Viking Mines (ASX:VKA) strengthens focus on vanadium exploration at Canegrass

Highlights

• Viking Mines (ASX:VKA) inked a binding agreement to acquire the Canegrass battery minerals project in H1.
• The Canegrass Project holds a substantial JORC (2012) Inferred Mineral Resource of 79Mt at 0.64% V₂O₅, 29.7% Fe, 6.0% TiO₂.
• As per historical rock chip results, there is high-grade vanadium mineralisation extension beyond the mineral resource area.
• There lies significant upside potential with over 9km of untested VTM horizon identified, says VKA.
• The company has completed initial limited drilling at the project with assay results expected in April.

ASX-listed battery metals explorer Viking Mines Limited (ASX:VKA) is making a mark in the industry with its continuous focus on critical mineral vanadium. Vanadium, which has been listed as a critical mineral in several countries, has an established use in steelmaking. Moreover, its use is surging in the rapidly growing Vanadium Redox Flow Battery (VRFB) sector, developing as an alternate energy storage solution.  Recently, the company shared a report focusing on developments undertaken during the half-year ended 31 December 2022. During the period, Viking continued to steer forward on the path to advance its Canegrass Battery Minerals Project, which is located in Western Australia. Also, subsequent to the period, the company completed an initial drilling campaign across the project.

Canegrass Battery Minerals Project  

VKA, through its wholly owned subsidiary Viking Critical Minerals Pty Ltd, executed a binding agreement with Flinders Canegrass Pty Ltd. in November last year to earn into Western Australia’s Canegrass Battery Minerals Project.

Under the staged agreement, VKA eyes to acquire 100% of the Project via AU$4 million exploration spend and AU$1.25 million in purchase payments.

The project, VKA says, sits within the ‘Vanadium Triangle’ of substantial vanadium projects in Western Australia. The project is 620km north-east of Perth, 60km from the township of Mount Magnet, and have access to critical infrastructure such as Midwest gas pipeline, port and rail.

The project holds a substantial JORC (2012) Inferred Mineral Resource of 79Mt at 0.64% V₂O₅. The resource has been estimated across deposits - Kinks and Fold Nose.

Project developments - The project covering 95km² tenements encompass the Vanadiferous Titanomagnetite (VTM) horizon. A field visit last year focused on identifying the continuation of the VTM horizon that is host to the vanadium mineralisation in the JORC (2012) Mineral Resource. The VTM mineralisation was identified in an outcrop along an 8km trend, demonstrating the significant exploration upside in the area, the company says.

It is important to note that VKA has identified that only 1.9km of this 8km VTM mineralised trend is constrained within the current Mineral Resource model, with additional 1.1km having limited drill testing by a former operator.

In December last year, the company roped in METS Engineering to serve as lead metallurgical consultant and advisor to help in the final stages of due diligence for the Canegrass Project.

VKA completes initial drilling at Canegrass 

VKA announced historical rock chip results for the VTM horizon at the Canegrass Project, stating that high-grade vanadium mineralisation extends beyond the mineral resource area.

Also, the company completed the final due diligence on the Canegrass Project. The company has now started Stage 1 of its agreement to earn 25% equity interest in the project tenements.

The company has also pegged three more tenements close to the Canegrass Project. Alongside, Viking is drafting an exploration plan for the project with the prime objective of expanding the known extents of the existing mineral resource and assessing the 5km of prospective strike between the Kinks and Fold Nose mineral resources.

The company has completed initial limited drilling at the project with assay results expected in April. To know more, read here.

VKA shares traded at AU$0.012 midday on 27 March 2023.