Velocity Minerals: Building a Multi-Asset Gold Production Profile

0:04 Good morning. I'd like to start by welcoming everyone to the call and by drawing your attention to the information here related to forward-looking and cautionary statements. For today's call, we'll begin with a few introductory slides, which will explain velocity strategy and objectives. After that, we'll pause for a short video, and that will let you see some of the company's activities and operations in Bulgaria. And then once the video is finished, I'll come back and run you through some of our key projects. This will all take about 20 to 25 minutes. And after that, there will be a question and answer session. You can place questions within the chat box as we progress through the presentation and we'll try and answer as many of them as we can within the 1 hour allocated for the webinar.

0:56 And perhaps also note that there is a handout available for download in the chat section.

1:08 So if you're new to Velocity, we are a golden development exploration company working in Bulgaria. We're aiming to build a multi-asset production profile, utilizing a hub-and-spoke development model. In Bulgaria, we are partnered with Gurupsu Kurjeli, which is a private Bulgarian mining company. GURUPSU operated as a base metal producer in the region from the 1930s and more recently, following privatization in the 1990s, the company switched to gold mining. So Velocity's strategy is centered on an existing CIL processing plant that is permitted and currently operating.

1:54 Groupsu owns and operates the processing plant and is also a 30% participant in our joint venture projects with velocity holding 70% and operating. We're exploring multiple advanced exploration assets in the region surrounding the processing plant and all deposits identified could ultimately utilize the central plant. Our most advanced asset is the Rosneau Gold Project on which we recently published the results of a pre-feasibility study for the project which returned positive after-tax economics. In the space of just 3 years we have gone from the very first drill hole to initial resources, preliminary economic assessment and now a pre-feasibility study. And comparing that with many of our peers, we think that this is an impressive rate of progress.

2:45 It's important to note though that this is just 1 deposit in our hub and spoke model and there are multiple other projects currently being developed. We have exploration upside in the area immediately surrounding Rosno, where Discoveries would logically be developed using mine infrastructure, planned to be built at Rosno. And last week we disseminated news outlining a new discovery about 2 kilometers south of Rosno at Kazak, where drilling is currently ongoing. We have upside also within a regional pipeline of projects, which are also being actively explored. Our aim here is to provide certainty about the cumulative resources that the various projects, and to begin to understand the cumulative value that those resources bring to the entire project.

3:43 So this diagram is something we often begin our presentations with. It's an outline of the hub and spoke model and some of our projects that are currently being explored. At all projects, our aim is to define open pit resources, like at Rossnow, where about 90% of the resources are found within 100 meters of surface and the strip ratio is approximately 2 to 1. At all of our projects we also intend to produce a concentrate for transportation to the central plant and at Rosneau this is a simple flotation which generates a 30 gram per tonne gold concentrate. The pre-feasibility study at Rosneau defines approximately 60,000 ounces of gold production per year, which accounts for approximately a quarter of the designed capacity of the central plant.

4:30 Ultimate annual production capacity could be more than 200,000 ounces, assuming that we can define enough resources at the other projects to support that level of production.

4:48 So these maps compare projects in Nova Scotia operated by Simbarbra with the projects being explored and developed by Velocity in Bulgaria. The projects in Nova Scotia were originally developed by Atlantic Gold before the company was sold to Simbabwe for 800 million dollars cash in about the middle of 2019. Simbabwe is in production and Velocity is not yet in production but the maps are at the same scale and show striking similarities in layout between the 2 projects. Atlantic Gold invested $9 million into Velocity in early 2019. Management at Atlantic recognized the potential of Velocity's projects in Bulgaria. And that $9 million investment now sits with Artemis Gold, which is an $800 million development company led by Stephen Dean.

5:45 So we'll have a look at the processing plant. I want to make a clear distinction between on-site processing at the mine site and off-site processing at the central plant. On-site at Rosno, mining, crushing and flotation will be utilized to produce concentrate. We envisage a similar process at other projects, although the concentrate production at each of these will be optimized for this specific project. Final processing happens offsite of the central plant where concentrate is processed to produce dore. The photographs on the right of the slide, excuse me, the photographs on the right of the slide here show Karupsu's historical plant in black and white colour, or sorry, in black and white, and the modern day gold processing plant are the photographs that are in color.

6:34 The existence of the central plant reduces capital costs for Rosneau and the other projects, but more importantly it reduces permitting risk and overall permitting time. The plant has capacity to process all material from Rosno and critically it has excess capacity to process material from other projects and this is how we can potentially get to 200,000 ounces annually. Velocity is actively exploring the project pipeline and aiming to define enough mineralized material to fill this capacity. So we often get asked about Bulgaria. You know, mining investment in Bulgaria is increasing and many companies are beginning to understand that the investment climate is very, very positive.

7:27 Bulgaria is a European Union country. It's a low 10% corporate tax rate and competitive mining law. Royalties are calculated on a sliding scale and work out to be about 2% for the Rosno project. Bulgaria is definitely a mining country and it's been described as the powerhouse of mining in Europe. The country ticks a lot of boxes for mining investment. There's a very well-educated population and lots of experienced mining industry professionals and almost all of Velocity's staff in Bulgaria are Bulgarians. Dundee Precious Metals, as a foreign investor, have been operating in Bulgaria for about 15 years now with 2 operating mines. And I think interest levels from other international mining companies are increasing.

8:15 So with that brief introduction, we'll pause for a short video and then I'll come back and walk you through some of the projects. Velocity is a gold exploration and development company focused on an emerging gold district in southeastern Bulgaria. Velosti's strategy is to develop a low-cost hub-and-spoke operation, whereby multiple gold projects produce gold concentrate for trucking to our Bulgarian partners' central gold processing plant for production of dore. We are currently in the region of the Rosino mine, which is the most advanced project in our portfolio of geological research facilities in southeastern Bulgaria.

9:16 The Rosino project is located in the eastern Radovi Mountains, in the western Tethian gold belt, an emerging gold belt that runs across southeastern Europe. Historically, the region was known for base metal mining and processing in the 1940s and 50s. In the late 1990s, the potential for gold mineralization was recognized in this region. Velocity entered into an option agreement on the project with our Bulgarian partner Gurub Sikurgili in mid-2017

9:42 and immediately began exploration drilling and environmental monitoring at Rozino. We are in the office of Blossom Minerals in Ivailovgrad. The border with Greece is 5 km south, and the border with Turkey is 20 km east.

10:15 From a vial of grad, about a 40-minute drive. Rossino is about 85 kilometers by paved road to our partner's existing gold processing plant, about 2 hours drive. The Rossino project is host to epithermal gold mineralization. The mineralization is near surface with about 90% of the resources within 100 meters of the surface. The mineralogy is simple and clean, with no deleterious elements.

10:45 We have carried out geological survey, soil testing, ditches and over 24,000 m of drilling, and we continue to search for the next discovery. The Rosino PFS defines the project as an open pit mine, with flotation being utilized to concentrate product grade to 30 grams per ton of gold, and reducing the volume of material for transport to the central processing plant at Gorubso Kurdjeli.

11:18 This emerging gold belt in Bulgaria provides our experienced geologists with many opportunities to further explore and potentially discover additional epithermal gold deposits surrounding the Rossino deposit. If we can outline additional nearby surface deposits, they could potentially be open pit mined and trucked to the proposed Rossino flotation plant. Any additional ore feed at the Rossino plant has the potential to enhance the robust Rossino project economics with minimal additional capital costs. Our exploration efforts have defined multiple new drill target zones located within several kilometers of Rosino. Each target is accessible by road and has similar geology to the Rosino deposit. When Velosti began its exploration program at Rozino in mid-2017, it also started a comprehensive environmental assessment and monitoring program in the area.

12:14 We are currently in the village of Rozino, where our meteorological station is located. For 2 years, We have been monitoring the climate for the region for 2 years, measuring the temperature, humidity, wind speed and the pollution of the atmosphere. We believe it is our responsibility to ensure that the project will meet international environmental standards and receive community support while we continue to define gold ounces on the project. The core samples from Rossino drilling are sent to the core storage at Hivalegrad. Here, the geologists examine the core to increase their knowledge of the geology of the deposit. After splitting and sampling, the core is prepared for shipment to the laboratory, where it will be analysed for its gold content.

13:17 Okay, welcome back. So today I'm going to walk through highlights of the pre-feasibility study at Rossnow, kind of at a high level, and after that I'll review exploration upside in close proximity to Rossnow. And finally we'll touch on some of the upside provided by our regional pipeline of projects. So looking at this slide, Rosano is the most advanced of Velocity's projects. And this is the results of a pre-feasibility study. Assuming a base case of $1500 per ounce gold, the project returns solid after-tax numbers. MPV5 is $123 million US dollars or $163 million Canadian dollars and the IRR is 27.4%.

14:11 Operating costs are lower quartile and cash costs a little under $700 per ounce. Pre-production capital, we think, is a very manageable $87 million US. With this study, for the first time, we've disclosed a mineral reserve. The resource behind this is approximately 570,000 ounces, and then the inclusive mineral reserve is 465,000 ounces. And the operation is expected to reach steady state production of approximately 60,000 ounces per year over a seven-year mine life. So just to look in a little bit more detail at the economic analysis and sensitivities, the project is most sensitive to gold price and capital and operating cost.

15:03 Looking at the gold price, if we increase the base case $1,500 per ounce to $1,875 per ounce, it increases the Canadian dollar MPV to 291 million and increases the IRR from 27% to 41%. Increasing the price further to spot prices that we've recently seen and a little beyond obviously brings significant additional increases in value. Similarly, capital reductions would have a significant impact, assuming the $1500 gold base price, a 25% reduction in capital would increase IRR from 27% to 46%.

15:52 So Rosano fits really well into our hub and spoke model. All operational aspects of the project are conventional from open pit mining to flotation which produces concentrate. The existence of so many targets within a few kilometers of Rosno is key to the expansion potential of the project. The existence of paved roads between Rosno and the central plant is an example of just how good the Bulgarian infrastructure is. And the project's been designed with a very small footprint which will help with mine permitting. Though the waste rock is particularly benign, the project has no acid generating potential and you know we think it's a project with many built in advantages in that respect. All of our permitting is advanced and probably a bit more advanced than you might expect it to be for a project at this stage of development.

16:45 We've been collecting baseline data for 3 years. Our community engagement is moving forward positively. And we enjoy good support from the local municipality and communities in the surrounding area.

17:03 Just looking briefly at our conventional flow sheet and looking at both flotation on-site at Rossino and off-site at the central processing plant, the 30 gram per tonne concentrate produced at Rossino has a mass pool of a little less than 4%, so volume reduction is really significant. The 85km concentrate haul from Rosno to the central plant amounts to approximately 10 20 ton highway trucks per day, and transportation does not have a material impact on the cash flow model. Following production of dore at the central plant, refining is expected to take place in a nearby refinery within Bulgaria. The mine life here, it's currently defined at 7 years, but we believe that it's subject to exploration additions and those would increase the mine life.

18:00 Ore production is phased, high grade ore is produced for the first 5 years, low grade ore for the final years. And design work on the mine layout took account of the desire to minimize the mine footprint. So backfill in the later part of the mine life makes good use of available space. There's excess capacity built into the design so that future exploration successes can be accommodated within the current plan.

18:32 So moving on from Rosano and the pre-feasibility study, let's look at how exploration upside in the immediate area can impact the project. The map here shows the location of exploration targets in close proximity to Rosno, basically within 1 to 4 kilometers. We believe that discoveries here would logically be developed using mine infrastructure planned to be built at Rosno. On the map we can see in the top left hand side the pre-feasibility pit outlined in red. And drilling is ongoing to extend the Rosno deposit which is still open. We've recently published positive results for drill holes just outside the pit, the results of which are not actually included in the pre-feasibility study. So there's some potential for incremental growth at the deposit itself.

19:22 We're also exploring for additional mineralization at Rosno South and Kazakh, both of which are located within 2 kilometers of Rosno. At Rosno South mineralization has been intersected in several exploration drill holes over about 200m strike length and drilling is ongoing. And at Kazak we just announced the discovery of a completely new mineralised zone where 3 of the first 5 drill holes intersected significant mineralisation. Grades here include 13m at 1.2g per tonne gold and that includes 5 meters at 2.24 grams per tonne gold. So lots of potential there and the drilling will continue. Because this mineral belt was historically a base metal producing area, gold exploration in the area is really quite new. Dundee Precious Metals is operating very successfully at the Krimovkrad mine, which is located approximately 20 kilometers west of Rosno, and Velocity is in advanced exploration at various projects in the area.

20:20 The opportunity to discover new gold deposits is very good, and systematic exploration within this belt can be very effective, as I think we've been able to demonstrate over the last 3 years of our own programs.

20:39 So stepping back from Rosanoff, here we see a lot more detail on our other projects in the pipeline. And this figure aims to show the approximate location of each of our targets. And with colored bars, we're showing their relative stages of development. So reds and pinks show projects that are quite advanced, and green through the yellows and oranges are kind of exploration, drilling, and resources. We've just been looking at Rossino and the targets surrounding it. To the west, to the left-hand side of your screen, we have multiple projects. Some are quite advanced, and others are a little earlier stage. But we expect to produce resource estimates on 2 of these projects before year end. And in the northeast, up to the top right-hand side of your slide, we have our newly acquired Iglica project, which is a very large 100 square kilometer property with quite a few targets already defined. And I've sort of highlighted 4 of those on this slide.

21:35 We certainly don't have time to look at all of these projects and targets today, but I want to take a look at 3 of them. And we'll begin with the Iglica project in the northeast. So the Iglica acquisition is an option for 100% ownership, the terms of which we believe are quite favorable. The property is located within the prolific Upper Cretaceous Porphyry Epithermal Belt, which hosts deposits like Dundee Precious Metals' Čelopeč mine and various other very large porphyry and epithermal deposits in southern Serbia as well. So this belt continues right through Bulgaria and Iglica is located within it.

22:22 We've defined several target areas for both copper porphyry and for gold epithermal deposits. Although we'll be focusing on the gold exploration as it fits well with our hub and spoke model. And so with that, we're gonna take a closer look at one of the targets within the Agleka property, which is called Vodun.

22:45 So this is an example of a grassroots project really, and it's got very high potential for drill success. The project has never been drilled historically, and Velocity began work just 2 months ago. We began with some soil sampling, which has taken place within the purple rectangular area and the soil sampling has identified anomalous areas over more than 1 kilometer strike length. Following up on that we collected approximately 50 rock samples. Each sample is 1 meter rock chip sample that aims to be as representative as possible for an outcrop sample and samples shown in red triangles returned greater than 0.2 grams per tonne gold. Most significantly the best 7 rock samples in this sample package range between 1.68g per tonne Gold and 12.25g per tonne Gold.

23:40 These grades are higher than grades that we've encountered at some of our more advanced projects to the south. We've also got visible gold in rock samples here. And we have not, we've not seen this in our other projects. For example, we've drilled 26,000 meters of drilling at Rosno and we've not recorded visible gold so far. So The presence of visible gold is significant and the presence of so many higher grade samples is also very significant. So with so much gold mineralization here and with visible gold in rock samples, this project is essentially drill ready and we expect to start drilling in the coming weeks.

24:22 Okay, so at the other end of the exploration spectrum, we've already been drilling at Obitnick for almost a year, and we've completed approximately 8,000 meters of drilling to date. At our Derusu zone, which is the upper of the 2 sections on this slide, drill results have been very positive with multiple high-grade intersections close to surface, such as 30.9 meters at 5.35 grams per tonne gold. Recent drilling that we've completed 400 metres to the west, which is shown in the lower section on the slide. This has expanded the overall mineralised footprint at Abitchnik. We've been intersecting significant near-surface mineralisation, and We have other targets aside from this one which is as yet untested.

25:11 Additionally, we have potential at Abyshnik for deeper porphyry-related mineralization. We've completed a lot of surface geochemistry, surface geophysical exploration, and we've identified an IP target, which we'll be testing with 1 or 2 deep drill holes during the remainder of 2020.

25:33 And finally, I want to mention our McDonnell C project. McDonnell C has had some historical drilling and an historical estimate has been completed on the project, so we know that there's gold mineralization here. The mineralization is are cropping to the west on the left hand side of the slide and disappears below a thin skin of unmineralized limestone to the east. But note that in the limited drilling that's taken place beneath the limestone, gold mineralization has been discovered. So we believe that the gold mineralization has potential to continue to the east underneath the limestones. Velocity's drill plan here will verify no mineralization and also do some testing undercover. We plan to drill about 2500 meters here before the end of the year.

26:26 So this is our management team. The company was founded by 4 mining professionals, being myself, Mark Cruz, Daniel Marinoff, and Stuart Mills. And as you can see, I don't want to go through all of the details here, but we've got a lot of technical, financial, and mine operating experience on the board. Our biggest single shareholder is Artemis Gold, and Stephen Dean recently joined the board as a director and as a nominee of Artemis.

26:58 And then just to mention the company structure a little bit, The company has several large shareholders, actually, we've got 23% with management, which means that the interests of management are very, very closely aligned with the interests of other shareholders. Artemis Gold, our biggest shareholder currently owns 22%, or 35% on a fully diluted basis. And finally, we have 15% sitting with a high net worth individual shareholder and a public float of approximately 40%. Beacon Securities covers the company with regular updates and we have notes and watch lists coming from various of the other institutions listed at the bottom right hand side of the slide and hopefully some of those institutions will increase and get us to a little bit more coverage, such as the coverage that we've been enjoying from Beacon.

27:59 So just to wrap up this portion of the presentation and before we get into questions and answers, I'd just like to kind of point out some of the things that you might want to think about when you think about velocity and potential outcomes for the company. You know, Bulgaria is a stable, low-cost EU jurisdiction in which to operate. We have multiple exploration projects from grassroots through to advanced pre-feasibility stage. The projects have potential to be developed through a hub-and-spoke development model, utilizing the existing CIL plant, and to produce gold dory. And the various projects considered together have potential to produce more than 200,000 ounces of gold per year, which means that velocity minerals as a company has potential scale and potentially significant cumulative value.

28:54 So with that I think we'll move on to the question and answer session. All right Keith, the first question it's sort of a combined question, 2 questions. How long is it expected to have an internal resource estimate to define enough economically mineable resource within the threshold of the 100,000 ounces for 10 years? And then it goes on. Did you hear or he heard there was a 200,000 ounce annual production in the plan and if it is that, what is the timeframe for the 200,000 ounces?

29:45 Yes, our plan ultimately is to try and get the project as a whole to that level of production. We publish reports on projects like Rosano, which are advanced engineering and exploration reports, but we think about the project in terms of all of the projects together. And Rosano as a project accounts for about a quarter of the capacity of the central processing plant, producing about 60,000 ounces per year. And so, you know, extending that calculation out, there's theoretically room for 3 more projects of the size and scale of Rosno, which would ultimately get you to potentially 200,000 ounces per year. The timescale on which we could achieve something like that is really dependent on drill results. But we've moved very, very quickly from our inception in 2017 through to today, which is about a three-year period. We've achieved a lot in Bulgaria. And the projects like Rosno, for example, we've drilled already 26,000 meters and got to pre-feasibility.

30:50 You know, something like a Bidgeneck, we've drilled 8,000 meters, we'll do another 4,000 meters before year-end and keep going from there. So it's really just a matter of how quickly we can get all this drilling done. We have fairly big plans in terms of drill testing and the purpose of all of this is just simply to provide the certainty on the resources of the other projects that will allow us to ultimately begin to look at these projects together and to see what the cumulative value is going to be. All right, Keith.

31:30 With global nationalism becoming more apparent in response to pressure on government tax revenues resulting from the pandemic, what risk is there that the Bulgarian government could nationalize the velocity mine operations and output? And a comment, it was a beautiful video. Oh, thank you. Yeah, we're really pleased with the video. The video was done by a by a Bulgarian production company and they they just did an absolutely fantastic job. We're really pleased with it and it In this pandemic situation it provides us with an opportunity to showcase the projects in a time when it's really difficult for people to travel. In terms of your question with respect to Bulgaria, there's no chance of such a thing happening.

32:18 We're working in Bulgaria which is a European Union country and therefore we enjoy the protections of being within the European Union. So nationalization of projects like this is just really not a possibility. And the permitting process and all of the administration that happens and is administered by Bulgaria is ultimately in line with everything that we expect to see coming out of Europe. All right. What are the critical activities affecting time to production?

33:01 Critical activities to get to production are twofold. They would fall into categories of things that we control and things that we don't necessarily control. So the things that we control are moving forward with our drilling, getting our work done, getting through our technical studies successfully, correctly scoping the project so that we have a project that's economically viable, that we can take through to permitting. Concurrent with all of that process, we're more or less continually in what I would call a permitting process and that covers off a variety of things you know we we began our baseline studies at the project 3 years ago in the same month that we started doing our exploration drilling which is an unusual approach but we really felt like rosna was a project that could go forward.

33:52 Through this entire time, other things that are not necessarily in our control, we've been working very difficult or very, very carefully on. I suppose the things that I would point to in particular are stakeholder engagement and community engagement, getting the support of the community, making sure that people living in the region are making sure they want the project to happen, making sure that that velocity as a company works well within the community. So we engage with the community. We have a joint venture company together with Kurupsu and we engage with the community very, very regularly. We've put a lot of initiatives in place and I wouldn't really have time to address all of those, but just for an example, we recently signed an agreement between the joint venture company and the university in Sofia, which is in particular the mining department.

34:49 And we're looking at identifying potential students within the local area that will be able to attend the university, ultimately, hopefully qualify as geologists and mining engineers, so that as the project moves forward and gets into production those people will be able to participate in the project as professionals. So these are the things that impact permitting. On the technical side I'm confident that we can do it. On the community side I'm confident that we've got a great deal of support from the community and we're very grateful for that and we appreciate the opportunity to work as partners with the community. All right another question here Keith. In Bulgaria is the mine permitting process similar to what they have in the USA, where the US government manages public lands through the BLM and the mining companies apply for mining permits and environmental permits, Or does Velocity own the mining sites privately?

35:55 No, it's not specifically like the US. There are state-owned lands in the country, for sure. For example, at Rosano, a great deal of the property, the surface rights are held by the State Forestry Commission. But that doesn't have the same, that wouldn't raise the same levels of concerns as it might do on a US project, as I'm led to believe. In the case of Bulgaria, we work with the government through our permitting and our EIA process, we ultimately get issued with a mining concession. And with that concession, surface rights owned by the states are more or less automatically fed through and we're able to work on those surface rights. So it's not a similar process, and it's not something that would be concerning as it might be in the US.

37:00 All right. I have another question. It's two-part again. When will you release the resource estimates for Bichnik and the other deposits where you've done a lot of drilling? Are you able to give a sense as to the resource potential at Abitchnik and the other department. So when will you be able to release them and a sense of the resource potential? Okay. First resource that we will release in Abitchnik is going to be before Christmas. Probably similar for Macedonsey, although that may kind of move into January or February, but around that kind of end of year time.

37:48 So those are 2 that we want to get out there. Those will be initial resources. They won't by any means be final resources, but we want to start giving people a sense that there are resources there and that as we continue to drill, those can be expanded. The sense of the potential for all of the projects is a little more difficult to answer, but I'll try and speak to a few of the projects individually. At Rosanoe, we've got a resource behind the reserve, which is about 570,000oz. I showed you a slide of some of the near Rossignol potential targets that we're drilling where we're already discovering some gold. Ultimately, the upside there for me is potentially there could be another Rossino hiding in there.

38:38 And if that's not the case, then hopefully we can identify something of the order of 150,000,200,000 ounces. The key driver for Rossino specifically would be to extend the mine life from the current 7 years to something around 10 years, which is generally a little easier to finance in terms of secure lenders. When we think about the other projects, You know, the baseline really for me is that they all have to have something minimally, something equivalent to Rossnow or else they won't work. And if they do have something like, well, we believe that there's that potential there or else we wouldn't be exploring there at all is the simplest way to put it. When we think about our biggest shareholder Artemis, you know, the management team at Artemis remain significant shareholders, they remain on the board and they believe that there's great potential for these projects to cumulatively come together into a very significant project. I know that the target for the management team at Artemis is something in the range of 2 to 3 million ounces.

39:47 All right, Keith. Does the partner contribute, sorry, does the partner contribute funds for the funds for the exploration and development? Yes, indeed they do. So, at each of our projects we begin with an option agreement where we've got an option to earn 70%. And during that period, when we're earning that interest, we pay for everything 100%. And in the case of Rosano, I think that took approximately 2 years or a year and a half maybe. Once we exercise the option, we enter into a joint venture, which is 70-30 and Kurubzu, our partner holding 30%, they contribute 30% of all costs from that point onwards. So month by month, 30% of the costs are covered by our partner and that covers any additional exploration, development, every single cost that the project will incur from that point there on.

40:47 All right. What is the status of the mining permit? There isn't 1. So using Rosano as an example, it's a prospecting and exploration license. A prospecting and exploration license in Bulgaria is, it's a little bit like a claim in Canada, but with some differences because in the process of being awarded an exploration license, The Bulgarian government actually does a lot of work and the prospecting license and the contract with the company gets reviewed by all departments of the government. It ultimately gets signed off by the cabinet essentially and by the prime minister. So there's a very, very detailed review process at that point.

41:38 So when you have a prospecting and exploration license, you've been through a lot of the things that you might expect to go through in other countries at a later date. What that really means is that for in Bulgaria specifically, there's a very clear line of sight between a prospecting license and a mining concession. And it's much more of a process that you expect to get through rather than a very large process that would be carrying risk, I guess. So it's probably a better process than some of the other countries I've worked in. Okay, Keith, can you talk about how Velocity initially got involved as a company in Bulgaria and why you chose to focus on Bulgaria for exploration?

42:27 Yes sure, so The 4 of us that founded the company had been looking for an opportunity of this kind. And through a long-standing personal relationship with Gerupsu, we were introduced to the opportunity and to Gerupsu as a potential partner. Working in Bulgaria and having Gerupsu as a partner seemed like the right combination to us. It gave us access to the central processing plant, which is a key driver. It's a really big strategic advantage as it's the only plant of its kind in Bulgaria. More than anything, the existence of the plant mitigates against delays that you might experience if you had to build and permit a plant of this kind yourself.

43:13 We like Bulgaria as a country. As I mentioned in the presentation and in some of the questions, it's an EU country. The mining law is competitive. I mean competitive globally relative to other countries. And you know the workforce and the well-educated population, the existence of mining professionals is all very important. Access to the other projects was also key. You know, I mentioned just now that a prospecting license goes through quite a detailed review at the beginning. And for that reason, it can take some time to apply for and acquire exploration properties in Bulgaria. So having access to Rosano and to other option properties through Gerubsu was a key driver as well, because it allowed us to enter the country and immediately start drilling.

44:00 The option properties have all had various amounts of historical work completed on them. And that was also a factor. In most cases, there are historical estimates existing which means that we are not generally looking at really grassroots work. And as a result of kind of drilling more advanced projects our success rate is quite a bit better than exploration companies that might have been working on earlier stage projects. And finally I suppose the thing that we liked was that the belt because it was historically a base metal producing belt, the gold potential was known, but it was, it was, there'd been very little gold exploration actually completed. And so the opportunities for discovery of additional gold resources on the projects that we have and other projects that we might be acquiring is pretty significant.

44:57 All right. At Rossino, Can you talk about the local community and stakeholder engagement? I think I've done that to some extent with one of the previous questions. I think stakeholder engagement is probably the most important thing, being in a sense one of the factors that you don't necessarily control 100%. So yeah we've been, as I mentioned I think, we've been busily engaging with the municipality, engaging with local stakeholders. We've got good support from the local mayor and all of these things are very critical. The kind of projects that we're undertaking, like the university education program that I mentioned previously, are very important. And we've got more projects on the go, such as recycling projects that we've initiated, building recycling capacity in the town. And we have other projects on the way, which we'll be able to talk about in due course once we get them started.

46:05 All right. Let's see. Could you clarify when IGLIKA drilling will exactly start and when we're likely to hear some results, please. I cannot clarify that precisely, but we're working on getting the necessary permissions that you need when you enter a new area like this and beginning with some stakeholder engagement and things like that to introduce the company and introduce what we're doing so that everyone understands the process. Obviously, early stage exploration is risky and it's not a mining project. So we just need everyone to understand that. We'll get through this permitting process And as soon as possible, we'll start drilling. So that's not materially different from any of the other projects we've worked on. It's just when you newly acquire a project, it's a bit of a process to get started. And then once you do, you just continue with the exploration. So we'll get started as quickly as we can. Certainly we would intend to drill here before the year end.

47:11 There's another question here. Your all in sustaining cost is low. Are there any byproduct credits included in the estimate? No, there are not. We do have some silver at Rosneau. It's not a lot. It's a 1 to 1 ratio with gold, but that silver will ultimately report to the dore that we produce. So as we get to the feasibility study, we'll look carefully at that silver and we'll include it. You're correct, the all-in sustaining cost is low. In a global sense, it's lower quartile, which is where we want to be. You know, in a sense, it's also got some level of conservatism built in. If you look next door to Dundee Precious Metals, Krimovgrad Project, which has been operating for a little over a year.

48:03 They're all in sustaining costs. In the middle of this year, we're about $660 per ounce, I believe. And we have allowed for up to 755. But as we get through more detailed studies and into feasibility, we'll be able to hopefully pin down that operating cost a little more accurately. And I have one last question here. How are things with Artemis? How are things with Artemis? Things are very good with Artemis. We've had a good relationship with the management team from the time that they were involved with Atlantic. We were pleased to see their successes at Atlantic, selling the company for $800 million cash in the middle of 2019 was an impressive achievement.

48:53 And the similarities of that project, albeit that it was in production, but the similarities with what we're trying to achieve here are very obvious, I think. Since forming Artemis and now as shareholders through Artemis, the same management team is there. Stephen Dean recently joined the board and has a great level of interest. He believes there's a great deal of potential at the project. And as I mentioned, you know, they're, they're looking for potential of the scale of 2 to 3 million ounces cumulatively. And those are the kinds of things we want to see too, but it's, we're only going to get there through an aggressive drill program like the one that we've been doing and what we'll be doing over the coming months. So if that's the last question, Joyce.

49:43 Yes, I think we've dealt with all the issues in the questions. Thanks Keith. Okay then we'll finish off there. I'd like to thank everyone for registering, for attending and for listening. If you've got additional questions you know get on to our website you'll find the phone numbers or anything that you need to reach out to the company or if you prefer, just send an email to info at velocity minerals.com and we'll get back to you in due course. But thank you very much indeed for your attention and for listening in.