Viking Mines (ASX: VKA) has identified significant priority exploration targets at its Linka tungsten project following phase one geophysical surveys, including an 820m mineralised corridor, and has expanded into phase two exploration. This follows recent positive metallurgical results and a supportive tungsten price environment.
Linka Geophysics Identifies Priority Targets
Viking Mines has successfully completed phase one high-resolution gravity and magnetic surveys at its Linka tungsten project. These surveys were crucial in delineating coincident gravity highs over the Linka Main and Conquest areas, alongside identifying buried features beneath cover.
The geophysical results have revealed an approximately 820m sub-cropping mineralised corridor. Significantly, this corridor extends for around 800m beneath southwest volcanic cover, suggesting a substantial hidden prospect.
Gravity surveys are designed to detect density contrasts. In this instance, they highlight the difference between dense garnetite skarn, with a specific gravity exceeding 3.5, and the lighter host rocks, which typically range from 2.5 to 3.0 specific gravity. Magnetic highs, meanwhile, effectively map a regional intrusive unit known to be associated with tungsten mineralisation.
Exploration Program Expands to Phase Two
Following the promising phase one results, Viking Mines has expanded its exploration efforts into phase two. The magnetic survey coverage has been extended by approximately 2.8 square kilometres to the west, while the gravity survey has been broadened by 0.35 square kilometres to the southwest.
The primary aim of this expanded phase two programme is to generate further high-priority targets. The company plans to initiate field validation by mid-March, setting the stage for potential drilling.
The initial survey program included 2.2 square kilometres of high-resolution ground magnetics and 0.5 square kilometres of high-resolution ground gravity, comprising 726 gravity stations and 111 line kilometres of magnetics.
Supportive Metallurgy and Tungsten Price
These exploration advancements at Linka follow recent positive metallurgical testing results. Earlier tests demonstrated a significant 16-fold grade uplift, achieving a 22.9% WO3 concentrate from a 1.3% WO3 feed, with a rougher recovery of 63.7%.
Viking Mines is actively evaluating a potential low-capex, modular gravity processing pathway that could offer an efficient development route.
The broader market context remains favourable, with tungsten prices reported at approximately US$1850 per mtu APT (CIF Rotterdam). This supportive commodity price environment underpins the commercial potential of successful exploration and development.
Acquisition Terms and NSR
Viking Mines holds its USA Tungsten Project tenements, including Linka, through BLK Group LLC and Viking Tungsten LLC. The company has the option to acquire 100% of these projects for US$2.88 million over seven years.
A 2% Net Smelter Royalty (NSR) is payable to the BLK Group. Viking also has an option to buy down this NSR to 1% for US$2 million dollars.
Outlook and Risks
Viking Mines has advanced its Linka tungsten project with promising geophysical targets and positive metallurgical test results, supported by a strong tungsten price. However, the project remains speculative, with future success dependent on translating these findings into economic mineralisation through further exploration, drilling, and overcoming potential challenges related to permitting and execution timelines.
