November 20 (SeeNews) - Canadian mineral exploration and development company Velocity Minerals said on Tuesday that it has received positive results from trench sampling, extending the known near surface mineralization zone at its Rozino gold project in Bulgaria.
Geological mapping completed in conjunction with trench sampling resulted in the discovery of altered subcrop, Velocity Minerals said in a statement.
"Velocity’s recently announced positive PEA was based on exploration and drilling to date. Management believes that there is potential to expand mineralization at Rozino beyond the extents of the pit outlines established in the PEA," Keith Henderson, Velocity’s president and CEO, said.
"These trench results together with rock samples collected during recent mapping support the potential for resource expansion and we look forward to drilling these targets in due course as part of the Rozino joint venture," Henderson added.
Earlier this month Velocity Minerals exercised its option to acquire a 70% interest in the Rozino gold project from local peer Gorubso-Kardzhali through delivery of a Preliminary Economic Assessment (PEA).
In September, Velocity announced that it has completed a PEA on the Rozino project, envisaging an after-tax internal rate of return (IRR) of 33.1% and an after-tax NPV5% of $129 million (110 million euro).
The PEA estimates steady state annual gold production of 65,000 ounces and peak annual output of 78,000 ounces. Capital costs are seen and $97.6 million, while sustaining capital is expected to amount to $6.3 million.
Saleable gold dore will be produced at Gorubso's CIL plant in Kardzhali.
($ = 0.8554 euro)