Velocity Minerals has signed an option agreement with Gorubso Kardzhali to acquire a 70% interest in the 388ha Momchil property in south-east Bulgaria.
This property also includes the Obichnik gold deposit, which is a geological resource located in southeast Bulgaria. It is approximately 25km by road from Gorubso’s modern CIL processing plant.
Under the option agreement, Velocity needs to submit a NI 43-101 resource estimate to earn its stake.
Registered with the Ministry of Energy in Bulgaria, the resource is based on historical exploration, which includes 32 drill holes (4,800m) and 137 trenches. The exploration was completed by Geoengineering and Gorubso.
According to Velocity, the deposit is open for expansion and requires systematic exploration to understand its full potential for open-pit resources.
The company is currently awaiting results from a ground magnetic survey and surface soil geochemistry. It has collected 525 soil samples and 29-line kilometres of magnetic surveying for the tests.
The company also plans to assess the reliability of historical drill results from Momchil property. The results will be assessed by conducting angled heel-to-toe drilling across mineralised zones and isolated exploration drill tests.
The drilling campaign aims to verify the continuity of mineralisation, geotechnical, and hydrogeological features of the deposit.
Last month, Velocity signed another option agreement with Gorubso Kardzhali, thereby enabling the latter to earn a 70% stake in the 194ha Nadezhda property in southeast Bulgaria, which includes the Makedontsi gold project.
Velocity Minerals is a Canadian gold exploration and development company while Gorubso Kardzhali is a Bulgarian metal ore mining company.