June 10 (SeeNews) - Canadian mineral exploration and development company Velocity Minerals said on Monday that it has entered into an option agreement with Bulgaria's Gorubso Kardzhali to acquire a 70% interest in the 388-hectare Momchil property in southeast Bulgaria, which includes the Obichnik gold project.
Under the terms of the option agreement, Velocity can earn a 70% interest in the property by delivering a mineral resource estimate, the Canadian company said in a statement.
"The deposit is open for expansion and requires systematic exploration to investigate its full potential and to deliver a mineral resource estimate prepared under NI 43-101," Velocity said. "Concurrent with and building upon the Company’s Rozino prefeasibility activities and the recently announced Makedontsi option agreement (see news release 28 May 2019), a program of modern integrated exploration is planned in order to assess mineralization potentially amenable to open pit mining," it added.
The company is currently awaiting results from a ground magnetic survey and surface soil geochemistry tests, which it has already completed. A total of 525 soil samples and 29 line kilometers of magnetic data have been collected, Velocity announced.
Velocity also plans to assess the reliability of historical drill results with angled heel-to-toe drilling across mineralized zones as well as isolated exploration drill tests - approximately 10 drill holes for an expected total of 1500 m.
"The aim of the drill campaign is to verify mineralization as well as increase understanding of geometry, continuity of mineralization, and geotechnical and hydrogeological aspects of the deposit," Velocity said.
Last month, Velocity entered into another option agreement with Gorubso Kardzhali, allowing the Canadian company to earn a 70% stake in the 194-hectare Nadezhda property in southeast Bulgaria, which includes the Makedontsi gold project.
Both the Momchil and Nadezhda properties are located some 10 km by road from Gorubso's CIL processing plant.
Velocity also has 70% interest in Bulgaria's Tintyava Property, which holds the Rozino gold deposit. It earned the interest through an option deal with Gorubso Kardzhali.