Highlights

• Viking Mines Ltd (ASX:VKA) has concluded the initial limited drilling campaign at the Canegrass Battery Minerals Project
• Total six Reverse Circulation (RC) holes have been drilled for about 543 metres
• 17m of massive magnetite intersected in one hole, 110m down dip of historical drillhole CGD01 (28m at 0.90% V₂O₅)
• Several zones of magnetite bearing horizons intersected in another hole, 170m down dip from hole PCG07 (17m at 0.71% V₂O₅) and PCG08 (22m at 0.77% V₂O₅)
• The samples collected from the site have been sent to ALS laboratories in Perth. The company expects the assays to be received in April

Viking Mines Ltd (ASX:VKA) has successfully and safely completed an initial Reverse Circulation (RC) drill program totalling 6 holes for 543m at the Canegrass Battery Minerals Project, located in the Murchison region of Western Australia.

It is important to note that 17m of massive magnetite VTM mineralisation has been intersected at the estimated target depth in hole VCRC0006 along with several magnetite bearing horizons in hole VCRC0005.

The samples collected from the site have been sent to ALS laboratories in Perth. The company expects the assays to be received in April.

 
The drill samples from drillhole VCRC0006
Image source: Company update

As per the company, the presence of massive magnetite and VTM mineralisation only 87m below surface is a positive indicator for the first hole drilled into this target for over 40 years.

Also, Viking considers that the scale of the Kinks South target brings in a big opportunity to add value for its shareholders by growing the Canegrass Mineral Resource base through drill testing down dip of the outcropping high grade vanadium mineralisation.

^{Data source: Company update}

Rapid advancements at the Project

The ASX-listed company had started an initial limited drilling campaign at the Canegrass Project to track the progress in annual tenement commitment activities prior to a significant drill program of about 5,500m, which is likely to begin in the June Quarter.

The initial drill programme covered total six holes for around 543m and tested two targets, Honey Pot West (gold target) and Kinks South (vanadium target).

Kinks South VTM Target: In January this year, Viking mapped and rock chip sampled the extensive VTM outcrop striking East-West at the target area. At this target, six rock chip samples were collected, with grades varying from 1.17% to 1.44% V₂O₅.

To test the potential downdip continuity of the projected high-grade VTM horizon, two drillholes VCRC0006 and VCRC0005 were designed 675m apart (E-W). At present, VKA is targeting zones greater than 0.8% V₂O₅.

Drillhole VCRC0006 intersected the lithologies identified in outcrop to the south (gabbro and leucogabbro), with a thick zone of VTM mineralisation present from 90-106m downhole (87m vertical depth). The visual identification of the VTM is established by the strongly magnetic nature of the rock chips which is a feature of magnetite mineralisation. Additional thin zones (<2m) of massive magnetite were also noticed at distinct depths in the drillhole.

Photo of RC chip from hole VCRC0006 from 98m downhole showing magnetite and sulphides. Dominant sulphide is Pyrite (lighter colour sulphide) with minor chalcopyrite (darker coloured sulphide)

Also, minor sulphides have been seen associated with the magnetite. Pyrite is the dominant sulphide, however, chalcopyrite has also been observed in the RC chips in the VTM horizon. This is an important observation as presence of the battery minerals copper, nickel and cobalt has also been observed in the drillhole database previously.

The occurrence of chalcopyrite is significant for the project because it will allow the potential for a future processing option using floatation techniques if it can be liberated from the host rock. This process option is forming part of the comprehensive metallurgical testwork programme planned for later in the year.

Aerial view looking due West showing the location of drillholes VCRC0006 and VCRC0005 at the Kinks South target at the Canegrass Project. Note the scale of the target area which is ~1.1km long

Moreover, the occurrence of magnetite across horizons is a positive indicator for the presence of Vanadium. Further confirmation will be done after the company receives the assay results.

Honey Pot West Gold Target: The drill programme for four drillholes over 257m were designed and drilled to test the Honey Pot gold target, to follow up on a historic intercept drilled by Flinders Mines in the year 2022.

During the program, numerous lithologies were intersected including gabbro and granodiorite. Samples have been sent to the laboratory for fire assay and multielement analysis; the results are likely to be declared next month.

^{Data source: Company update}

VKA stock price jumps ~10%

Post the ASX announcement, VKA shares were spotted trading at AU$0.011 on 20 March 2023, up more than 9.99% from the last close. The market capitalisation stood at AU$10.25 million.