Velocity Minerals Ltd. · TSXV:VLC
Velocity Minerals — Investor Presentation (March 2021)
18 slides from Velocity Minerals's investor presentation, March 2021
Slide 1: Building a Multi-Asset Gold Production Profile
Building a Multi- Asset Gold Production Profile TSX-V: VLC OTCQB: VLCJF Frankfurt: VMSP MARCH 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 a Multi-Asset Gold Production Profile
‘Hub & Spoke’ development strategy – Envision open pit mining of Building a satellite deposits & processing in a central plant Multi-Asset Bulgarian partner with existing processing plant – Provides operating and permitting expertise Gold Rozino project Prefeasibility Study1 – After-tax NPV5% of $16
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: Two Corporate Shareholders
Two Corporate Shareholders Artemis Gold Inc. (TSXV: ARTG) Dundee Precious Metals (TSX: DPM) $13.1 million invested since March 2019 $6.7 million strategic investment (November 24, 2020) 32.3% ownership in Velocity issued and outstanding shares (March 8.5% ownership in Velocity issued and outstanding
Slide 6: Velocity Projects and Dundee Mines in Bulgaria
Velocity Projects and Dundee Mines in Bulgaria Rozino Project Rozino: 70% interest. Obichnik and Makedontsi: option to earn 70% interest. Iglika: 100% interest Ada Tepe Mine, Dundee Precious Metals Page | 6
Slide 7: Bulgaria – Mining Friendly Jurisdiction
Bulgaria – Mining Friendly Jurisdiction Mining Investment in Bulgaria EU member since 2007, member of NATO since 2004 10% corporate tax rate Mining law established 1999, updated 2011, draft 2020 Mining royalties (0.8 to 4.0%) compare favourably to established mining jurisdictions like Canada, Chile
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: Pipeline of Projects with Active Exploration Programs
Pipeline of Projects with Active Exploration Programs Positive Rozino prefeasibility returning an after tax IRR of 27.4% Rozino – Potential satellite deposits within a few km of planned infrastructure Obichnik – Discovery of new zones of mineralization and initial resource estimate Makedontsi – Prog
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 – Potential Satellite Deposits
ROZINO Exploration Upside – Potential Satellite Deposits Opportunities for Low Capital Resource Additions Multiple targets within 2-5km of proposed Rozino processing plant Drilling discovered two promising zones of mineralization in 2020 – Rozino South and Kazak Testing for near surface deposits wit
Slide 13: 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 14: Drilling Results & Durusu Initial Resource Estimate
OBICHNIK Drilling Results & Durusu Initial Resource Estimate Durus Zone – Initial Resource Estimate (Feb 2021) Inferred mineral resource estimate at 0.3 g/t cut-off grade 4.4Mt at 1.1 g/t gold for 156,000 ounces 80% of resources within 120m of surface Durusu Zone – Drilling Highlights 30.9m at 5.35
Slide 15: Drilling Results
MAKEDONTSI Drilling Results Gold mineralization drilled where exposed at surface Limited historical drilling beneath thin limestone cover suggests that mineralization continues under cover Drilling intersected the Kalina zone in 2021 – 17.2m grading 0.65 g/t gold Cross section K1 showing the discove
Slide 16: Management & Board
Management & Board KEITH HENDERSON | CEO, Director MIKE HOFFMAN | Director STUART MILLS | VP Exploration 25 years global experience in large range if commodities. 35 years of practice in the mining industry, including Previously country manager for Orca Gold in Sudan with BSc (Hons) and MSc Geology.
Slide 17: Capital Structure
Capital Structure ISSUED & OUTSTANDING 157,104,535 Share Price (Mar 25, 2021) 52 Week High-Low Warrants 19,158,228 $0.47 $0.61 - $0.26 Options 7,355,000 Last Private Placement Market Capitalization (closed Nov 24, 2020) FULLY DILUTED 183,617,763 $8.9 M $74 M (Mar 25, 2021) ISSUED & OUTSTANDING FULLY
Slide 18: Building a Multi-Asset Gold Production Profile
Building a Multi- Asset Gold Production Profile Velocity Minerals Ltd. TSX-V: VLC 890 – 999 West Hastings Street OTCQB: VLCJF Vancouver, BC V6C 2W2 Phone: 604 484 1233 Frankfurt: VMSP E-mail: info@velocityminerals.com MARCH 2021
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