Velocity Receives Approval for Work Program on its Dangovo Property, Bulgaria

Rhea-AI Summary

Velocity Minerals Ltd. has received approval for a 3-year work program at the Dangovo Prospecting License in Bulgaria. The Ministry of Energy’s approval allows for drill testing to commence in 2023. The Dangovo property is adjacent to the Makedontsi project, where a historical gold resource is recorded. Velocity aims to explore potential gold extensions from Makedontsi, indicated by previous geophysical surveys. The initial drilling program will cover 2,000 meters. This approval is the final step in the regulatory process following the acquisition of the property in late 2022.

Positive

• Approval received for a 3-year work program at Dangovo, facilitating drill testing.
• Dangovo's contiguous location with Makedontsi may allow for resource extension exploration.
• Initial 2,000m drill program planned to investigate gold-bearing structural zones.

Negative

• None.

VANCOUVER, British Columbia, Jan. 17, 2023 (GLOBE NEWSWIRE) -- Velocity Minerals Ltd. (TSX.V: VLC) (“Velocity” or the “Company”) announces that it has received approval for its proposed 3-year work program at the Dangovo Prospecting License (“Dangovo”). The approvals received from the Ministry of Energy enable drill testing to begin in 2023.

Dangovo Property Details

The Dangovo property is contiguous with the Company’s Makedontsi project (Figure 1), where a historical resource is registered with the Bulgarian State. Dangovo was acquired to explore for potential extensions of known gold mineralization at Makedontsi (Figure 2). Prospective lithologies are overlain by a thin layer of post-mineral limestone and drilling completed by the Company within the Makedontsi property indicates that the host-lithologies are preserved. Velocity has completed a geophysical survey (Controlled Source Audio-frequency Magnetotellurics (CSAMT)) and data is interpreted to indicate that gold bearing structural zones from the Makedontsi property may extend undercover onto the Dangovo property. These form the primary targets for initial drill testing which will be tested with an initial 2,000m drill program.

Figure 1. Map of the Makedontsi and Dangovo properties, southeast Bulgaria, showing the historical Makedontsi deposit, interpreted geology and prospective areas for exploration is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8bd3a432-44aa-4930-a541-1cae72518dcb.

The Dangovo property was acquired by staking and the prospecting license contract with the Ministry of Energy was signed in late 2022. Approval of the 3-year work program is the final step in the approval process.

Figure 2: Schematic cross section across the Makedontsi and Dangovo properties, showing the interpreted target horizon, which at Dangovo is untested by drilling is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/153ca0b1-6699-4633-9672-b133f3bcaf25.

Quality Assurance / Quality Control

The work programs in Bulgaria are designed and supervised by Daniel Marinov, MAIG RPGeo, the Company’s Vice President Operations who is responsible for all aspects of the work, including the quality control/quality assurance program. Geophysical surveys are carried out by geophysical consultants using up-to-date technologies, with the results checked by a third-party independent geophysicist for quality control. Raw data is processed and corrected and the results are interpreted by 2 independent groups of geophysicists under the direction of Company staff.

Qualified Person

The technical content of this release has been approved for disclosure by Daniel Marinov, RPGeo, a Qualified Person as defined by NI 43-101 and the Company’s Vice President Operations. Mr. Marinov is not independent of the Company as he is a director, officer, shareholder, and holds incentive stock options.

About Velocity Minerals Ltd.

Velocity is a precious metals and copper explorer focused in Eastern Europe. In Bulgaria, Velocity has a 70% interest in the Tintyava property, which includes the Prefeasibility-stage Rozino deposit. Velocity also has a 70% interest in the Momchil property (which includes the Obichnik project), a 70% interest in the Nadezhda property (which includes the Makedontsi project), a 70% interest in the Dangovo property (which is contiguous with the Makedontsi project), and a 100% interest in the Iglika property. Velocity’s management and board includes mining industry professionals with combined experience spanning Europe, Asia, and the Americas as employees of major mining companies as well as founders and senior executives of junior to mid-tier public companies.  The team’s experience includes all aspects of mineral exploration, resource definition, feasibility, finance, mine construction and mine operation as well as a track record in managing publicly listed companies.

On Behalf of the Board of Directors

“Keith Henderson”

President & CEO

For further information, please contact:

Keith Henderson
Phone: +1-604-484-1233
E-mail: info@velocityminerals.com
Web: www.velocityminerals.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "expects", "anticipates", "intends", "estimates", "plans", "may", "should", "would", "will", "potential", "scheduled" or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Such risks and other factors include, among others, statements as to the anticipated business plans and timing of future activities of the Company, the ability of the Company to obtain sufficient financing to fund its business activities and plans, delays in obtaining governmental and regulatory approvals (including of the TSX Venture Exchange), permits or financing, changes in laws, regulations and policies affecting mining operations, currency fluctuations, title disputes or claims, environmental issues and liabilities, risks relating to epidemics or pandemics such as COVID–19, including the impact of COVID–19 on the Company’s business, financial condition and results of operations, changes in laws, regulations and policies affecting mining operations, title disputes, the inability of the Company to obtain any necessary permits, consents, approvals or authorizations, the timing and possible outcome of any pending litigation, environmental issues and liabilities, and risks related to joint venture operations, and other risks and uncertainties disclosed in the Company’s continuous disclosure documents. All of the Company’s Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials.

Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not undertake any obligation to update any of the forward-looking statements in this news release or incorporated by reference herein, except as otherwise required by law.

FAQ

What is the significance of Velocity Minerals' approval for the Dangovo Prospecting License?

The approval allows Velocity Minerals to implement a 3-year work program, initiating drill testing in 2023, which could lead to discovering gold resources.

When will drilling start at the Dangovo property?

Drilling at the Dangovo property is set to begin in 2023 following the recent approvals.

How much drilling is planned at the Dangovo property?

Velocity Minerals plans an initial drilling program of 2,000 meters at the Dangovo property.

What geophysical surveys were conducted at the Dangovo property?

Velocity conducted Controlled Source Audio-frequency Magnetotellurics (CSAMT) surveys, indicating possible gold-bearing structures extending from the Makedontsi project.

What is the relationship between the Dangovo property and the Makedontsi project?

The Dangovo property is contiguous with the Makedontsi project, which has a historical gold resource, suggesting potential gold mineralization extensions.