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Velocity Minerals Ltd (3)
Symbol VLC
Shares Issued 74,886,759
Close 2018-10-29 C$ 0.15
Market Cap C$ 11,233,014
Recent Sedar Documents

Velocity Minerals files Rozino PEA technical report

2018-10-29 14:46 ET - News Release

Mr. Keith Henderson reports

VELOCITY FILES PEA TECHNICAL REPORT ON SEDAR FOR THE ROZINO GOLD PROJECT, TINTYAVA PROPERTY, BULGARIA

Velocity Minerals Ltd. has filed on SEDAR an independent preliminary economic assessment (PEA) technical report for its Rozino gold project, Tintyava property, located in southeast Bulgaria. The report entitled, "Preliminary Economic Assessment -- Rozino Project, Tintyava Property, Bulgaria," is dated Oct. 26, 2018 (effective date Sept. 17, 2018), and 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 PEA results were previously disclosed in the company's news release dated Sept. 17, 2018. The PEA provides a base case assessment of developing Rozino by open-pit mining, on-site crushing, milling and flotation to produce a 30-gram-per-tonne gold concentrate. The concentrate would then be trucked 85 kilometres on existing roads to an existing and operating CIL processing plant, where saleable gold dore would be produced.

PEA highlights:

  • After-tax financials -- after-tax net present value 5 per cent of $129-million and after-tax internal rate of return of 33 per cent;
  • Cash cost -- all-in sustaining cost of $543 (U.S.) per ounce;
  • Annual gold production -- steady-state annual production of 65,000 ounces and peak annual production of 78,000 ounces;
  • Capital costs -- total estimated capital costs of $97.6-million (includes contingency);
  • Sustaining capital -- low estimated sustaining capital of $6.3-million;
  • Mining -- open pit with cut-off grade of 0.6 gram per tonne gold (COG), attractive strip ratio of 2.5 and 1.51 g/t life-of-mine (LOM) gold grade;
  • Processing -- on-site flotation producing gold-bearing pyrite concentrate assaying 30 g/t gold and transportation to an existing CIL plant (located 85 kilometres from the project) for processing;
  • ROCE -- return on capital expenditure of 3.3;
  • Mineralization -- mineralization remains open for expansion.

The PEA is preliminary in nature and includes inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

The technical report is available for on SEDAR as well as at the company's website.

About Velocity Minerals Ltd.

Velocity Minerals is a gold exploration and development company focused on Eastern Europe. The company's management and board include mining industry professionals with combined experience spanning Europe, Asia and the Americas as employees of major mining companies, as well as founders and senior executives of junior to mid-tier public companies. The team's experience includes all aspects of mineral exploration, resource definition, feasibility, finance, mine construction and mine operation, as well as a record in managing publicly listed companies.

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