January 8 (SeeNews) - Canadian mineral exploration and development company Velocity Minerals said on Tuesday that it has received positive drill results from several holes located outside the zone included in the Preliminary Economic Assessment (PEA) of the Rozino gold project in Bulgaria.
"The addition of near-surface gold intersections in several drill holes potentially expands the mineralized envelope at Rozino and is of additional importance as the mineralized drill intersections correspond closely with mineralization intersected in recent surface trenching at Rozino," Velocity Minerals said in a statement.
Highlights include 29.7m from surface grading 1.17g/t gold, the company noted.
"We believe that the project has strong growth potential and drill targets aim to expand mineralization beyond the existing resources," Keith Henderson, Velocity’s president and CEO, said.
In November 2018, Velocity Minerals exercised its option to acquire a 70% interest in the Rozino gold project from Bulgaria's Gorubso-Kardzhali through delivery of a PEA.
In September, Velocity announced that it has completed a PEA on the Rozino project, envisaging an after-tax internal rate of return (IRR) of 33.1% and an after-tax NPV5% of $129 million (110 million euro).
The PEA estimates steady state annual gold production of 65,000 ounces and peak annual output of 78,000 ounces. Capital costs are seen and $97.6 million, while sustaining capital is expected to amount to $6.3 million.
($ = 0.8554 euro)