VKA sells WA gold project for up to $5M - now focused on US tungsten project

Our US tungsten Investment Viking Mines (ASX: VKA | OTC: VKALF) just sold its non-core gold project in WA for up to $5M.

Once completed, VKA will receive:

• $1.2M upfront cash plus
• $1M in FAU shares, and
• Up to $2.8M in performance rights based on certain milestones.

(source)

For VKA, this moves off a project it has barely worked on for over 6 months, while also strengthening the balance sheet.

It also frees up VKA to focus on its Tungsten Project in Nevada.

Just as tungsten prices in the US are starting to run again.

We came across this post over the weekend from Katusa Research:

(source)

AND VKA is weeks away from its first drill program on the project.

VKA confirmed today that its maiden RC drill campaign is expected to get underway in coming weeks. (source)

VKA expects to mobilise straight after the US July 4th break and start drilling by mid-July, with the drilling aimed across 3 different objectives.

Assays from this are expected over the September quarter.

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.

(source)

This is the program that will test what is actually underneath the surface, and what is required to be able to turn the historical production story into a modern resource with a near term restart opportunity.

VKA is calling this a “fast-to-market” strategy and is working toward putting together a development case for the project - bringing it back into production using a small modular plant while US tungsten prices trade near all time highs.

We think the drill program and the results from drilling could drop at the right time with the macro environment for domestic tungsten projects in the US continuing to heat up.

Especially for a near term restart opportunity, not a high capex project that is still years away from production and expensive capex, plus permitting red tape.

We covered the drilling program in a deep dive article here a few weeks ago: VKA: First drilling at USA tungsten project in over 40 years. Tungsten price hits new all-time highs. Trumps invest in a tungsten mine.

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 - Results recently (optimisation ongoing)
• 🔄 Ore sorting testwork - ~40kg sample being tested - Early results here today
• 🔄 Modular "Rapid-Start" gravity circuit design - to feed into development studies

🔲 Maiden drilling program (late June quarter).

VKA received approvals ~6 weeks ago for its 63-hole drill program. (source)

Since then VKA has locked in the drilling contractors and the schedule, with the rig confirmed to be nearing final checks ahead of mobilisation to site following the 4th of July break and “drilling expected to commence by mid-July”. (source)

🔄 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:

(source)