December 10 (SeeNews) - Canadian mineral exploration and development company Velocity Minerals said on Monday that it has identified three new drill targets through soil sampling at its Rozino gold project, located in Bulgaria.
"Soil sampling results have defined three new high priority drill targets located adjacent to the pits outlined in the Rozino Preliminary Economic Assessment," Keith Henderson, Velocity’s president and CEO, said in a statement.
Velocity intends to test at least one the new targets before the end of the year, if there is a possibility to quickly create road access to the new area.
The area was previously tested by a single vertical drill hole completed by the Bulgarian state during the 1980’s.
"This historical drill hole was collared in what we can now see is a geochemically dead zone located between three very compelling soil anomalies," Henderson said.
Earlier this month, Velocity said that it plans to complete 12 to 14 drill holes before the end of December, the first of which will test for depth extensions of mineralization intersected in recent trench sampling. The remaining part of the drill programme is still subject to possible changes, as the company is waiting for results from additional trenching and a new soil sampling grid, the company said at the time.
First drill results are expected in late December or early January.
Last month, Velocity Minerals exercised its option to acquire a 70% interest in the Rozino gold project from Bulgaria's Gorubso-Kardzhali through delivery of a Preliminary Economic Assessment (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)