December 3 (SeeNews) - Canadian mineral exploration and development company Velocity Minerals said on Monday that it has initiated additional diamond drilling at its Rozino gold project in Bulgaria.
"Mineralization at Rozino is open for expansion and the drilling is aimed at increasing mineral resources outlined in the Rozino Preliminary Economic Assessment," Velocity said in a statement.
Velocity plans to complete 12 to 14 drill holes before the end of December, the first of which will test for depth extensions of mineralization intersected in recent trench sampling.
The remaining part of the drill programme is still subject to possible changes, as the company is waiting for results from additional trenching and a new soil sampling grid.
First drill results are expected in late December or early January.
Last month, Velocity Minerals exercised its option to acquire a 70% interest in the Rozino gold project from Bulgaria's 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)