Zlatusha Project Highlights
Large, under-explored property, located in a highly prospective copper-gold mineral belt
Potential for epithermal gold, porphyry copper-gold, and skarn deposits
A total of seven known mineral occurrences for initial follow-up exploration
Historical drilling totals 52 drill holes (~10,000m) with partial geochemical coverage
Drilling highlights at Zlatusha Prospect include 11m grading 3.63 g/t gold (at surface)
'Acquisition of the Zlatusha prospecting license has been a high priority for Velocity in recent months.,' stated
Regional Setting
The Zlatusha prospecting license is located within a Tier One porphyry copper-gold and epithermal belt, in the Western Srednogorie segment of the Upper Cretaceous magmatic arc (Figure 1), which transects
Property Details
Velocity's due diligence identified several magmatic-hydrothermal centers with outcropping copper-gold mineralization hosted in rocks of favourable upper Cretaceous age and composition. In total, the Property hosts seven historically defined porphyry, epithermal and skarn prospects, including advanced prospects with historical drilling. No modern systematic exploration has been carried out and the Company considers the Property prospective for discovery of additional deposits.
Within Zlatusha, an occurrence of the same name (the 'Zlatusha Prospect') is considered a high priority for Velocity with 11 historical drill holes having been completed for almost 1,800m. Highlights include 11m grading 3.63 g/t gold (at surface) and 11m grading 4.33 g/t gold (at 109m below surface). Broader zones of disseminated gold mineralization have also been reported. Drill results from the Zlatusha Prospect are historical in nature and Velocity has not completed any check-sampling to verify historical drill results. The inclusion of historical drill results provides information as to the potential grade and nature of the immediate exploration targets within the Zlatusha Prospect.
Velocity geologists completed sampling outcrops for due diligence purposes. Laboratory results returned gold grades ranging from 0.95 g/t to 1.55 g/t gold and from 130 to 759ppm copper from Zlatusha Prospect. These results are consistent with historical rock chip samples collected from the Zlatusha Prospect that range from 0.55g/t to 1.32 g/t gold and from 97 ppm to 549 ppm copper.
Velocity's reconnaissance geological mapping indicated multiple porphyry-related alteration zones, characterized by intense quartz-sericite-pyrite alteration and associated biotite altered diorite porphyry typically indicative of large / well developed, potentially productive porphyry systems. Areas of alteration up to 2,000m x 1,000m are characterized by advanced argillic (quartz-alunite high-sulphidation telescoping), quartz-sericite-pyrite, and chlorite alteration, all of which suggests preservation of the entire magmatic-hydrothermal system(s). Historic sampling reported up to 1.97g/t gold and 779ppm copper. The Zlatusha Prospect is partly defined by a 600m x 400m (>100ppb) gold-in-soil anomaly, which remains open and untested. Outcrops of quartz vein stockwork with chalcopyrite mineralization cutting biotite altered diorite porphyry have also been identified in the field.
Planned Drilling
Surface exploration and geophysical surveys will commence as soon as possible, with a view to initiating drill testing in Q2 2023. Drilling will initially focus on the priority Zlatusha Prospect, where interpretation of historical drilling indicates potential for additional mineralization. Assessment of six other existing prospects will be undertaken concurrently for expected drill testing to commence in Q3 2023.
Velocity will be under no obligation to fulfill any of the First Option Earn-In Requirements or Second Option Earn-In Requirements, all of which will be at the sole discretion of Velocity. If Velocity exercises the First Option, but chooses not to exercise the Second Option, Velocity and Raiden will be deemed to have formed a joint venture ('Joint Venture') with Velocity initially owning 51% and Raiden owning 49%. If Velocity exercises the First Option and the Second Option, Velocity and Raiden will be deemed to have formed a Joint Venture with Velocity initially owning 75% and Raiden owning 25%. If a participant's participating interest in the Joint Venture falls below 15%, that participant will transfer its participating interest to the other participant in exchange for the grant of an ongoing royalty to be paid at 1% of net smelter returns (the '1% NSR Royalty'). The participant with the largest participating interest in the Joint Venture will have the right, but not the obligation, exercisable at any time prior to a production decision to purchase half of the 1% NSR Royalty (being 0.5%) for the sum of
The Property is subject to an existing 2% net smelter royalty held by
Pursuant to the terms of the Letter Agreement, the Velocity and Raiden will negotiate in good faith toward the execution and delivery of a definitive property option agreement (the 'Definitive Agreement'), which will incorporate the terms and conditions of the Letter Agreement and such other terms and conditions as may be agreed to by the parties. During the term of the Letter Agreement, and if applicable the Definitive Agreement, if either Velocity or Raiden acquires an interest in a property (the 'Additional Property') located within or partially within the Property or a 5 km area of interest extending from the outermost exterior boundaries of the Property, the non-acquiring party may elect that such Additional Property be included in the Property, in which case the non-acquiring party would be required to reimburse the acquiring party upon the exercise of the later of the First Option or the Second Option, as applicable, as to 51% (75% after the exercise of the Second Option by Velocity) of the acquisition costs, if the non-acquiring party is Velocity; or 49% (25% after the exercise of the Second Option by Velocity) of the acquisition costs, if the non-acquiring party is Raiden.
Quality Assurance / Quality Control
The work programs were designed and supervised by
Qualified Person
The technical content of this release has been approved for disclosure by
About
Velocity is a precious metals and copper explorer focused in
Contact:
T: +1-604-484-1233
E-mail: info@velocityminerals.com
Web: www.velocityminerals.com
Neither the
This news release contains forward-looking statements and forward-looking information (collectively, 'forward-looking statements') within the meaning of applicable Canadian and
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Such risks and other factors include, among others, operating and technical difficulties in connection with mineral exploration and development and mine development activities at the Property, the fact that the Company's interest in the Property is an option only and there is no guarantee that such interest, if earned, will be certain, estimation or realization of mineral reserves and mineral resources, requirements for additional capital, future prices of precious metals and copper, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, possible variations in ore grade or recovery rates, possible failures of plants, equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, delays or the inability of the Company to obtain any necessary permits, consents or authorizations required, including
(C) 2023 Electronic News Publishing, source