Velocity was originally incorporated under the name "Benem Ventures Inc." on September 22, 2000 under the Alberta Business Corporations Act. It was continued into British Columbia on December 2, 2004 and changed its name from Benem Ventures Inc. to Velocity Minerals Ltd. on May 2, 2008.
Velocity completed its initial public offering of 2,000,000 shares at a price of $0.20 per share on December 31, 2001. It was listed on the TSX Venture Exchange on March 4, 2002, where it traded until July, 2004 when it was transferred to the NEX board of the TSX Venture Exchange.
Velocity was established as a capital pool company ("CPC"). Its business purpose was to identify and evaluate properties or businesses with a view to completing a Qualifying Transaction, as defined in the TSX Venture policies.
In May, 2008 Velocity acquired all of the shares of Velocity Exploration Ltd., a British Columbia company which at the time owned the mineral rights to the Mt Haskin and Cassiar Moly projects and had just completed three equity offerings for gross proceeds of just under $6 million. Velocity Exploration Ltd. is the Company's only subsidiary and is wholly owned.
Shortly thereafter Velocity completed its listing application on the Toronto Stock Exchange (the "TSX") and has traded there ever since.
Velocity's business is to develop its principal properties, Mt Haskin and Cassiar Moly, and to pursue the acquisition and development of other significant or advanced molybdenum properties.
At Mt. Haskin, which is located 8 km from Highway 37, the provincial highway that passes from Highway 16 at Kitwanga, B. C. to the Alaska Highway in the Yukon, a granitic pluton has a contact zone that carries molybdenite mineralization; several nearby skarn zones have zinc, copper, silver, lead, tin and bismuth values. The molybdenite area was explored in the late 1960s by Della Mines Ltd., a private company that drilled over 29,000 feet in more than forty diamond drill holes. A historical estimate of 13.5 million tons @ 0.157% MoS2 above a cut-off grade of 0.050% was prepared in 1970 by G.L. Lamont, P. Eng., that company's engineer. The sampling and analytical methods used are unknown, and unverified by a NI 43-101 Qualified Person. Similarly, Lamont's usage of the term "reserve" does not conform to current usage of the term. Some of the earlier work will have to be repeated in order to determine the reliability of the data.
A NI 43-101 Qualified Person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, Velocity Minerals is not treating the historical estimate as current mineral reserves or mineral resources, and the historical estimate should not be relied upon. Nevertheless, Velocity Minerals believes the historical estimate is relevant since Della Mines Ltd., a mineral exploration company that was financed by several established mining and oil/gas companies, had good credentials as a serious entity. The limits of the zone have not been defined: induced polarization surveys may assist in guiding exploration. The skarn zones comprise massive iron oxides and iron sulphides with base metal sulphides. A two-phased program of geochemical and geophysical surveys and diamond drilling has been recommended.
The Cassiar Moly molybdenite prospect, located approximately 22 kilometers southwest of the Mt Haskin property, is situated in a fine grained phase of quartz monzonite that itself is a phase of the Cassiar Batholith. Strong molybdenite mineralization with quartz and minor chalcopyrite occurs as fracture fillings and replacement disseminations along with quartz and potash feldspathization. Approximately 3500 feet (1067 m) of underground workings 700 feet (210m) below surface outcrops were directed to the molybdenite zones. Exploration to determine the dimensions of the mineral zones has been recommended. Although a large deposit amenable to mining by open pit methods is sought, the high grade molybdenite zones found at surface and underground may be extracted by underground mining methods. In particular, there have prior reported surface occurrences of 0.20% Mo across 12 feet to 3.6% across 5 feet and the adit has reported highgrade zones that run up to 4.17% MoS2 over a meter and a combined average grade across 3 meters of 1.64% MoS2. The quoted assays have not been verified in the field by a NI 43-101 Qualified Person and should be viewed with caution.
The technical information and work program recommendations referred to above are derived from a technical report entitled "REVIEW OF MT. HASKIN AND CASSIAR MOLY MOLYBDENUM PROSPECTS CASSIAR DISTRICT NORTHWESTERN BRITISH COLUMBIA, CANADA", dated December 1, 2007 and prepared by Eric Ostensoe, P. Geo., an independent a NI 43-101 Qualified Person. The report is available on this site in the Projects menu (CLICK HERE) and at www.sedar.com.
Velocity is planning to undertake the recommended work programs at an estimated cost of approximately $2,000,000 to better determine the potential of the Mt. Haskin and Cassiar Moly properties.