Mr. Keith Henderson reports
VELOCITY INTERSECTS HIGH GRADE GOLD MINERALIZATION AT CHALA GOLD MINE, SOUTHEAST BULGARIA
Velocity Minerals Ltd. has received initial positive drill assay results from underground exploration drilling at the operating Chala gold mine. Priority drill target zone 8A has been tested by three drill rings drilled on 50-metre centres to the west of existing underground development. Drill results at target zone 8A return gold intersections and consistency of grade both vertical and lateral to the gold-bearing vein mineralization currently being exploited at Chala. Velocity, through its Bulgarian partner Gorubso Kardzhali AD, has negotiated an option to earn a 50-per-cent interest in the Chala mine by incurring $1-million in exploration expenditures.
Target zone 8A
Target zone 8A has not been mined historically and no systematic exploration has been undertaken in this area. Previous exploration is limited to sparse, pre-Gorubso surface drilling, when modern drilling technology and borehole survey were not available. Velocity drilling at zone 8A identified the potential continuation of gold vein material in the Gap zone, a zone previously considered to be unmineralized. Drilling continues to the southwest where similar vein material has been drilled and sampled, with results pending.
If the results are positive, Velocity will have identified a vein target with a strike length in excess of 250 metres that is potentially exploitable utilizing the current Gorubso infrastructure. Further drilling of this discovery is required to better define its grade and distribution, and this work will form part of an infill drill program slated for completion by year-end. Results from the drill holes on cross-section 1 returned the highest grade results to date. Diamond drill hole CUD-002 intersected 1.0 metre grading 48.6 grams per tonne gold (estimated true width of 0.95 metre). This is interpreted to be the continuation of the gold-bearing vein currently being exploited by Gorubso approximately 50 metres to the east. Fan drilling from the same drill cuddy that intersected the vein 50 metres below, CUD-004, intersected 4.7 metres grading 1.95 grams per tonne gold (estimated true width of 1.85 metres). Drilling at zone 8A from a cuddy located 50 metres to the southwest on cross-section 2 intersected the same vein zone returning two significant intersects; CUD-013 intersected 1.4 metres grading 5.62 grams per tonne gold (estimated true width of 1.37 metres) and CUD-015 intersected 2.2 metres grading 5.92 grams per tonne gold (estimated true width of 1.71 metres). Results are pending for a third intersection at depth on this cross-section. The continuation of the target zone has been drilled a further 50 metres and 100 metres to the southwest and has intersected vein material in the on-strike position of veins in zone 8A; results are pending. Drilling at target zones 8 West and Aykaz failed to return significant gold mineralization and these targets do not warrant further drill testing at this time. All of the significant drill results to date are included in the attached table.
UTD DRILL RESULTS FROM ZONES 8A, 8WEST AND AYKAZ AT CHALA MINE
Drill hole From To Interval True width Gold Zone
ID (m) (m) (m) (m) (g/t)
CUD-001 No significant intersect 8 West
CUD-002 41.8 42.8 1.00 0.95 48.60 8A
CUD-003 78.5 79.7 1.20 1.04 1.48 8 West
CUD-004 91.6 96.3 4.70 1.85 1.95 8A
CUD-005 37.5 38.3 0.80 0.75 3.75 8A
CUD-006 No significant intersect 8 West
CUD-007 54.0 54.4 0.40 0.30 2.86 8A
CUD-008 No significant intersect 8A
CUD-009 No significant intersect 8 West
CUD-010 42.7 44.2 1.50 1.05 1.58 8A
CUD-011 No significant intersect 8A
CUD-012 No significant intersect Aykaz
CUD-013 75.2 76.6 1.40 1.37 5.62 8A
CUD-014 No significant intersect Aykaz
CUD-015 85.8 88.0 2.20 1.71 5.92 8A
Quality assurance/quality control
The work program at Chala was designed and is supervised by Stuart A. Mills, CGeol, the company's vice-president, exploration, who is responsible for all aspects of the work, including the quality control/quality assurance program. On-site staff at the project rigorously collect and track samples, which are then security sealed and shipped to ALS Global laboratory in Romania. Samples used for the results described herein are prepared and analyzed for gold by fire assay using a 30-gram charge in compliance with industry standards. A five-gram pulp is couriered to ALS's Ireland laboratory for aqua regia digest and ICP-AES multielement analysis. Field duplicate samples, blanks and independent controlled reference materials (standards) are added to every batch. Drill intersections in this news release are calculated using a 1.0-gram-per-tonne-gold trigger, a minimum 2.5-gram-per-tonne-gold composite and a maximum of one-metre consecutive waste.
Qualified person
The technical content of this release has been approved for disclosure by Stuart A. Mills, BSc, MSc, CGeol, a qualified person as defined by National Instrument 43-101 and the company's vice-president, exploration. Mr. Mills is not independent of the company.
About the Chala gold mine
The Chala gold mine was explored for base metals and latterly gold for over 30 years by the Bulgarian State before Gorubso began gold exploitation 11 years ago. Since the onset of mining, Gorubso has not drilled at Chala and have exploited/explored using only underground development. Velocity have spent over one year capturing analogue data and building a digital geological model for targeting. With the advent of modern drilling and survey technology, Velocity aim to test these narrow potentially high-grade veins. Gorubso has not explored beneath the lowest level of production 475-metre level and previous state drilling is sparse, with predominantly only base metal analyses and unsystematic gold analysis, rendering the lower zones of Chala effectively unexplored.
About Velocity Minerals Ltd.
Velocity is a gold exploration and development company focused on eastern Europe.
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