VKA produces 69.3% tungsten concentrate at US project

Our US tungsten Investment Viking Mines (ASX: VKA | OTC: VKALF) just produced tungsten concentrate from its project in Nevada.

VKA's project has previously produced tungsten in the 1940s and 50s.

VKA is now looking to restart the project using a simple, gravity-led processing plant.

Up until now, most of the testwork VKA’s been doing has centred around the previously producing open-pit.

Today VKA confirmed four samples from other parts of its project can also be processed using relatively simple gravity processing.

Importantly VKA has now produced above the 50% tungsten saleable threshold from all four areas.

The standout of today's results was the Conquest sample at 69.3% tungsten and 43.8% recovery:

(source)

For us the major takeaway is that VKA is showing it can produce a saleable product with very little processing.

Gravity alone is as simple as it can get (literally just relying on gravity to do the work seperating the tungsten from the host rock).

Whatever the final processing circuit ends up looking like, today’s results are a pretty solid start.

Especially with tungsten concentrate pricing in the US trading near all time highs at US$2,440/mtu (US$244,000 per tonne), this is up from US$800 when VKA acquired the project back in December last year:

(source)(source)(source)

VKA has a drilling program underway also

Over the past few of weeks, VKA has started receiving the results from the early drilling, its first drilling at the project.

This is the first drilling here in over 40 years.

The rig has paused for maintenance, but is due back mid-October to finish the program on double shifts. (source)

3 weeks ago the first assay came back last week at 14m at 0.56% tungsten, a nice hit.

Then last week VKA confirmed 20 holes are now complete, with UV logging turning up more wide zones of the tungsten mineral scheelite.

The best from the visuals reported a combined 22m of visible scheelite over a 24m section from 55m downhole.

Scheelite glows under UV light, so it makes it obvious if you have found any:

(source)

12 of the 14 holes at the main target have now hit visible mineralisation which is an 86% success rate.

(Visuals are no substitute for assays - all samples are at the lab, with results expected through October.)

The program is targeting 3 areas - holes around the historic mine to confirm old results, southwest extensions, and regional targets from prior geophysics:

(source)(source)

We also came across an interview with MD Julian Woodcock 2 weeks ago where he explained the two rock types needed to make scheelite (limestone and monzonite).

This has been seen seen together from the surrounding drilling (the first assay cross section shown below to give an idea):

(source)

See our Deep Dive on the drill hits released last week here:

What's next for VKA?

🔄 VKA’s first drill programme at US tungsten project

Here are the milestones we are tracking for the drill programme:

1. ✅ Drill rig mobilisation to site
2. ✅ Drilling starts - (visuals in August), drilling rig back to complete in mid October
3. 🔄 Assay results (first assay received, 20 holes completed as of 24th September)

🔄 VKA’s rapid restart plan

We also want to see VKA progress its rapid mine restart strategy.

Here are the milestones we are tracking on that front:

1. ✅ Assay results from stockpiles + tailings dam
2. ✅ Processing study results
3. 🔄 Metwork optimisation (Ore sorting + flotation testwork).

🔄 US engagement

This is more of a corporate milestone we want to see VKA hit.

It’s hard to predict when any of these might happen, but we are hoping VKA can attract some sort of US government funding to help finance its project AND/OR attract strategic interest from inside the US.