VKA bulk samples return 1.3% tungsten from US asset

Our US tungsten Investment Viking Mines (ASX: VKA) just took bulk samples from one of its projects in Nevada, USA.

VKA recently announced the acquisition of a group of tungsten projects in Nevada, USA, where we made it our most recent addition to our portfolio in mid December.

You can read up on the initiation note here: Our Latest Investment: Viking Mines (ASX: VKA)

Tungsten is a critical military mineral, from which the USA has zero domestic supply, so is currently 100% reliant on imports.

Tungsten has military uses in munitions (bullets), vehicles and body armour, missiles and radiation shielding.

VKA’s new projects have historic production of a combined ~123,000t at 0.54% tungsten grades.

Meanwhile, tungsten prices are at all time highs. (source)

(source)

Today VKA took 4 bulk samples from one of its projects (Linka) for a total of ~295kg including a 58kg sample from the old Linka Open Pit which returned 1.3% tungsten grades.

Linka was the mine that was operated back in 1955-56 and produced at ~360 tonnes per day…

From all of the sampled material, the average grade across all four samples was 1.0% tungsten.

So all bulk samples showed relatively consistent grades:

(source)

For some context, most operating tungsten mines these days operate with grades averaging ~0.2% grades.(source)

Here are where the results from today came from:

(source)

VKA also confirmed “scheelite mineralisation” - scheelite is the primary ore for tungsten mining and is known for its fluorescence and unique appearance under UV light.

(scheelite concentrates at all-time highs of US$937/mtu)

As seen in the announcement on the right of the image below:

(source)

Viking Mines
ASX: VKA

Check out the 9 reasons we Invested in VKA in our launch note, where we go into more detail on the 9 reasons: Our Latest Investment: Viking Mines (ASX: VKA)

The 9 Reasons We Invested in VKA

1. Low market cap with room to re-rate higher
2. VKA has the same team and backers as Locksley Resources (ASX: LKY).
3. Tungsten prices trading at all time highs
4. China dominates the global supply and has placed export restrictions on tungsten
5. VKA’s tungsten assets are in Nevada, USA
6. Very few companies with tungsten projects on the ASX - even less with projects inside the USA
7. VKA’s projects have produced tungsten in the past
8. Capital is flowing into US critical metals macro thematic
9. VKA can follow the “US critical minerals playbook”

What do we want to see VKA do next?

Objective 1: Complete the acquisition of the new tungsten assets.

We want to see VKA complete acquisition of the 6 tungsten projects in today's announcement.

Milestones:

🔲 Due diligence process completed

🔲 Acquisition completed

Objective 2: Target generation work (mapping/sampling)

We want to see VKA complete rounds of sampling (including channel/rock chip sampling) to confirm historic tungsten mineralisation at the project.

We also want to see the project mapped with LiDAR to reveal the full extent of the underground workings on the project.

Milestones:

🔄 Mapping and sampling (soils and rock chips)

🔲 Geophysics/LiDAR

🔲 Drill targets confirmed

Objective 3: First drilling program

We want to see VKA work through the permitting process and commence its maiden drill program on one of its newly acquired tungsten projects.

Milestones:

🔲 Drill permitting

🔲 Drilling starts

🔲 Drilling results

Objective 4: Define a downstream tungsten strategy

We want to see VKA define a clear downstream tungsten strategy.

Milestones:

🔲 Bulk sampling to run metallurgical testing.

🔲 Downstream partnerships/agreements

Bonus objective: US government engagement for funding

This would be an added bonus for us.

We would like to see VKA apply for and then land some non-dilutive US government funding to progress its projects.