Viking Mines (ASX: VKA) expands land package at First Hit lithium and gold project

Highlights

• Viking Mines has won two ballots associated with its tenement application E30/571.
• The company’s total land holdings stand at ~493km² (granted and under application) in a highly prospective lithium and gold district.
• VKA is expecting results from the Stage 2 metallurgical testwork at the Canegrass Project in February.
• Pit optimisation at Canegrass Project on track to be completed before end of the March Quarter.

Shares of battery minerals explorer Viking Mines Limited (ASX: VKA) were up over 18% to AU$0.013 in early trade on Friday morning, after the firm shared latest developments relating its First Hit Lithium Gold Project and the Canegrass Battery Minerals Project in WA.

VKA has won two ballots associated with its tenement application E30/571. The additional tenure of about 32.8km² is situated to the west of the company’s present tenure.

Now, the company’s total land holdings stand at approximately 493km² (this includes granted as well as under application).

VKA plans to begin data consolidation to define high priority areas of interest ahead of the tenements moving to grant.

First Hit Lithium Gold Project

Under the two ballots won by Viking, the company has secured additional tenure based next to Ora Banda Mining (ASX:OBM), which has divested its lithium rights into a joint venture with Wesfarmers Chemicals, Energy & Fertilisers for AU$26 million.

An extensive auger drill campaign has been completed and 1,220 samples gathered over a 26km strike length of the Ida Fault. The company is awaiting drill assays.

Canegrass Battery Minerals Project

At the Canegrass Project, Viking is gradually advancing development activities. It is expecting results from the ongoing Stage 2 Metallurgical testwork later this month.

VKA is consolidating data as inputs into a pit optimisation study on the updated Mineral Resource Estimate for the Canegrass Project. The study is likely to be completed in the ongoing quarter. The study will identify what portion of the above resource provides positive economic returns using the input economic and technical assumptions. The goal is to enable prioritising future drilling campaigns.

In the meantime, a bulk rougher concentrate is being prepared in the laboratory. Up to 20kg of concentrate is expected to be produced which will be used in the next steps of the testwork.

VKA aims to produce V₂O₅ flake and keep the Fe-Ti residue at marketable levels. This is expected to increase the value of the project, says the company.

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