Velocity Minerals, a public company dealing with the acquisition, exploration and the development of gold, molybdenum and other mineral resources, has signed an Access Agreement with the owners of patented claims, known as A claims, which are crucial to the company's Orogrande claim block.
The agreement allows Velocity Minerals complete access to the patented claims required to conduct geo-chemical / geo-physical surveys and for drilling. The company will also gain the right to locate its crew and drill equipment on the patented claims in order for the drilling to commence drilling in the Badger vein zone.
Velocity Minerals has begun the application process to gain exploration permits with the US Forest Service (USFS) in order to drill multiple targets. Since the USFS permitting requirements does not affect the drilling equipment’s location on the patented claims, the Access Agreement will enable Velocity Minerals to immediately begin the drilling project for the targets in order to mobilize the crew and the equipment.
The patented claims totaling approximately 40 A contain the Penman-Homestake mine, the gold producing mine that existed between 1896 and 1941. Prior to 1932, the total production from lode mines and placer in the six districts that lie north of the Salmon River amounts to approximately 3,000,000 oz of gold. Geo-physical data of the northern Orogrande claim block obtained by Velocity Minerals indicates that the Orogrande shear zone divides into two fault lines, both of which pass through the A Claims.
Last year, over 300 soil samples were collected by a field crew from an 8.4 km grid line centered on the A claims. The geochemical survey taken in 2010 indicated two anomalous areas for gold. The area north of the Penman-Homestake mine was larger and measured 700 X 500 m and lies near the center of the claim block. Based on the survey results, Velocity Minerals staked an additional 40 claims.
The district comprising the A Claims is known to hold several gold occurrences with certain grades running as high as 0.8 oz/t. The survey results indicated two high priority target areas. The company will initiate a drilling program of about 3000 m to test the Badger zone this summer.
Source: http://www.velocityminerals.com/