Velocity Minerals Ltd. · TSXV:VLC
Velocity Minerals — Investor Presentation (January 2021)
16 slides from Velocity Minerals's investor presentation, January 2021
Slide 1: Building a Multi-Asset Gold Production Profile
Building a Multi- Asset Gold Production Profile TSX-V: VLC OTCQB: VLCJF Frankfurt: VMSP JANUARY 2021
Slide 2: Forward Looking & Cautionary Statements
Forward Looking & Cautionary Statements Forward Looking and Cautionary Statements This presentation contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian and U.S. securities legislation, including th
Slide 3: Building Multi-Asset Production
‘Hub & Spoke’ Development Strategy in Bulgaria – Envision open pit mining of satellite deposits & processing in a central plant Building Rozino Project – Prefeasibility Study1 after-tax NPV5% of $163 million Multi-Asset and after-tax IRR of 27.4% (August 2020) Production Upside at Rozino – Opportuni
Slide 4: Hub & Spoke Development Strategy
Hub & Spoke Development Strategy OPEN PIT MINING OF SATELLITE DEPOSITS & PROCESSING IN A CENTRAL PLANT Staged open pit mining of satellite deposits On-site flotation plant to produce concentrate Trucking of concentrate on existing roads Further processing in existing off-site processing plant Gold d
Slide 5: $8.9 Million Strategic Investment and Private Placement
$8.9 Million Strategic Investment and Private Placement* $6.7 million strategic investment with Dundee Precious Metals (TSX: DPM) 13,394,000 common shares at $0.50 for $6,697,000 on a private placement basis 9.99% ownership in VLC issued and outstanding shares Right to nominate one director to VLC B
Slide 6: Capital Structure
Capital Structure ISSUED & OUTSTANDING 135,374,015 Warrants Share Price (Jan 20, 2021) 52 Week High-Low 19,456,812 Weighted average exercise price $0.36 $0.51 $0.54 - $0.20 Options 7,580,000 Weighted average exercise price $0.35 Last Private Placement Market Capitalization Convertible Debentures 20,
Slide 7: Corporate Shareholders
Corporate Shareholders Artemis Gold Dundee Precious Metals Team founded and sold Atlantic Gold Corporation and its low cost Mid-tier gold producer with operations in Bulgaria ‘Hub & Spoke’ gold operation in Canada to St. Barbara Limited (ASX:SBM) in July 2019 for over $800 million Ada Tepe open pit
Slide 8: Existing Processing Plant
BU LG A RIA N OPERAT ING PA RT NER – GORU BSO KA RD ZHA LI A D Existing Processing Plant Shortened Permitting Timelines On-site development at Rozino requires permitting for mining, flotation, and storage of benign waste materials Off-site processing plant permitted and operating Capital Cost Effici
Slide 9: Exploration Projects and Mines in Bulgaria
Exploration Projects and Mines in Bulgaria Rozino Project Ada Tepe Mine, Dundee Precious Metals Page | 9
Slide 10: Prefeasibility Highlights
R ROO ZZ II N NOO GOLD PROJECT JOINT VENTURE Prefeasibility1 Highlights After-tax NPV5% After-tax IRR All-in Sustaining Costs2 US$123 M 27.4% US$755 per oz. Cash Cost3 Total Estimated Capital Cost Pre-production Capital Cost US$699 per oz. US$94.8 M US$87.1 M Probable Mineral Reserve 11.8M t @ 1.22
Slide 11: Financial Results & Sensitivities
ROZINO PREFEASIBILIT Y STUDY Financial Results & Sensitivities Financials After-Tax NPV5% Sensitivities After-Tax IRR% After-tax NPV5% of US$123 million and after-tax IRR of 27.4% (US$M) -25% 46.5% 158 Capital CAPEX Base Case 27.4% 123 +25% 15.3% 77 Total capital costs of US$94.8 million (incl. 11%
Slide 12: Exploration Upside
ROZINO Exploration Upside Opportunities for project enhancement and expansion Multiple targets within 2-5km of proposed Rozino processing plant Drill testing of targets for resource definition in feasibility Targeting near surface deposits with open pit potential for trucking of ROM material to Rozi
Slide 13: Pipeline of Projects in Bulgaria
Pipeline of Projects in Bulgaria Multiple exploration projects with active exploration programs Spectrum from early-stage discovery to advanced engineering Rozino – Potential satellites within a few km of planned infrastructure Projects – Stand-alone projects within trucking distance of central proc
Slide 14: Voden Gold Target
IGLIKA Voden Gold Target Untested Targets Despite location in prospective porphyry – epithermal belt, the Voden target has never been drilled historically Strong Geochemistry Excellent gold-in-soil anomalies over >1km strike length More sampling planned to expand limited area of investigation System
Slide 15: Obichnik Drilling Results
OBICHNIK Obichnik Drilling Results Cross section D4 showing significant intersections at the Durusu zone. Durusu Zone – Drilling Highlights 30.9m at 5.35 g/t gold, incl. 19.9m at 7.87 g/t gold Premka Zone – New High-Grade Discovery Drilling Highlights 39.9m at 2.07 g/t gold, incl. 15.3m at 4.81 g/t
Slide 16: Building a Multi-Asset Gold Production Profile
Building a Multi- Asset Gold Production Profile Velocity Minerals Ltd. TSX-V: VLC 2300 – 1177 West Hastings Street OTCQB: VLCJF Vancouver, BC V6E 2K3 Phone: 604 484 1233 Frankfurt: VMSP E-mail: info@velocityminerals.com JANUARY 2021
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