The Gold Report - Thu, Jan 11, 2018

Gold in Bulgaria? Drilling Says 'Yes'

It's been full speed ahead for this TSX.V-listed gold explorer in Bulgaria, and the drill bit is showing results.

Drill rig at Rozino

Velocity Minerals Ltd. (VLC:TSX.V) began drilling its Rozino gold project in southeastern Bulgaria in August, and has now drilled more than 7,000 meters. The company's most recently released drill results show diamond drill hole RDD-040 returning "144.7m grading 1.52g/t gold, including 24.0m grading 4.05 g/t gold."

"This is the thickest continuous drill intersection ever returned from the property averaging greater than 1.0g/t gold," the company noted. Assay results have expanded the near-surface mineralization beyond the Main Zone to the East and North Zones.

"Velocity's shares look set to turn higher soon." — Clive Maund

Keith Henderson, Velocity's president and CEO, stated, "Exploration at East Zone has been particularly successful with hole RDD-040 intersecting continuous high-grade gold mineralization from surface over a 144-meter drill intersection. The most recently completed drilling at Rozino has stepped beyond Main Zone, seeking to define additional zones of near-surface mineralization at North Zone and East Zone."

Henderson also noted that "since closing the acquisition of Bulgarian assets in late July 2017, Velocity has rapidly advanced the project and based on positive results added a second rig in October to complete more than 7,000m in total. Our stated aim has been to define potentially open-pittable epithermal gold mineralization and the program has clearly met that objective."

The Rozino project is located about 20 kilometers from Ada Tepa, which Dundee Precious Metals is developing.

"With 7,000m of drilling completed, we anticipate conducting another 7,000 to 10,000m of drilling, which will enable us to release a preliminary economic assessment (PEA). Our option agreement grants us 70% of the project upon delivery of the PEA, which we hope to complete by late summer," Henderson told Streetwise Reports.

"Velocity closed a successful financing at the end of September." — Clive Maund

"We are delivering on what we've said we were going to do," Henderson said. "We've drilled and have gotten really good results. The results at Rozino point to near-surface gold mineralization, which makes the project potentially open-pittable. We will continue to release drill results as we receive them."

Technical analyst Clive Maund charted Velocity Minerals on CliveMaund.com on Jan. 10 and noted "the stock looks cheap here, as it looks set to reverse to the upside soon." Another positive factor to take into consideration, Maund stated, "is that the company closed a successful financing at the end of September, making it less likely that there will be another one soon."

Maund concluded that "Velocity Minerals is close to a cyclical low and looks set to turn higher soon." The stock, he said, is 'completely 'off the radar' so the emphasis is on quiet accumulation without the expectation that it will go roaring up 2 days after we buy it. Nevertheless, once the trend reverses it could make good percentage gains from here."

Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click below for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Velocity Minerals.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Velocity Minerals, a company mentioned in this article.

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