VKA lays out accelerated roadmap for US tungsten project
Our tungsten Investment Viking Mines (ASX: VKA), just outlined the different work programs ongoing at its project in Nevada, USA.
We Invested in VKA for its "fast to market" strategy - centred around bringing a previously producing tungsten project that sits inside US borders back into production while the tungsten price is soaring.
Today's announcement details how VKA plans to execute that strategy.
VKA had the following gantt chart in today’s announcement showing everything being worked on between now and the end of the September quarter:
(source)
What’s obvious to us looking at the chart is how much of VKA’s focus is on doing all of the things that mining companies typically do AFTER drilling an asset and defining a resource.
Over the next 3-4 months, VKA is looking to complete:
- Processing testwork - VKA’s already managed to produce a concentrate with grades around ~63.6% tungsten. (we covered that news here) Now VKA will be looking to test additional processing methods to increase recovery rates and grades. (results expected April/May)
- Processing Concept Study - VKA is working with Mineral Technologies (subsidiary of ~$5BN Downer Group) on a modular "Rapid-Start" facility blueprint with initial CAPEX and OPEX estimates. (Mid-project update expected late April) we have a feeling the market will like this one when it comes.
- Stockpile and tailings dam evaluation - VKA is assessing historical stockpiles and the tailings dam at its project for potential feedstock in the short term (fieldwork starts this month).
All of the above relate to getting the project back into production as quickly as possible.
On the exploration front, VKA is also planning mapping/sampling programs and is building a 3D geological model of its project integrating all the old data for the asset…
Ahead of a maiden drill program on the project in the June quarter.
That drill program will be the first time VKA’s asset has been drilled with modern exploration technologies across a structure where 89% of the prospective zone hasn’t been touched:
(source)
We think VKA’s “back to front” development plan for its tungsten asset is the right way to go about things with the current urgency in the US to bring online domestic critical minerals supply.
(even though it is unconventional for a mining company)
Most mining companies do everything in reverse - i.e. drill first, then figure out processing years later.
Instead VKA is working backwards to show how its previously producing asset could be brought back online using modular small scale processing.
We think the companies in the US who execute the back to front strategy will be the biggest winners out of the small caps looking to build a critical minerals business in the US.
We also noticed VKA is going for a US OTC listing this quarter AND an application is underway for the Defence Industrial Base Consortium.
(Hopefully, those two mean more US capital/interest comes into VKA over the coming months - especially now with tungsten prices sitting at all time highs):
The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.
What we want to see next from VKA
Here are the milestones we are tracking for Linka:
🔄 Processing concept study with Mineral Technologies
Mineral Technologies (a subsidiary of the ~$5BN Downer Group) is working on flowsheet design and CAPEX/OPEX estimates.
Recent results feed directly into that study - the gravity-led flowsheet is looking increasingly viable.
Here are the milestones we are tracking for this:
- ✅ Rougher gravity testwork - 16x upgrade (source)
- ✅ Cleaner gravity testwork - 53x upgrade to 63.6% WO3 (source)
- 🔄 Cleaner flotation testwork - underway now to produce saleable grade from flotation circuit
- 🔄 Ore sorting testwork - ~40kg sample being tested
- 🔄 3D geological model - being finalised
- 🔲 Modular "Rapid-Start" gravity circuit design - to feed into development studies
- 🔲 Stockpile and tailings sampling - fieldwork starting April
- 🔲 US OTC listing - expected this quarter
- 🔲 Maiden drilling at Linka - targeted late June quarter
- 🔲 Maiden Exploration Target
🔲 Maiden drilling (June quarter)
VKA is submitting a Notice of Intent to Federal Agencies for drill permitting.
The expanded geophysics showed that 89% of the prospective contact zone has never been tested - so there’s a lot of ground to cover.
(source)
🔄 Permitting and 3D geology model
WSP (~C$28BN WSP Global) is running baseline environmental and permitting work.
A 3D geology model is being completed using recently digitised mapping and drillhole data.
(source)
