Velocity Minerals Ltd.
TSX : VLC

Velocity Minerals Ltd.

July 18, 2011 08:30 ET

Velocity Minerals Ltd. Plans Drill Program for Orogrande Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 18, 2011) - Velocity Minerals Ltd. (TSX:VLC) is pleased to announce that it has entered into an Access Agreement with the owners of certain patented claims immediately contiguous with and surrounded by the Company's northern Orogrande claim block, known as the A Claims. The agreement grants the Company access to the patented claims for the purpose of conducting geo-physical and geo-chemical surveys and, most importantly, drilling. This access will permit the Company to locate its drill equipment and crew on the patented claims so it may commence drilling the Badger vein zone our highest priority target to date on the A claims.

Although the Company is in the process of making application with the US Forest Service ("USFS") for exploration permits to drill multiple targets on its A Claims, the permitting process is expected to take at least six months or longer. In discussions with the USFS, its representatives have indicated that they have no objection to the Company drilling into the A Claims from the patented claims prior to receiving an exploration permit provided there is no surface disturbance on the A Claims. Since locating drilling equipment on the patented claims is not subject to USFS permitting requirements, the Access Agreement will enable the Company to commence drilling those targets as quickly as the crew and equipment can be mobilized.

The patented claims, although only forty acres, contain the former gold producing mine known as the Penman-Homestake mine (1896-1941). In six districts north of the Salmon River near Elk City, which includes the Penman-Homestake mine, the combined production from placer and lode mines totaled roughly 3,000,000 oz of gold before 1932 (Shenon and Reed, 1934). Geo-physical data obtained by the Company over its northern Orogrande claim block suggests that the Orogrande shear zone splits into two fault lines both passing through the A Claims with one line trending toward the past producing mine.

In November thru December 2010, a field crew collected over 300 hundred soil samples from a 8.4 line-km grid centered on the A claims. The 2010 geochemical survey results showed two separate anomalous areas for gold. The ground north of the past producer Penman-Homestake mine was the larger of the two at 700 meters in length and up to 500 meters wide. This zone runs in a northwest to southeast direction near the center of the claim block and the anomaly is open to the north and also to the southeast. Following interpretation of the survey results, the Company staked 40 additional claims to the east of the original 60 "A" claims to insure that the open geochemical anomaly was contained in the claim group.

While the ground covered by the A Claims has received relatively little recent exploration, the district is known to contain multiple gold occurrences with some grades running as high as 0.8 ounce (22.7grams) per ton. Thus the results of the survey have provided two high priority targets in a known gold producing area. The Company plans to carry out an initial drilling program of approximately 3000 meters of drilling this summer to test the Badger zone.

The information that forms the basis of this News Release has been prepared under the supervision of David S. Boyer, MSc., CPG, an independent professional geologist engaged by the Company and a Qualified Person (as defined in NI 43‐101). However, some of the data referred to herein was obtained from government files, other historical sources and third party news releases, all of which are believed to be reliable but which have not and cannot be verified.

Velocity Minerals Ltd. is a public company dedicated to the acquisition, exploration and development of molybdenum, gold and other mineral resources. In addition to the Company's two Cassiar, B.C. area properties, its southeastern B.C. gold prospect and its Idaho claims, several other opportunities in the mining industry in North America and elsewhere are actively being pursued.

On behalf of the Board of Directors,

Kenneth R. Holmes, Chairman.

Forward-Looking Information

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or by words indicating that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

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

Contact Information