Resource Maven Gwen Preston announced over the weekend she'd be purchasing stock in Velocity Minerals Ltd. (VLC:TSX.V) at market open today (Aug. 21). She anticipated positive drill results from the company's first holes at the Rozino project, located within the Tintyava prospecting and exploration license in southeast Bulgaria.
Velocity delivered. In this morning's press release, the company announced results for two holes of "74 meters @ 2.35g/t gold including 39 meters @ 4.11 g/t gold." The company's president and CEO, Keith Henderson, called the results "among the best grades ever returned from the project and the drill holes clearly demonstrate the potential for thick, high-grade gold mineralization between the historical drill fences."
Upon release of the results, Velocity stock jumped as much as 74%, from a previous close of $0.27 per share to $0.47 per share before settling to close at $0.34 per share.
The diamond drill holes are a part of a larger, 12,000-meter drill program of up to 65 holes, and follow on historic drilling at the site, as described in this Streetwise Reports article. The Rozino project is located about 20 km from Ada Tepa, which is being developed by Dundee Precious Metals.
Peter Epstein of Epstein Resources is also watching Velocity Minerals. "Gold junior Velocity Minerals has the right team in the right place at the right time," Epstein told Streetwise Reports. "Its Eastern Europe focus is off the beaten path, but the world-class management team has pulled together two highly prospective gold projects in southeastern Bulgaria that have near-term catalysts and tremendous blue-sky potential."
Epstein went on the say that, with the "robust" drill program expected to continue into 2018, "Management has taken prudent steps to maximize its chances of success. It 1) partnered with a prominent regional gold producer (only company with a cyanide operating permit); 2) established a strong technical & permitting team; and 3) signed a valuable 12-month exclusive option on an operating mine."
Preston's investment thesis for Velocity is "two-pronged." First, the expert notes that stock available for free trade following the company's reverse takeover of a privately held company in late July is limited. Second, Preston believes Velocity could become a producting miner in short order.
"The concept here is that Velocity is partnered with a Bulgarian mining company called Gorubso Kardzhali," Preston wrote. "Gorubso has been producing on a small scale from its Chala gold mine for ten years but a potential partnership with Velocity could see production ramp up."
Velocity is also exploring Ekuzya, a prospective property adjacent to Chala. "Any gold discovered here would likely feed the Chala facility, which means it could become operational with limited capital and with little or no permitting, as it is officially part of Gorubso’s mine concession," Preston stated.
Finally, Preston noted that "Recent success in this part of the world (Mariana's high-grade success at Hot Maden in Turkey and Reservoir Minerals high-grade Timok discovery in Serbia, which led to takeovers by Sandstorm Gold Ltd. and Nevsun Resources, respectively) have the market attuned to the potential for discoveries in the region. If Velocity pulls a result like that from the only previous hole drilled to the northeast—68 metres of 3.15 g/t gold—the market will notice."
Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
1) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: none. She or members of her household are paid by the following companies mentioned in this article: none.
2) Velocity Minerals is an advertiser on http://EpsteinResearch.com. Peter Epstein, CFA of Epstein Research, owns shares and/or stock options in the company.
3) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Velocity Minerals Ltd., a company mentioned in this article.
DISCLAIMER: The information in this publication is not intended to be, nor shall constitute, an offer to sell or solicit any offer to buy any security. The information presented on this website is subject to change without notice, and neither Resource Maven (Maven) nor its affiliates assume any responsibility to update this information. Maven is not registered as a securities broker-dealer or an investment adviser in any jurisdiction. Additionally, it is not intended to be a complete description of the securities, markets, or developments referred to in the material. Maven cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. Additionally, Maven in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned. Furthermore, Maven accepts no liability whatsoever for any direct or consequential loss arising from any use of our product, website, or other content. The reader bears responsibility for his/her own investment research and decisions and should seek the advice of a qualified investment advisor and investigate and fully understand any and all risks before investing. Information and statistical data contained in this website were obtained or derived from sources believed to be reliable. However, Maven does not represent that any such information, opinion or statistical data is accurate or complete and should not be relied upon as such. This publication may provide addresses of, or contain hyperlinks to, Internet websites. Maven has not reviewed the Internet website of any third party and takes no responsibility for the contents thereof. Each such address or hyperlink is provided solely for the convenience and information of this website's users, and the content of linked third-party websites is not in any way incorporated into this website. Those who choose to access such third- party websites or follow such hyperlinks do so at their own risk. The publisher, owner, writer or their affiliates may own securities of or may have participated in the financings of some or all of the companies mentioned in this publication.