VKA confirms high grade tungsten stockpiles at US project in Nevada

Our US critical minerals Investment Viking Mines (ASX: VKA | OTC: VKALF) just announced sampling results from the stockpiles at its tungsten project in Nevada, USA.

VKA’s project produced tungsten from open pits back in the 1950s (a combined ~123,000t at 0.54% tungsten).

From those mining runs - VKA had leftover stockpiles on site - which until today hadn’t been sampled systematically.

Today, VKA put out assay results from 41 different samples averaging a ~0.4% tungsten grade (peaking at up to 1.1%).

So very similar grades to the averages from previous mining runs on the project and well above the average grade from most mining operations globally (which can be as low as ~0.2%).

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We think today’s news matters for VKA because of its "back to front", fast to market strategy.

Instead of drilling first and working out processing years later, VKA’s strategy is to advanced the processing flowsheet for a small scale modular plant that it can use to get its project into production quickly.

(While tungsten prices in the US are high - VKA's announcement today put the tungsten price at US$3,100/mtu - up ~3.9x since VKA acquired its project).

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Today's stockpile sampling results slot straight into that near-term production strategy basically as potential feedstock for a plant while VKA drills out and defines a larger resource for the project.

AND VKA still has:

• A Processing Study underway to deliver CAPEX and OPEX estimates for a 300,000t/yr processing facility.
• A tailings dam evaluation, to check whether unrecovered tungsten remains in the old tailings and to assess what the 1950s plant actually recovered.
• Pending assays from a second, larger rock stockpile at Conquest, plus resampling of historical trenches across the project.

All of that forms part of the “get into production” quickly stage of works - without actually mining anything - using stockpiles and material from the tailings dam.

The second part then becomes about drilling to prove up a larger resource…

VKA expects to be drilling on its ground in late June/early July.

The maiden drill program is next

While the stockpile and processing work advances the near-term track, VKA's maiden drill program is the second track and it’s getting close now.

Drill permits are approved, site preparation is scheduled for this month and drilling follows straight after.

It will be a 63-hole program and the first drilling at Linka since the 1970s.

The holes are spread across

• the historical workings,
• an ~800m southwest extension that has never been drilled, and
• regional targets along the geophysical anomaly.

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This is the program that will test what is actually underneath the surface, and it is what could turn the historical production story into a modern resource.

We think the drill program and the results from drilling could drop at the right time - just as the macro environment for domestic tungsten projects in the US heats up.

Right now:

• Tungsten is on the US Critical Minerals List with zero domestic US production.
• China controls the bulk of global supply (~84%).
• US Department of Defense sourcing rules tighten the screws on Chinese-origin tungsten from the end of 2026 into 2027.

That last reason, is why we think VKA’s drill program could be coming at the right time…

What we want to see next from VKA:

Here are the key milestones we want to see VKA hit over the coming months:

🔄 Processing concept study for modular plant

VKA is working on a processing plant design including CAPEX/OPEX estimates.

VKA has also mentioned prior that a consultant (TOMRA) had been engaged in Germany to test ore sorting on samples from VKA’s project (this could improve recoveries inside whatever processing circuit VKA is putting together).

Here are the milestones we are tracking for this:

• 🔄 Cleaner flotation testwork - Recent results here, further optimisation ongoing
• 🔄 Ore sorting testwork - ~40kg sample being tested - underway now
• 🔄 Modular "Rapid-Start" gravity circuit design - to feed into development studies

🔲 Maiden drilling program (late June quarter).

VKA received approvals 3 weeks ago for its 63-hole drill program. (source)

Since then VKA has locked in the drilling contractors and the schedule, which remains on track to mobilise to site in June with drilling in the same month, so we should see drill pad preparation works underway soon.

🔄 Permitting and 3D geological model

VKA is also working on baseline environmental permitting AND a 3D geological model for the project.

Here is a gantt chart VKA recently put out that details everything being worked on more broadly:

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