Blocks of Velium did not drop from NPCs until the May 8, 2002 patch that introduced a set of craftable royal velium plate armor for use in the 8th Prayer Shawl quest.
First comment on Allakhazam asks about their use:
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https://web.archive.org/web/20020603...tml?item=12262
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What's ths for?
By: inivar the Mighty,
Posted @ Tue, May 21st 9:31 PM 2002
I have a few of these from Velks. Are they just for the coldain armor? Or can they be turned into jewelry grade velium? Just curious cause it could save a buck or two.
Inivar Gaddavidda
Wizard of Saryrn
If I had all the answers why would I be here?
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Quote:
Uses
By: Lady Ishwar
Posted @ Wed, May 22nd 7:08 AM 2002
Block of velium + coldain temper -> folded sheet of velium.
Folded vel sheets are used for armor required for the 8th shawl quest, and for some of the new cultural plate.
Ishwar - level 53 Barbarian Rogue - currently unguilded - AB Server
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An announcement from EQTraders:
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https://web.archive.org/web/20020610....com/index.htm
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May 7 , 2002 - Incominggggggggg!
Tomorrow's patch will include new tradeskill recipes (mainly pottery, but a little bit of everything, from the sound of it), as well as the 8th Coldain Prayer Shawl quest. I'm not sure how many of the expected 1000+ new recipes that we were warned to expect are arriving tomorrow, but it's bound to be busy around here.
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A quest guide for the 8th Prayer Shawl notes the addition explicitly:
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https://web.archive.org/web/20020602...sts/eighth.htm
Quote:
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Velium: Get yerself back to Crystal Caverns or Velketor's! Remember your old buddies the orc miners and the crystalline spiders? They miss you! Go pay them another visit. If you still have an aversion from collecting last time, you can also try the various icy-looking golems in places like Velks or the Tower of Frozen Shadow or down the pit in Icewell Keep. The blocks are a new drop with this shawl, however, so it's possible they might not be in all these less used zones yet. There are extra recipes provided in the Overview of the Recipes up above so that you can convert the different kinds of velium that drop into the large bricks and blocks that you need. There is no need for you to use all of those recipes if you have enough large bricks and blocks.
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Blocks of Velium can still be crafted using 3 Large Bricks of Velium + 1 Coldain Velium Temper
as seen here (Last updated Nov 25, 2001).