Viking Mines (ASX: VKA) charges into 2024 with resource boost and strong cash position

Highlights

• Viking Mines is making key advancements at the Canegrass Project as well as the First Hit Project.
• During the last quarter, VKA announced updated mineral resource estimate (MRE) for its vanadium project.
• Viking has hired services of Bureau Veritas for next stage metallurgical work.
• The company has completed a review of the limited historical data and identified lithium anomalies in soil samples and rock chips at its First Hit Project.
• VKA undertook a regional auger drilling programme at the Mt Ida fault/Zuleika shear corridor.
• VKA had a strong cash position of AU$5.1 million, as of 31 December 2023.

Battery minerals explorer focused on critical mineral vanadium, Viking Mines Limited (ASX: VKA) has entered the March 2024 quarter after completing an action-packed December 2023 quarter. The recently released three-month report brings forth all the significant updates for the period, highlighting the company’s key advancements at the Canegrass Project and progressing exploration activities across the First Hit Lithium and Gold Project.

CANEGRASS BATTERY MINERALS PROJECT

Updated MRE: During the quarter, VKA announced the updated MRE for the Canegrass Project, highlighting a 103% surge in the contained V₂O₅ to 2.2 billion pounds within the total MRE of 146Mt. Notably, a high-grade subset of the MRE holds 27.5Mt at 0.87% V₂O₅. To know more, read here.

Growth Potential: Viking is expecting the total high-grade subset to expand and surpass its target of over 30Mt and commensurate growth of the total MRE >0.5% V₂O₅ cut-off is expected to be presented as a by-product. These target areas will be tested in the future drill programmes to be conducted by Viking.

Metallurgical Testwork: Viking has hired services of Bureau Veritas to conduct next stage metallurgical work for the project. The company has submitted 29 samples from hole VCRC0026 which was drilled as part of the 7,500m RC drill programme in mid-2023.

Findings of the examination of the magnetic concentrate and tail produced:

Data source: company update

Image source: company update

FIRST HIT LITHIUM AND GOLD PROJECT

VKA completed a review of the limited historical data and identified lithium anomalies in soil samples and rock chips at its First Hit Project. As per the company, the prominent anomalies are located on E30/529 with multiple zones >50ppm Li up to 250m wide and 700m long.

Also, Viking has completed a transaction for 95% acquisition of tenement E30/505. Results up to 400ppm lithium and corresponding high elevated rubidium values up to 3,000ppm have been highlighted after assessment of the rock chip data.

1,200 Hole Auger Programme Completed: VKA undertook a regional auger drilling programme at the Mt Ida fault/Zuleika shear corridor covered by Viking tenure to assess this lithium potential.

VKA expanding footprint in a prolific lithium district

The ASX-listed firm is targeting prospective tenure around the substantial landholding on the Mt Ida Fault. So far, it has bought a 95% interest to all minerals in tenement E30/505, based immediately to the west of its current tenure.

Also, Viking has acquired multiple tenements to the east and west. It has initiated the approval process for E30/570, whilst E30/571 is subject to a ballot likely to be conducted this month. With the applications, the total land package exceeding 530km².

OTHER KEY DEVELOPMENTS

• Viking welcomed Mr Bevan Tarratt onboard as its new Non-Executive Director. VKA also appointed Ms Michaela Stanton-Cook as a Joint Company Secretary.
• VKA had a strong cash position of AU$5.1 million, as of 31 December 2023. It posted an income of AU$36k from different investing activities.

What’s the plan ahead?

The company is expecting to receive assays from the auger drill programme conducted at First Hit Project, in the March quarter. Also, the ongoing stage 2 Metallurgical Testwork is likely to get completed with samples from the Canegrass Project. Viking is looking forward to begin pit optimisation studies on the updated MRE for the Canegrass Project.

VKA shares traded at AU$0.012 on 23 January 2024.