Velocity Minerals (VLC.V) has signed an agreement with a third party to acquire full ownership of the Toledo gold-silver project in Western Bulgaria. The project has a historical resource estimate of just over 500,000 ounces of gold, based on the assay results of 27,500 meters of drilling in 185 holes. The resource combined the six known zones for a total of 16.05 million tonnes with an average grade of in excess of 1 g/t gold with some of the smaller zones even grading 1.3 and 1.4 g/t gold. Three of the zones also contain an attractive silver component, and the total amount of silver contained in the resource is approximately 8 million ounces.
As part of the agreement, Velocity Minerals is committing to pay a total of US$4M in cash based on a well-defined schedule (shown below).
Some of the historical drill intervals had some pretty impressive grades for an open pit project with for instance 87 meters containing 2.14 g/t gold, almost 81 meters containing 3.52 g/t gold and just over 25 meters containing 4.1 g/t gold, with the latter two starting at surface and the first thick interval starting at just 2 meters down hole.
This looks like an interesting project to add to the company’s portfolio. The grade seems fine, but unfortunately Velocity did not provide any details on the expected metallurgy so we hope to see some details on that too as part of the company’s plan to further advance the asset.
Disclosure: The author has a long position in Velocity Minerals. Please read the disclaimer.
