Velocity Minerals Ltd. (VLC:TSX.V) on March 5 released a maiden resource for its Rozino Gold Project in Bulgaria. The company reported that at a 0.5 g/t cut-off grade, the resource totals 17 Mt at 1.15 g/t gold for 629,000 ounces of gold.
The company noted that "the current resource estimate is based on approximately 7,500 m of diamond drilling and the Company continues to drill test the system and expects to complete approximately 5,000m of further drilling before initiating a PEA [Preliminary Economic Assessment]." Velocity stated that it expects to release the PEA in the second half of 2018, and that the PEA will contain an updated mineral resource estimate.
Stuart Mills, Velocity's vice president of exploration, stated, "We are a little over half-way through our planned drilling at Rozino, which will bring us to a planned PEA later in 2018. On completion of the PEA, the Company will earn a 70% stake in the Project. The results of this resource are excellent and keep us on track to deliver our PEA within one year of the drill start."
"Having started drilling in late July 2017, we have moved quickly to get to this interim resource estimate in just over 7 months. Our stated objective has always been to define potentially open-pittable resources and defining 90% of resources within 110m of surface is consistent with that goal," Mills noted.
Read Gwen Preston's profile of Velocity Minerals here.
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