VKA to complete processing concept study for US tungsten project

Our US tungsten Investment Viking Mines (ASX: VKA) just started a processing concept study for its project in Nevada.

VKA is using global mineral processing specialist “Mineral Technologies” (a subsidiary of the $5BN Downer Group) for the study.

VKA’s project has historic production of a combined ~123,000t at 0.54% tungsten grades from an open pit.

When we first Invested in VKA back in December, one of the key reasons was the potential for a "fast to market" tungsten production strategy.

Basically, getting the old Linka mine back into production quickly while tungsten prices are at all time highs.

Speaking of tungsten prices - they are up again this week…

Tungsten prices are now up ~600% since the start of the year, with China having put in export controls in early 2025:

(source)

VKA’s “processing concept study” will be a key input in VKA’s strategy to go for a modular processing unit that can be pre-assembled, brought to site and installed quickly.

(a much faster approach then the conventional multi-year plant build timelines).

VKA’s already shown ore from its project could be processed using conventional processing methods - a few weeks ago we saw VKA produce a 22.9% tungsten concentrate only using simple gravity separation.

We are hoping the processing concept study gives VKA a more holistic view of the right balance between managing costs, but getting as high a recovery rate as possible.

VKA in the right place at the right time

We think VKA’s fast to market approach is exactly what the USA needs right now.

Two weeks ago, the Pentagon asked members of the Defence Industrial Base Consortium (DIBC) to submit proposals by March 20 for projects that can mine, process or recycle 13 critical minerals.

One of the 13 critical minerals mentioned was Tungsten…

And the funding available? Ranging from US$100M to US$500M.

(source)

The US is also putting in place the “REEShore Act” which is targeting December 2026 as the deadline for the US military to be clear of Chinese tungsten supply chains entirely.

The USA currently has zero domestic tungsten production.

We are hoping VKA can quickly move its project into a position where it is a potential domestic source of tungsten (at whatever size/scale).

VKA's project sits ~200km from the Hawthorne Army Depot - that’s where that US critical minerals stockpile is reported to be:

(source - acquisition announcement in December)

We first Invested in VKA back in mid-December 2025, since then the company has done a fair bit including:

• Bulk sampling from the old open pit that was mined on its project (averaging 1% grades across all samples - for context, most operating tungsten mines run at ~0.2% grades).
• Met testing results showing a 16X concentrate upgrade via simple gravity separation
• Completed geophysical surveys that confirmed anomalies directly over the known mineralisation.
• Digitised 68 historic drill holes - identifying tungsten intercepts outside the old workings including (see our note on those results here)
• Expanded its ground position to cover extensions north and south of the Linka mine area
• And today, engaged a processing partner to do a concept study.

What's next for 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

🔲 Drilling (planned for April) (source)

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

(source)

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. The team behind LKY has contacts in the right US government departments through its management links directly to LKY. They have already secured a US$191M letter of interest from US EXIM and applied for US$41M from the Department of Defence.