Viking Mines (ASX: VKA) turns in sturdy first half with strides at Canegrass and First Hit projects

Highlights

• Viking Mines continues to advance exploration in Western Australia, focusing on two Tier 1 projects.
• Notable achievements include an updated mineral resource estimate (MRE) at Canegrass, showcasing a 103% rise in contained V₂O₅ and a high-grade subset of 27.5Mt at 0.87% V₂O₅.
• Exploration highlights at the First Hit project include the discovery of lithium anomalies and acquisition of a 95% stake in a neighbouring tenement.

Viking Mines Limited (ASX: VKA), an Australian exploration company, continues to forge ahead with its ventures in the resource-rich landscape of Western Australia. With a focus on two projects situated in this tier 1 jurisdiction, the company remains poised for growth and discovery in this lucrative region.

In its recently unveiled half-yearly report for the period ended 31 December 2023, the company shed light on its concerted efforts in advancing exploration activities. The Canegrass Battery Minerals Project, central to the company's strategic objectives, witnessed significant progress and development initiatives aimed at unlocking its potential.

Furthermore, as the latter half of the reported period unfolded, the company embarked on a renewed phase of exploration activities across its First Hit Lithium Gold Project.

In the six-month period, the company also saw a new board addition with the appointment of Bevan Tarratt as Non-Executive Director. To know more, read here.

Mineral resource estimate at Canegrass Battery Minerals Project

In July 2023, a major drill program was concluded at the Canegrass Project. The campaign focused on eight target areas. The aim of the drill program was to extend and grow the mineral resource estimate (MRE). During the period, results from the 7,500m of drilling were reported –

Data source: Company update

The company updated its MRE after receiving the drill results at Canegrass. The updated MRE totals 146Mt at 0.70% V₂O₅, 31.8% Fe and 6.6% TiO₂, reflecting a rise of 103% in the contained V₂O₅ to 2.2 billion pounds in the total MRE.

The company highlighted a high-grade subset of the MRE at 27.5Mt at 0.87% V₂O₅.

Metallurgical work advances at Canegrass

Metallurgical studies started during the period under which VKA submitted 36 samples from its Kinks South deposit. The aim of the study was to determine recovery of vanadium through magnetic separation methods.

 Data source: Company update

Subsequently, stage 2 metallurgical testwork was initiated by VKA, in which 29 samples were evaluated. The testwork suggested:

 Data source: Company update

During the half year, the company acquired the first 25% equity stake of the stage 1 of the farm-in agreement (FIA) for the Canegrass Project. The company is now proceeding with Stage 2 of the FIA, eyeing an additional 24% interest in the project.  

Click here for the recently received encouraging results from the Pit Optimisation Study.

Exploration activities recommence at First Hit Lithium Gold Project

At the First Hit project, exploration activities restarted. The company conducted a thorough examination of historical data and discovered lithium anomalies in soil samples and rock chips within its wholly owned tenure. The most notable anomalies were found in E30/529, featuring multiple zones with lithium concentrations exceeding 50ppm and stretching up to 250m wide and 700m long. The orientation of these anomalies shows that NW-SE striking might be the potential source of mineralisation.

Also, the company concluded a transaction to buy a 95% stake in tenement E30/505, which lies northwest of the First Hit mine. Rock chip data analysis showed that lithium concentrations reached up to 400ppm, accompanied by significantly elevated rubidium values of up to 3,000ppm.

Viking Mines’ proactive approach to exploration and strategic initiatives in Western Australia underscores its commitment to unlocking the vast potential of mineral resources in the region. With promising developments at the Canegrass Battery Minerals Project and renewed exploration activities at the First Hit Lithium Gold Project, the company is eyeing further growth and success.

VKA shares traded at AU$0.010 apiece at the time of writing on 27 March 2024.