Name of the Project
Rozino gold project.

Location
Rozino is located within the Tintyava prospect-ing licence area, in south-east Bulgaria.

Client
Upon delivery of the preliminary economic assessment (PEA), a joint venture will be deemed to have been formed between Velocity (70%) and Gorubso (30%).

Project Description
A PEA has provided a base case assessment of developing the project using openpit mining and gold recovery through a combination of on-site preconcentration in a flotation plant and further processing in an existing operating carbon-in-leach (CIL) plant.

Mining of the Rozino deposit will follow a conventional drill-and-blast, load-and-haul opencut mining operation using contractor mining services.

Mining will ramp-up to a maximum 6.8-million tonnes a year. The steady-state feed rate to the flotation plant is 1.75-million tonnes a year delivered by haul truck. The mining operation will require a fleet of 90 t class excavators loading blasted and free-dig material into 45 t class articulated dump trucks. The planned mining operation will be supported by a fleet of ancillary equipment, including graders, dozers, bowsers, drill rigs and other support equipment. The mining costs also include grade-control drilling, pit dewatering and monthly management fees.

The project will process 1.75-million tonnes a year through a conventional crushing, milling and flotation processing facility located at the Rozino mine site, with a life-of-mine (LoM) average grade of 1.5 g/t gold to produce
436 000 t of dry concentrate at 30 g/t gold, with a mass pull of about 4.5% by weight.

The Rozino mineralisation contains less than 1% total sulphides, of which 98% is expected to be recovered in the flotation circuit resulting in very low-sulphide tailings, with no deleterious elements that will be deposited in a tailings impoundment located to the south of the flotation plant. A waste rock and water storage dam will be located in the same catchment area to minimise the environmental footprint.

The resulting low-volume concentrate will be trucked 85 km on existing roads to the currently operating CIL plant. A fleet of standard on-highway 20 t class trucks will transport the concentrate.

New concentrate handling facilities will be built at the CIL plant and will feed a reconstituted slurry directly into a conventional CIL circuit, elution and electrowinning facility to produce saleable gold doré.

A total of 365 000 oz of gold doré will be produced as saleable gold product over the LoM. The tailings from the CIL plant will be deposited in the existing and fully permitted tailings management facility.

The steady-state average doré production is estimated at 65 000 oz/y and peak production of 75 000 oz/y.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The PEA financial model returns an after-tax net present value, at a 5% discount rate, of $129-million and an internal rate of return of 33.1%.

Value
Total capital costs are estimated at $97.6-million, including contingency.

Duration
Mining will start in 2022.

Latest Developments
The next steps for the project include the completion of a prefeasibility study, which is expected to be completed in the third quarter of 2019.

Key Contracts and Suppliers
CSA Global (PEA).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Velocity Minerals, tel +1 604 484 1233 or email info@velocityminerals.com.