Gold in Bulgaria? Drilling Says 'Yes'

Au Report

Source: Streetwise Reports 01/11/2018

It’s been full speed ahead for this TSX.V-listed gold explorer in Bulgaria, and the drill bit is showing results.

Velocity Minerals Ltd. (VLC:TSX.V) began drilling its Rozino gold project in southeastern Bulgaria in August, and has now drilled more than 7,000 meters. The company’s most recently released drill results show diamond drill hole RDD-040 returning “144.7m grading 1.52g/t gold, including 24.0m grading 4.05 g/t gold.”

“This is the thickest continuous drill intersection ever returned from the property averaging greater than 1.0g/t gold,” the company noted. Assay results have expanded the near-surface mineralization beyond the Main Zone to the East and North Zones.

“Velocity’s shares look set to turn higher soon.” – Clive Maund

Keith Henderson, Velocity’s president and CEO, stated, “Exploration at East Zone has been particularly successful with hole RDD-040 intersecting continuous high-grade gold mineralization from surface over a 144-meter drill intersection. The most recently completed drilling at Rozino has stepped beyond Main Zone, seeking to define additional zones of near-surface mineralization at North Zone and East Zone.”

Henderson also noted that “since closing the acquisition of Bulgarian assets in late July 2017, Velocity has rapidly advanced the project and based on positive results added a second rig in October to complete more than 7,000m in total. Our stated aim has been to define potentially open-pittable epithermal gold mineralization and the program has clearly met that objective.”

The Rozino project is located about 20 kilometers from Ada Tepa, which Dundee Precious Metals is developing.

“With 7,000m of drilling completed, we anticipate conducting another 7,000 to 10,000m of drilling, which will enable us to release a preliminary economic assessment (PEA). Our option agreement grants us 70% of the project upon delivery of the PEA, which we hope to complete by late summer,” Henderson told Streetwise Reports.

“Velocity closed a successful financing at the end of September.” – Clive Maund

“We are delivering on what we’ve said we were going to do,” Henderson said. “We’ve drilled and have gotten really good results. The results at Rozino point to near-surface gold mineralization, which makes the project potentially open-pittable. We will continue to release drill results as we receive them.”

Technical analyst Clive Maund charted Velocity Minerals on CliveMaund.com on Jan. 10 and noted “the stock looks cheap here, as it looks set to reverse to the upside soon.” Another positive factor to take into consideration, Maund stated, “is that the company closed a successful financing at the end of September, making it less likely that there will be another one soon.”

Maund concluded that “Velocity Minerals is close to a cyclical low and looks set to turn higher soon.” The stock, he said, is ‘completely ‘off the radar’ so the emphasis is on quiet accumulation without the expectation that it will go roaring up 2 days after we buy it. Nevertheless, once the trend reverses it could make good percentage gains from here.”

Want to read more Gold Report articles …read more

Source:: The Gold Report