Vancouver, British Columbia – Velocity Minerals Ltd. (TSXV: VLC) (“Velocity” or the “Company”) announces it has filed on SEDAR an independent Prefeasibility Study (“PFS”) Technical Report (the “Report”) for its Rozino gold project (“Rozino” or the “Project”) located in southeast Bulgaria. The Report entitled “Rozino Gold Project, Pre-feasibility Technical Report” is dated October 14, 2020 (effective date August 30, 2020) 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 PFS results were previously disclosed in the Company’s news release dated August 31, 2020.
The PFS establishes the Rozino deposit as supporting an economic open pit mine operation with gold recovery by a combination of on-site concentration in a flotation plant and further processing to produce a gold-silver doré in the existing and operating processing plant located in Kardzhali, 85 km by road from Rozino, where doré would be produced.
All amounts are reported in United States dollars (US$) unless otherwise specified.
Prefeasibility Study Highlights
- After-Tax Financials: After-tax NPV5% of CAD$163 ($123) million and after-tax IRR of 27.4% using a base case gold price of $1,500 per ounce.
- Life of Mine Earnings: $293 million before interest, taxes, and depreciation.
- Cash Cost: All-in sustaining cost2 of $755 per ounce of gold and cash cost3 of $699 per ounce of gold.
- Capital Costs: Total estimated capital costs of $94.8 million and pre-production capital costs of $87.1 million (including an 11% contingency).
- Mineral Resource: 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.
- Initial Mineral Reserve: Probable Mineral Reserve at a 0.5 g/t gold cut-off grade of 11.8 Mt at 1.22 g/t gold for 465,000 ounces.
- Mining: Open pit with 0.5 g/t gold cut-off grade (COG), low strip ratio of 2.2 and 1.22 g/t life of mine (“LOM”) gold grade.
- Conventional Process Flow Sheet: Returns 79.3% gold recovery to doré at the operating Processing Plant.
- Processing: 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.
- Low Environmental Risk: Small project footprint with benign, non-acid generating and non-hazardous waste and tailings material.
- Opportunities for Project Enhancement: The Rozino gold deposit is open to the southeast and exploration is ongoing. Additional pit tailings storage capacity exists to accommodate potential increases in ore production.
SOURCE: Velocity Minerals
DATE: 15 October 2020