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NI 43-101 Technical Report on the Rozino Property Has Included

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NI 43-101 Technical Report on the Rozino Property Has Included National Instrument 43-101 Technical Report for the Rozino Project, Republic of Bulgaria. Report No. 20160810_Rozino NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT FOR THE ROZINO PROJECT, REPUBLIC OF BULGARIA PREPARED FOR VELOCITY MINERALS LTD. BY REPORT DATE: WEDNESDAY 26TH JULY 2017 EFFECTIVE DATE: MONDAY 3RD OCTOBER 2016 LC075878-1 National Instrument 43-101 Technical Report for the Rozino Project, Republic of Bulgaria National Instrument 43-101 Technical Report for the Rozino Project, Document Title Republic of Bulgaria. Project Number 20160810_Rozino Prepared by James Hogg MSc MAIG, Director and Principal Consultant Contact [email protected] Addison Mining Services Ltd 64 Addison road Wanstead Company Address London E11 2RG Company No. 08883789 Effective Date Monday 3rd October 2016 Signature Date Wednesday 26th July 2017 Competent Person James Hogg MSc MAIG, Director and Principal Consultant Competent Person Signature Client Name Velocity Minerals Ltd. 530 - 625 Howe Street Client Address Vancouver, British Columbia V6C 2T6 LC075878-1 Addison Mining Services Ltd. Page 0 of 104 National Instrument 43-101 Technical Report for the Rozino Project, Republic of Bulgaria Table of Contents 1 Executive Summary ................................................................................................ 7 1.1 Introduction ................................................................................................................. 7 1.2 Project Description and Location ................................................................................ 7 1.2.1 Mineral Tenure & Option Agreement Terms ....................................................... 8 1.2.2 Environmental & Cultural Heritage Liabilities ..................................................... 9 1.2.3 Exploration Permitting & Access.......................................................................... 9 1.2.4 Royalties ............................................................................................................. 10 1.3 Accessibility, Local Resource & Infrastructure .......................................................... 10 1.4 History ....................................................................................................................... 11 1.5 Geological Setting ...................................................................................................... 12 1.6 Mineralisation & Deposit Types ................................................................................ 13 1.7 Exploration ................................................................................................................ 13 1.8 Drilling ....................................................................................................................... 13 1.9 Sampling & Analysis .................................................................................................. 14 1.10 Data Verification .................................................................................................... 15 1.11 Mineral Processing & Metallurgical Testing .......................................................... 16 1.12 Mineral Resource Estimates .................................................................................. 17 1.13 Conclusions ............................................................................................................ 18 1.14 Recommendations ................................................................................................. 23 2 Introduction ......................................................................................................... 25 2.1 Terms of Reference ................................................................................................... 25 2.2 Sources and Information and Data ........................................................................... 26 2.3 Units .......................................................................................................................... 26 2.4 Property Inspections by the Author .......................................................................... 26 2.5 Addison Mining Services ........................................................................................... 27 3 Reliance on Other Experts ................................................................................... 27 4 Property Description and Location ...................................................................... 28 4.1 Project Location ......................................................................................................... 28 4.2 Mineral Tenure .......................................................................................................... 29 4.3 Option Agreement Terms .......................................................................................... 31 4.4 Environmental Liabilities ........................................................................................... 31 4.5 Cultural Heritage ....................................................................................................... 31 4.6 Exploration Permitting .............................................................................................. 32 4.7 Surface Rights ............................................................................................................ 33 LC075878-1 Addison Mining Services Ltd. Page 1 of 104 National Instrument 43-101 Technical Report for the Rozino Project, Republic of Bulgaria 4.8 Royalties .................................................................................................................... 33 4.9 Other Factors and Risks ............................................................................................. 34 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography .......... 35 5.1 Accessibility ............................................................................................................... 35 5.2 Climate ...................................................................................................................... 36 5.3 Local Resources ......................................................................................................... 36 5.4 Physiography ............................................................................................................. 36 6 History .................................................................................................................. 37 6.1 Work Done ................................................................................................................ 37 6.2 Comment on Historical Work .................................................................................... 39 7 Geological Setting and Mineralisation ................................................................. 41 7.1 Regional Geology ....................................................................................................... 41 7.2 Project Geology and Mineralisation .......................................................................... 45 8 Deposit Types ....................................................................................................... 50 9 Exploration ........................................................................................................... 53 9.1 Procedure, Sampling Methods and Quality .............................................................. 53 9.2 Exploration results and Interpretation...................................................................... 54 9.2.1 Geological Mapping ........................................................................................... 54 9.2.2 Soil Sampling ...................................................................................................... 56 9.2.3 Trenching and Trench Sampling ........................................................................ 57 9.2.4 Geophysics ......................................................................................................... 58 10 Drilling .................................................................................................................. 60 10.1 Rozino Deposit ....................................................................................................... 60 10.2 Tashlaka South Prospect........................................................................................ 66 11 Sample Preparation, Analysis and Security ......................................................... 68 11.1 Comment on Sampling and Analytical procedures ............................................... 69 12 Data Verification .................................................................................................. 70 12.1 Site Visit ................................................................................................................. 70 13 Mineral Processing and Metallurgical Testing ..................................................... 78 14 Mineral Resource Estimates ................................................................................ 81 14.1 Geoengineering - 1992 .......................................................................................... 81 14.2 Hereward - Wardell Armstrong International 2005 .............................................. 82 14.3 Asia Gold – Snowden Group (UK) 2006 ................................................................. 83 14.4 Caracal – Maine Reserves Associates (USA) 2007-2008........................................ 83 15 Mineral
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