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Velocity Minerals Commences Underground Drilling at Chala Gold Mine, Southeast Bulgaria
VANCOUVER, British Columbia, June 27, 2018 (GLOBE NEWSWIRE) -- Velocity Minerals Ltd. (TSX-V:VLC) (“Velocity” or the “Company”) announces that it has initiated
About this update from Velocity Minerals Ltd.
[{"type":"text","content":" VANCOUVER, British Columbia, June 27, 2018 (GLOBE NEWSWIRE) -- Velocity Minerals Ltd. (TSX-V:VLC) (“Velocity” or the “Company”) announces that it has initiated underground drilling at the operating Chala Gold Mine (“Chala” or the “Chala Mine”). A total of 45 diamond drill holes have been planned for more than 5,000m of underground drilling from 8 drill positions (Figure 1) (the \"Drill Program\"). The drilling is being initiated by Velocity in connection with the successful negotiation and settlement of the terms of a property option agreement and joint venture agreement to be entered into between a wholly-owned Bulgarian subsidiary of Velocity and Velocity's Bulgarian partner Gorubso Kardzhali A.D. (“Gorubso”), whereby Velocity will be granted the option to acquire a 50% interest in the Chala Mine. Chala Underground Exploration Potential The Chala Mine is an underground gold mine exploiting high-grade epithermal gold-bearing veins. Since being acquired by Gorubso, the mine has been producing gold for approximately 11 years, with run-of-mine material trucked 40km to Gorubso’s CIL processing plant. Gold recoveries at the plant are in excess of 95% and gold dore is produced for sale to a Bulgarian smelter. Velocity believes that mineralization could be continuous at depth (Figure 2), below the levels of current mine development, and the current underground exploration drilling program is aimed at defining a mineral resource of sufficient size to justify future capital investment for further development and expansion of the Chala Mine. If the Company is successful in defining a new resource at Chala, changes in mining methods and increased mechanization could be justified thereby substantially increasing production and lowering unit costs. “Working together with our partner Gorubso at Chala, we have begun underground drilling and are excited at the prospect of defining new resources that can extend the life of the mine and build on the work that Gorubso has completed through mine development to date,” stated Keith Henderson, Velocity’s President & CEO. “We believe there is a good opportunity at Chala to discover resources and increase rates of production and the current drill program will allow us to begin to quantify that opportunity.” Planned Underground Drilling Drilling will begin ...