization with associated large untested copper anomaly.

Sharkovo – Porphyry target defined by an extensive magnetic anomaly under recent cover.

Iglika – The Iglika copper-gold skarn deposit is not of immediate interest to Velocity as a target.  The diorite intrusion peripheral to the skarn mineralization was not systematically sampled and is known to be mineralized.

Iglika Property Targets

Option Agreement

Under the terms of the option agreement (news release NR-20-15, July 8, 2020), Velocity will make a cash payment of $49,000 (paid) and incur exploration expenditure of $460,000 by December 31, 2020 to earn a 51% interest in the property.  Thereafter, Velocity can earn an additional 49% (total 100%) by incurring exploration expenditures of $765,000 by December 31, 2021.

BMD will retain a 2.0% net smelter returns royalty (Option Royalty), which will be capped at $6,700,000.  At any time, 1.0% of the Option Royalty can be purchased for $750,000 and an additional 0.5% of the Option Royalty can be purchased for $1,500,000.

Notwithstanding the option terms above, Velocity can purchase a 100% interest (Purchase Option) for $340,000 until December 31, 2021 or for $750,000 until December 31, 2022, either of which payments can be paid in cash or 50% cash and 50% Velocity shares.  If the Purchase Option is exercised, BMD will instead retain a 0.5% Royalty (Purchase Royalty), capped at $6,700,000.  100% of the Purchase Royalty may be purchased for $750,000, after which the property would be royalty free.

Date

Cash Payment
(CAD$)

Expenditure
Commitment (CAD$)

Interest

Signing

$49,000 (paid)

-

-

December 31, 2020

-

$460,000

51%

December 31, 2021

-

$765,000

100%

Key Terms of Iglika Option

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