TORONTO, July 21 (Reuters) - Velocity Minerals’ VLC.TO shares soared more than 30 percent on Tuesday after the small exploration company announced it has started work to develop a property in Western Canada.
The molybdenum mining company said its Cassiar Moly property in northern British Columbia has strong molybdenite mineralization.
Velocity said initial work will consist of surface sampling and testing for mineralization, and computer modeling of the results. The first phase will be followed by a drilling program to begin to define the mineralization.
“We are very pleased to finally be able to target this high grade mineralization on surface and in the adit 700 feet below,” Velocity Chairman Kenneth Holmes said in a release.
“Previous owners of this property never drilled from the surface to the adit to test for the mineralization that we believe connects the two occurrences. Nor, to our knowledge, did they drill below the adit to what we believe could be the source,” Holmes said.
The Vancouver-based exploration company’s shares were up 30.8 percent, or 4 Canadian cents, at 17 Canadian cents on the Toronto Stock Exchange at midday on Tuesday.
Velocity also owns the rights to the Mt. Haskin molybdenum property, located near the Cassiar Moly site.
$1=$1.11 Canadian Reporting by Nina Lex; editing by Rob Wilson