VKA sampling supports strong historical tungsten recovery rates from US project - drilling now on track for a mid-july start

Our US tungsten Investment Viking Mines (ASX: VKA | OTC: VKALF) just received assay results from the tailings dam at its Tungsten Project in Nevada, USA.

VKA's project produced tungsten between 1941 and 1956.

The project ran a 360 tonne per day mill in 1955-56, and mining stopped when the US government suspended its tungsten buying program. (source)

Today, VKA reported assays for all 52 samples taken across the old tailings dam with a thickness weighted average of just 0.03% tungsten and a maximum of 0.15% tungsten.

VKA’s key takeaway - there is minimal tungsten left in the tailings which is a good indication previous mining runs and processing programs were able to effectively recover the tungsten from the project with minimal waste.

Which in theory should mean that when VKA goes to mine and process its ore it does it with similarly strong recovery rates…

Especially considering modern processing techniques that VKA can deploy on the project (based on the work done to date, we have already seen VKA get up to the ~76% recovery rate mark).

We covered that recently here:VKA increases high value tungsten recoveries to 76% from US project

VKA is also days away from its first drill program on the project

Earlier in the week VKA confirmed that drilling preparations were being finalised, with final checks on the rig underway ahead of mobilisation.

Following the 4th of July US Independence Day holiday (this weekend), mobilisation is set to commence next week, with the rig scheduled to arrive on site from mid July.

Drilling preparation earthworks are set to get underway from the week starting the 13th of July, so not too long to wait now.

The drilling is planned to cover 3 main areas:

• The historical workings,
• An ~800m southwest extension that has never been drilled, and
• Regional targets along the geophysical anomaly.

(source)

We should point out that tungsten prices in the US have been running hard with a strong macro backdrop.

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

(source)

You can see our recent deep dive here which goes through the project and why tungsten is so needed by the West right now: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)