Velocity reports positive prefeasibility results for Rozino gold project in Bulgaria

The study 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 processing plant located in the Bulgarian town of Kardzhali, 85 km away from Rozino, where doré would be produced, Velocity said in a statement earlier this week. 

The prefeasibility study financial model base case returns an after-tax net present value at a 5% discount rate of 163 million Canadian dollars ($124.3 million/105.2 million euro) and an after-tax internal rate of return of 27.4%, the mineral exploration company noted.

In addition to returning positive economic results, the study also outlines significant benefits, including shortened permitting timelines and capital cost efficiencies, as the existing processing plant in Kardzhali is currently operational, it has sufficient capacity to process concentrate from Rozino and its use reduces total capital cost requirements for the gold project. 

Furthermore, on-site development at Rozino only requires permitting for mining, flotation concentration, and disposal of relatively benign waste rock and tailings. The area of disturbance has been kept relatively compact to facilitate reclamation and closure, Velocity noted. 

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, Keith Henderson, Velocity president and CEO, said in the statement.

"The prefeasibility study presents financial results for the Rozino gold deposit as currently defined. Exploration work is ongoing aiming to discover and define additional mineralization within the 145 sq m exploration licence and at Velocity’s other option properties in the region, which could potentially fit into a Hub and Spoke development model," Henderson added.

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 is any guarantee that resources will be defined, the company's statement read. 

Over the next 12 months, Velocity will continue to aggressively explore the exploration properties in the surrounding area, aiming to discover and define mineral resources as part of its strategy, the CEO said. 

In July, Velocity said that it has received positive results from an additional 13 drill holes at the Rozino gold deposit and the Rozino South target. 

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. 

($ = 1.54954 Canadian dollars)