Under the option agreement, Velocity will receive a 70% interest in the Momchil property, which includes the Obichnik gold project.
Gold exploration and development company Velocity Minerals has signed an option agreement with Bulgarian partner Gorubso Kardzhali to acquire a 70% interest in the Momchil property.
Velocity said that the Momchil property includes the Obichnik gold project, which has been registered on the Bulgarian State balance as a geological resource.
Obichnik gold project
The project is located in southeast Bulgaria, approximately 25km by road from Gorubso’s modern CIL processing plant.
Under the terms of the option agreement, Velocity is entitled to receive a 70% interest in the 388-hectare property, by delivering a mineral resource estimate prepared under National Instrument (NI) 43-101.
The company said that the deposit is open for expansion and requires systematic exploration to investigate the full potential and deliver a mineral resource estimate prepared under NI 43-101.
In addition, the resource is based on historical exploration, including approximately 32 drill holes and 137 trenches completed by companies Geoengineering and Gorubso.
Velocity said that between 1970 and 1971, the State company completed the initial geological mapping and soil geochemistry, followed by the Geoengineering, which completed the historical work, including geological mapping, soil geochemistry, 133 trenches, and 24 diamond drill holes.
Between 2003 and 2010, Gorubso completed geological mapping, 3 trenches (294m), 8 diamond drill holes for 1,017m, and a Historical Resource estimation for the Obichnik.
The initial work at the project is focused on surface soil geochemistry and a ground magnetic survey, while the company has completed both, collecting a total of 525 soil samples and a 29km line of magnetic data.
Along with the geochemistry and geophysics, the company also intends to assess the reliability of historical drill results with angled heel-to-toe drilling across mineralized zones along with isolated exploration drill tests.
Velocity, in a statement, said: “The aim of the drill campaign is to verify mineralization as well as increase understanding of geometry, continuity of mineralization, and geotechnical and hydrogeological aspects of the deposit.”