Observations and takeaways from a visit to the company's Bulgaria properties are given in a Haywood report.
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.
Disclosure:
1) Doresa Banning 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) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) 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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Velocity Minerals, a company mentioned in this article.
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.
Research policy is available here.