VKA geophysics reveals its US tungsten system is much bigger than expected

Our US tungsten Investment Viking Mines (ASX: VKA) just increased the size of the potential source structures to its Tungsten project in Nevada…

The data shows the intrusion has a diameter of ~2km and a circumference of ~7km.

So the blue-sky exploration upside just 9x’d.

Before today’s announcement, the theory was that most of the system was on the eastern flank of the project area - now it wraps around a ~7km long trend:

(source)

VKA's project has in the past produced ~123,000t of tungsten at an average grade of ~0.54% from open-pits mined in the 1950’s. (source)

Most of that previous mining sat on the eastern section where ~11% of the system is outcropping (exposed at surface).

Which leaves 89% of the prospective contact completely untested…

(source)

The key takeaway for us is that now, exploration upside on the project is a lot larger.

(But of course, we won't know how much of that structure is actually mineralised or not - drilling will be needed to confirm this).

VKA's field crew is being mobilised in April for sampling, mapping and “ground-truthing” the geophysics.

Following on this, drilling is planned for the June quarter to follow up on these new targets. (source)

Tungsten prices are still running hard…

A big part of the reason why we Invested in VKA is to see the company take a previously producing US tungsten asset and bring it back into production as quickly as possible (at whatever scale).

Just as the tungsten price is running hard.

Tungsten used in military applications including in piercing munitions and armour plus has industrial applications including in machining/mining as a hardening agent.

The US has zero domestic tungsten production and with import bans for Chinese tungsten supply coming into effect (as part of the REEShore Act) in December 2026.

So the US will be in a position inside the next 12-18 months where domestic production becomes even more strategically important.

“mining or production of a tungsten ore or feedstock, including recycled material, through production of tungsten metal powders, tungsten heavy alloy, or any finished or semi‐finished component containing tungsten heavy alloy” in a covered country (China, Russia, Iran, North Korea)”. (source)

China, Russia, Iran and North Korea, control around 90% of the tungsten market, with China accounting for near 84% of this alone. (source)

With everything currently happening in the current global critical minerals posturing, tungsten prices have been running hard and are up ~230% since VKA acquired the asset:

(source)

What we want to see next from VKA

Processing concept study results 🔄

Mineral Technologies is working on flowsheet design, metallurgical characterisation and CAPEX/OPEX estimates for a modular FlexSeries plant at Linka.

We want to see this deliver a realistic, low-cost production blueprint.

Recently, VKA recently sent off a bulk sample to test its viability for processing which showed the viability for this to be used in an early production opportunity scenario, supporting a low capex near term production opportunity. (source)

Maiden drilling program 🔄

VKA is planning its first drill program for Q2 2026, using the targets generated from geophysics, digitised historic data and field mapping.

We see this as the next big catalyst, modern drill results from a project that hasn't been systematically explored in decades.

Milestones:

✅ Mapping and sampling (soils and rock chips)

✅ Geophysics/LiDAR (geophysics commenced a few weeks ago, with the results released (and has been expanded to a phase 2 program covering more area) (source)

🔄 Drill targets confirmed (VKA to integrate all exploration data and define final targets).

🔲 Drilling (planned for April) (source)

The magnetics/gravity survey phase 2 will be done in the areas of the orange callouts:

(source)

Permitting 🔄

VKA also has WSP USA (a subsidiary of ~C$28BN WSP Global) running the baseline environmental and permitting work in parallel with everything else.

Running permitting alongside exploration is important because it can compress timelines to first production.

US government funding 🔲

With the Pentagon actively seeking domestic tungsten supply and offering US$100M-$500M+ in project funding, we want to see VKA position itself for a piece of that.

Tungsten prices (APT) are at all-time highs of US$2,650/mtu and the US currently has zero domestic production.

We are hoping VKA can position itself to capture some of that attention and capital.