September 18 (SeeNews) - Canadian mineral exploration company Velocity Minerals said that it received positive initial results from five drill holes at the Kazak target, part of Rozino gold deposit in southern Bulgaria.
"The discovery of gold mineralization at Kazak is important for the Rozino project, in that additional gold discoveries within trucking distance to a future mill at Rozino have the potential to add significant value to the project with relatively low capital additions," Keith Henderson, Velocity president and CEO, said in a statement published on Thursday.
An aggressive exploration programme at Rozino and at other gold projects located in the region aims to define additional gold resources that could potentially fit into Velocity’s "Hub and Spoke" development model, Henderson noted.
Velocity’s strategy envisages the development of a low cost "Hub and Spoke" operation in southeast Bulgaria whereby multiple gold projects produce gold concentrates for trucking to an existing, central processing plant for the production of doré. Other than Rozino, the projects referred to in the “Hub and Spoke” development model do not have defined resources nor is there any guarantee that resources will be defined, the company said earlier this month.
Earlier in September, the mineral exploration company received positive prefeasibility study results for the Rozino gold project. The results of the prefeasibility study further de-risks the project and provide opportunities for additional project enhancements as Velocity advances the project towards production, Henderson said at the time.
Drilling at the Kazak target, located some 2 kilometres south of the Rozino deposit, continues with a further three drill holes completed and an additional eight drill holes planned in the coming weeks to test the extents of the upbeat discoveries, Velocity said in Thursday's statement.
Velocity Minerals completed the acquisition of 70% interest in Bulgaria's Tintyava Property, which holds the Rozino gold deposit, from local company Gorubso-Kardzhali in 2019, through delivery of a PEA.