VKA hits visible tungsten from project in Nevada - assays due in October

Our US tungsten Investment Viking Mines (ASX: VKA | OTC: VKALF) just reported more wide zones of visible tungsten from its maiden drilling in Nevada.

VKA's main asset is the Linka project which previously produced tungsten.

~123,000 tonnes at 0.54% tungsten was mined there in the 1940s and 50s.

Mining only stopped when the US government ended its tungsten buying program being happy to rely on the cheaper foreign sources, which is now a serious supply risk.

VKA is drilling that project right now, the first drilling in over 40 years.

The first assay came back last week at 14m at 0.56% tungsten, a nice hit.

Today VKA confirmed 20 holes are now complete, with UV logging turning up more wide zones of the tungsten mineral scheelite - the best 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 September and October.)

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

(source)(source)

The first southwest and regional holes haven't hit scheelite yet, but they did hit the limestone-monzonite contact.

This geology contact is exactly what is required to form the tungsten bearing scheelite mineralisation, supporting VKA's exploration model.

We also came across an interview with MD Julian Woodcock this week 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)

The rig has taken a short break for maintenance and is due back mid-October to finish the program on double shifts.

The tungsten macro keeps strengthening

Over the prior 90 or so days there has been several key news items relating to the tungsten markets:

• US President Trump banned tungsten scrap exports
• The UK government invested in a domestic tungsten project
• Zimbabwe banned tungsten exports…

Then BREAKING NEWS yesterday:

The US Department of War is investing US$150M into one of the USA’s largest historic tungsten mines…

(part of a broader US$2BN funding deal - US$450M of it being from the Department of War):

(source)(source)(source)

After pouring billions of dollars into rare earths (stuff for magnets used in fighter jets, robots and AI)…

…and creating a few billion dollar+ success stories out of rare earth ASX small caps)…

The US government’s attention is now on tungsten - possibly the most important military critical mineral.

Tungsten is used in armour-piercing ammunition, fighter jets, and the warheads of Tomahawk, Patriot and Precision Strike missiles.

Hopefully the US government attention is the starter for a re-rate in small cap tungsten stocks now.

(source)

You can read our Deep Dive article on that restart news: US Department of War puts US$450M into a Nevada tungsten restart. VKA is planning one in the same state.

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. ✅ Earthworks
2. ✅ Drill rig mobilisation to site
3. ✅ Drilling starts - (visuals in August)
4. 🔄 Assay results (first assay received, 15 holes completed as of 10th 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.