Velocity Minerals Ltd.

Velocity Minerals Ltd.

July 07, 2010 07:00 ET

Velocity Minerals Ltd. Announces Commencement of Drilling on Cassiar Moly Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2010) - Velocity Minerals Ltd. (TSX:VLC) is pleased to announce that drilling has commenced on its Cassiar Moly property located near Cassiar in northern British Columbia. Due to inclement weather and the early onset of winter conditions in 2009, the first drill hole was suspended at 260 feet before reaching the intended target zone. That initial hole is being continued this season with, depending on results, at least three additional holes to follow. Of note, although the intended target, a mineralized shear zone, was not reached before drilling was suspended, the first drill hole had anomalous Mo values from the surface to total depth of 260 ft. Unexpectedly and of tremendous encouragement to management, assay results showed a grade of 0.02% Mo from 62 feet to 260 feet.

Surface and underground geological work strongly suggest that the mineralization is related to a north-northeast trending fault system that may represent a deep feeder structure. Vertical persistence to at least 250 metres from surface has been shown and the mineral zones found underground are open along strike and at depth.

Last season the Company successfully rehabilitated the extensive adit on the property, completed surface and underground sampling to relocate previously reported high grade mineralization and produced computer models of the results.

Three zones of significant mineralization, sequentially named Zone A, Zone B, and Zone C, were encountered in the underground workings: Zone A represents mineralization found in the cross cut, Zone B represents mineralization found in the last 140 meters of the main drift and Zone C represents mineralization found in the first 60 meters of the main drift. Results and details of these zones are summarized below.

Zone A is an area of mineralization found throughout the 268 meters length of the cross-cut and most likely represents a high grade extension of the mineralized N-NE structures found in Zone B. Fifty four chip channel samples were collected in Zone A, of which thirty six samples, totalling 20.6 meters in sample length, assayed 0.1% Mo or higher, including sample 732979 (0.25 meters of 7.9% Mo), sample 732975 (0.5 meters of 3.5% Mo) and sample 732971 (1.0 meter of 1.1% Mo). Selected results from Zone A are shown in Table 1.

Table 1 – Select Results from Zone A
Sample No. Meterage Sample Interval (m) Comment Mo (%)
732771 34.4 0.20 Back 0.543
732774 68 0.50 Right rib 0.571
732967 163.5 0.20 Left rib 0.746
732971 198.5 1.00 Left rib 1.067
732975 228 0.50 Left rib 3.448
732978 235 1.20 Left rib 0.623
732979 237 0.25 Right rib 7.893
732980 240 1.00 Left rib 0.906
732986 257 1.00 Left rib 0.658
732765 258 1.00 Left rib 0.760

Zone B, mineralization found in the last 140 meters of the main drift, comprises a number of N-NE trending mineralized structures. Mineralization typically occurs as fine grained molybdenite(MoS2) along faults, but also occurs as coarse grained veins and as disseminations. Eighty-five chip channel samples were collected in Zone B, variously from the left or right rib. Twenty five samples, representing 12.75 meters in total sample width, assayed 0.1% Mo or higher. An additional 38 samples, representing 25.4 meters in total sample length, assayed 0.01% Mo or higher. Selected results from this zone are shown in Table 2.

Table 2 – Select Results from Zone B
Sample No.  Meterage Sample Interval (m) Description Mo (%)
732989 598 0.50 Right rib 0.268
732993 603 0.10 Left rib 0.261
732995 608 0.50 Right rib 0.218
732796 632.5 0.50 Left rib 0.327
732917 639 0.25 Right rib 0.255
732913 641.1 0.90 Right rib 0.219
732924 650 1.00 Left rib 0.403
732933 659.4 0.60 Right rib 0.255
732934 661.5 0.25 Left rib 0.582
732937 663 0.20 Left rib 0.322
732945 685 0.50 Right rib 0.517
732946 685 0.20 Right rib 0.492

Zone C consists of mineralization associated with a N-NE structure located in the first 60 meters of the main drift. This structure is sub-parallel to the main drift. Several E-NE trending mineralized structures also cross cut this zone. In total, nine chip channel samples were collected in Zone A. The three samples collected in the back (roof) represent the N-NE structure and the six samples collected along the ribs (sides) represent crossing structures. Table 3 summarizes results from this zone.

Table 3 – Select Results from Zone C
Sample No. Meterage Sample Interval (m) Description Mo (%)
732893 31.50 1.5 Back 0.094
732895 35.50 1.5 Back 0.030
732900 46.00 0.8 Back 0.137
732892 28.50 0.5 Left rib 0.076
732896 29.50 1.5 Left rib 0.002
732897 22.00 0.5 Right rib 0.022
732898 25.00 0.5 Right rib 0.037
732894 37.00 0.5 Right rib 0.034
732899 31.50 1.5 Right rib 0.200

This news release has been reviewed and approved by Erik A. Ostensoe, P. Geo., Velocity's Qualified Person for purposes of its Cassiar, B.C. area projects.

Velocity Minerals Ltd. is a company dedicated to the acquisition and development of advanced or high-grade mineral properties. Velocity presently owns the mineral rights to two molybdenum projects in northern British Columbia (Mt. Haskin and Cassiar Moly), a gold prospect in Southeast British Columbia (Keremeos) and is actively pursuing other properties internationally.

Kenneth R. Holmes, Chairman

The TSX has neither approved nor disapproved of the information contained herein.

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