Trucking distance to gold processing plant
After-tax IRR of 27.4% (Revised PFS, Dec 2021)
Conventional open pit mining and processing proposed
Reduced capital cost and permitting timelines
Compact mine footprint
The Rozino project is located within the Tintyava property owned by Tintyava Exploration AD, in which Velocity has 70% ownership with Bulgarian partner Gorubso Kardzhali A.D. holding 30%.
The Rozino project lies within the municipality of Ivaylovgrad in southeast Bulgaria, approximately 350km by road east-southeast of the capital, Sofia, and 85 km by road from Gorubso's gold processing plant.
Velocity published an independent revised prefeasibility study (Revised PFS) on the Rozino gold project located in southeast Bulgaria in December 2021. The Revised PFS establishes the Rozino deposit as supporting an open pit mine operation with gold recovery by a combination of on-site concentration in a flotation plant and further off-site processing in an existing, operating processing plant.
The Rozino project includes on-site crushing, milling and simple flotation to produce a gold concentrate with a grade averaging 30 g/t. The concentrate will be trucked 85 km on existing roads to the currently operating processing plant located in Kardzhali where gold doré will be produced.
After-tax NPV5% of US$123 million and after-tax IRR of 27.4% using a base case gold price of $1,500 per ounce.
US$293 million before interest, taxes, and depreciation.
All-in sustaining cost2 of US$755 per ounce of gold and cash cost3 of US$699 per ounce of gold.
Total estimated capital costs of US$94.8 million and pre-production capital costs of US$87.1 million (including an 11% contingency).
Indicated Mineral Resource at a 0.3 g/t gold cut-off grade of 20.5 Mt at 0.87 g/t gold, for contained gold of 573,000 ounces and an Inferred Mineral Resource at a 0.3 g/t cut-off of 0.38 Mt at 0.8 g/t gold for 10,000 ounces4.
Probable Mineral Reserve at a 0.5 g/t gold cut-off grade of 11.8 Mt at 1.22 g/t gold for 464,000 ounces.
Open pit with 0.5 g/t gold cut-off grade, low strip ratio of 2.2 and 1.22 g/t life of mine gold grade.
Returns 79.3% gold recovery to doré at the operating processing plant.
On-site flotation producing gold-bearing pyrite concentrate assaying from 15 to 40 g/t and transportation to the processing plant (located 85 km from the Project) for processing to produce doré.
Small project footprint with benign, non-acid generating and non-hazardous waste and tailings material.
The PFS was prepared by CSA Global, an international mining consultancy with experience in Bulgaria, in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects.
The Revised PFS also outlines significant benefits, including shortened permitting timelines and capital cost efficiencies, for the following reasons:
(effective date April 15, 2020)
| Within $1,500/oz pit shell | |||
|---|---|---|---|
| Indicated Mineral Resource Estimate | |||
| Cut-off Grade (g/t) | Tonnes (Mt) | Gold Grade (g/t) | Contained Gold (koz) |
| 0.2 | 27.2 | 0.72 | 630 |
| 0.3 | 20.5 | 0.87 | 573 |
| 0.4 | 15.5 | 1.04 | 518 |
| 0.5 | 12.0 | 1.22 | 471 |
| 0.6 | 9.42 | 1.40 | 424 |
| Inferred Mineral Resource Estimate | |||
|---|---|---|---|
| Cut-off Grade (g/t) | Tonnes (Mt) | Gold Grade (g/t) | Contained Gold (koz) |
| 0.2 | 0.49 | 0.7 | 11 |
| 0.3 | 0.38 | 0.8 | 10 |
| 0.4 | 0.29 | 0.9 | 8 |
| 0.5 | 0.23 | 1.0 | 7 |
| 0.6 | 0.17 | 1.2 | 7 |
(effective date August 30, 2020)
| Probable Mineral Reserves | ||||||
|---|---|---|---|---|---|---|
| Ore Type | Reserve Category | Tonnes (Mt) | Gold Grade (g/t) | Contained Metal (KOZ Gold) | Metallurgical Recovery (%) | Recoverable Metal (KOZ Gold) |
| Oxide | Probable | 1.9 | 1.07 | 64 | 67.4 | 43 |
| Transitional | Probable | 1.8 | 1.15 | 68 | 70.7 | 48 |
| Sulphide | Probable | 8.1 | 1.27 | 332 | 83.3 | 277 |
| Total | Probable | 11.8 | 1.22 | 464 | 79.3 | 368 |
Revised PFS pit shell showing Velocity drill holes and highlighting drill intercepts greater than 0.5 g/t gold.
