VANCOUVER–The historic northern British Columbia mining town of Cassiar has a new resident: another junior exploration company searching out new riches in an old stomping ground.
Velocity Minerals (VLC-T) listed on the Toronto Stock Exchange in May, shortly after acquiring a private company called Velocity Exploration for its two properties in northern B. C. The new Velocity has spent a season exploring those two molybdenum properties, both of which come with tantalizing historical reports.
Mt. Haskin sits 8 km off Highway 37. According to a recent National Instrument (NI) 43-101 report, the Mt. Haskin claims cover an intrusive-hosted porphyry-type molybdenite deposit as well as at least two skarn-type mineral zones. The molybdenite zone, which is in granitic porphyry, was first staked in 1961 and saw exploration by the now-defunct Della Mines from 1969 to 1974. Another company no longer in existence, Demand Gold, drilled the skarn areas in 1997.
Della put considerable effort into exploring Mt. Haskin, drilling more than 20,000 ft. in 47 surface holes plus almost 6,000 ft. in underground drilling and excavating two adits totalling 4,700 ft. The company traced the molybdenite zone for 1,900 ft. along strike, a 500 ft. width, and to 500 ft. depth; Della also produced a resource estimate, now considered historical and not compliant with NI 43-101 regulations, of 13.5 million tons grading 0.157% molybdenum.
This past summer, Velocity punched 13 holes into Mt. Haskin and returned some promising results. Hole 2 cut 128 ft. grading 0.132% molybdenum starting 22 ft. down-hole. Hole 3 hit 110 ft. grading 0.157% moly from 15 ft. depth and then returned 0.154% moly over 88 ft. from 223 ft. below surface.
Other results include 266 ft. grading 0.048% moly in hole 4, including 25 ft. averaging 0.2% moly, and 356 ft. of 0.06% moly in hole 7, including 45 ft. of 0.18% moly.
Velocity’s other property, Cassiar Moy, is 22 km southwest of Mt. Haskin and adjacent to Columbia Yukon Explorations’ (CYU-V, CYUXF-O) Storie deposit. At Storie, Columbia Yukon has proven up an indicated resource of 98.3 million tonnes grading 0.64% moly plus 30.9 million inferred tonnes averaging 0.059% molybdenum.
The Cassiar Moly property has not been drilled, but a previous operator drove 3,500 ft. of crosscuts and drifts in an adit that eventually reached a point 700 vertical ft. below outcropping mineralization. The outcropping mineralization has provided grades from 0.2% moly over 12 ft. to 3.6% moly over 5 ft. in old work. Historical reports also claim that chip samples from 700 metres below returned grades similar and better.
Velocity is, of course, keen to test those historical numbers. The company spent considerable time over the summer reopening the portal to the adit. Contractor delays meant workers were not able to get into the adit before winter but that is a top priority for next season.
Velocity was able to gather chip samples from the area and those support the historical reports. A 0.7-metre chip sample from the outcrop graded 0.869% moly; another small outcrop west of the portal returned 0.7 metre grading 0.124% moly; and a rock from the adit dump pile graded 1.273% moly.
Velocity shares recently traded near 28.5¢. The company has a 52- week trading range of 11-90¢ and has 29 million shares outstanding, 44 million fully diluted.