Several companies started the week with announcements detailing gold exploration programs, but none seemed to have the impact as the results of Velocity Minerals Ltd. (TSX-V:VLC), with shares jumping on intersects at the Vancouver-based company's Rozino project in southeastern Bulgaria. The data was from two holes, both of which were drilled at an angle, cutting through historic drill holes to hit the best gold grades ever returned at the property.
While Bulgaria may not be the first country to spring to mind when it comes to mining, it is the total focus right now for Velocity due to favorable mining laws, including low royalties, and an ultra-low corporate tax rate of only 10 percent.
Drill hole RDD-002 intersected 74 meters grading 2.35 grams per tonne gold, which included 39 meters at 4.11 g/t gold. Drill hole RDD-001 returned 45.05 meters grading 2.04 g/t gold and 25.0 meters also grading 2.04 g/t gold.
More exploration in required to determine true thickness of the mineralization.
Velocity president and chief executive Keith Henderson stated that the results "clearly demonstrate the potential for thick, high-grade gold mineralization between the historical drill fences.”
After closing Friday at 27 cents, shares of Velocity have surged as high at 45 cents in early trading on Monday and still holding a 37% gain at 37 cents at about 10:45 AM EDT. Today's trading represents the highest level for VLC since mid-2014.
