Velocity Exercises Option to Acquire 70% Interest at the Obichnik Gold Project, Bulgaria

VANCOUVER, British Columbia, June 23, 2021 (GLOBE NEWSWIRE) -- Velocity Minerals Ltd. (TSXV: VLC) (“Velocity” or the “Company”) announces that it has delivered notice of option exercise (the “Exercise Notice”) to Gorubso-Kardzhali AD (“Gorubso”) for the Momchil property (the “Property”), which includes the Obichnik gold project (“Obichnik” or the “Project”). To fulfill the terms of the option agreement with Gorubso, Velocity was required to deliver a Mineral Resource estimate prepared in accordance with National Instrument 43-101 (“NI 43-101”) and an Environment Impact Assessment prepared in accordance with Chapter Six of the Bulgarian Environmental Protection Act.

Following delivery of the Exercise Notice, Velocity is deemed to have earned a 70% interest in the Property and to be in Joint Venture with Gorubso for the further development of the Property.

Obichnik Gold Deposit

Gold mineralization at Obichnik was the subject of an initial mineral resource estimate of 4.4 Mt grading 1.1 g/t gold for 156,000 ounces, at 0.3 g/t gold cut-off grade (see previous news release NR-21-04, March 16, 2021). Mineralization is near surface, with 80% of estimated resources located within 120m. The mineralized system remains open for expansion.

A NI 43-101 Technical Report was filed on SEDAR entitled “NI 43-101 Technical Report Exploration and Mineral Resource Estimation for the Obichnik Property, Republic of Bulgaria,” dated March 20, 2021 (effective date February 11, 2021). The Technical Report was written by Jonathon Abbott an independent Qualified Person as defined by National Instrument 43-101 Standards of Disclosure. The Report is available on SEDAR under the Company’s profile and on the Company’s web site.

Corporate Update

All resolutions set out in the Company’s notice of meeting and information circular were passed by shareholders at the annual general meeting held on June 22, 2021. The following incumbent directors were re-elected: Keith Henderson, Daniel Marinov, Mark Cruise, Michael Hoffman and Steven Dean. The shareholders re-appointed Davidson & Company LLP, Chartered Professional Accountants as auditors of the Company for the ensuing year and approved the Company’s 10% rolling stock option plan. The stock option plan is subject to annual TSX Venture Exchange acceptance.