they are for a quest in BootyBay, I will leave it up to you to figure it out, but ya only need 4, the rest can be sold in stacks of 4 at the ah, or take it to Booty bay and Use a WTS message, any non miners are at your mercy to complete the quest.
Capitolg pretty much covered everything but in response to yur smelthing question the answer is no. Lesser bloodstone ore cannot be smelted and like he said is only used for the one quest in BB whihc only requires 4. So either save it for your guildmates who might need it at those levels or you can easily sell it in BB just by saying in general chat that you are selling it.