Gold Explorer and Developer 'On Track to Repeat Atlantic Gold Success'

In an Aug. 21 research note, Haywood analyst Mick Carew reported that Velocity Minerals Ltd. (VLC:TSX.V; VLCJF:OTCQB) is "is on track to repeat Atlantic Gold success" with its array of Bulgaria properties. The explorer would achieve this, he added, "through the development of several at/near surface epithermal gold deposits proximal to a carbon-in-leach (CIL) processing plant owned by joint venture partner Gorubso Kardzhali," the only such facility in the country.

Carew provided the highlights from his recent site visit to Velocity's exploration projects in Bulgaria. Velocity's partnership with Gorubso is key, he pointed out. It is advantageous in terms of permitting and future capex requirements but potentially "invaluable for both government and local community relationships as well," he wrote. The alliance covers all existing and future Velocity-Gorubso projects within a 10,400 square kilometer area around the CIL plant.

Of the many projects the two companies co-own, Rozino (Velocity owns 70%) is "a potential near-term producer," noted Carew. It is the most advanced, having an NI 43-101 compliant resource of 573,000 ounces of gold grading 1.37 grams per ton. Rozino is located about 83 kilometers from Gorubso's plant. Drilling, up to 14,000 meters' worth, is underway at Rozino and expected to be completed this month.

Carew highlighted that Velocity is led by an experienced management team, with Keith Henderson as the CEO, Stuart Mills the vice president of exploration and Mark Cruise, director and co-founder of Trevali Mining, a board member.

Another advantage Velocity has, the analyst wrote, is a robust project portfolio offering flexibility and optionality. It encompasses Obichnik, where 6,000 meters are currently being drilled, Sedefche, for which a reverse circulation drill program is planned, and Makedontsi.

Looking forward, Velocity will continue exploring its properties and delivering drilling updates.

Haywood does not cover Velocity so it does not have a rating or a price target on it. Velocity shares are now trading at around CA$0.47.

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Disclosures from Haywood Securities, Velocity Minerals Ltd., Uncovered Radar Flash, August 21, 2019

Analyst Certification: I, Mick Carew, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures
Of the companies included in the report the following Important Disclosures apply:
▪The Analyst(s) preparing this report (or a member of the Analysts' households) have a financial interest in Marathon Gold Corp. (MOZ-T), Pure Gold Mining Inc. (PGM-V).
▪ As of the end of the month immediately preceding this publication either Haywood Securities, Inc., one of its subsidiaries, its officers or directors beneficially owned 1% or more of Velocity Minerals Ltd. (VLC-V).
▪ Haywood Securities Inc. or an Affiliate has received compensation for investment banking services from Velocity Minerals Ltd. (VLC-V) in the past 12 months.
Other material conflict of interest of the research analyst of which the research analyst or Haywood Securities Inc. knows or has reason to know at the time of publication or at the time of public appearance: n/a.

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