Viking Mines Accelerates Gold Exploration Success in Western Australia

Viking Mines: Unlocking Gold and Vanadium Value in Western Australia

Viking Mines (ASX: VKA) has positioned itself as a diversified developer and explorer with significant gold and vanadium assets in strategic Western Australian locations. Recent developments highlight the company's dual-focus approach that offers investors exposure to both traditional precious metals and the growing battery minerals sector.

Gold Discovery Success Along Prolific Zuleika Shear

Viking's Riverina East Gold Project has delivered promising initial drilling results that confirm the company's strategic position in one of Western Australia's most productive gold regions. Located just 40km west of Menzies in the Eastern Goldfields, the project encompasses approximately 480km² of highly prospective tenure.

The company's recent drilling program has yielded significant success at the Bifrost Prospect (formerly Northern Duplex Target), with intercepts including:

• 17m at 1.1g/t Au from 28m, including 2m at 3.1g/t Au
• 5m at 1.0g/t Au from 102m
• 3m at 1.3g/t Au from 115m

These results are particularly noteworthy as they come from an area with 25km of untested strike along the Zuleika Shear – the same geological structure that hosts the combined 1.3+ million ounce Riverina-Mulline Camp.

Viking Mines gold exploration in Western Australia has recently completed a 6,000m Phase 2 RC drilling program testing the Central Duplex Target and following up on the Bifrost Target, with assays pending and expected to begin arriving in late April.

High-Grade Resource at Historic First Hit Mine

At the center of Viking's gold strategy is the historic First Hit Gold Mine, which historically produced approximately 30,000 ounces at an impressive grade of 7.7g/t Au. The company has defined a high-grade Inferred Mineral Resource of 83,800 tonnes at 7.0g/t Au for 19,000 ounces of unmined gold.

This resource sits on a granted Mining Lease with substantial existing infrastructure, including a decline to approximately 220m below surface – representing an estimated $15 million in value. The mine was closed in 2002 when gold prices were below US$325/oz, suggesting significant economic potential at current gold prices.

Viking is currently conducting underground mining studies to evaluate optimisation opportunities for the resource.

Vanadium Project Provides Critical Mineral Exposure

Complementing its gold assets, Viking's 100%-owned Canegrass Battery Minerals Project represents a significant vanadium resource positioned to capitalise on growing demand for energy storage solutions.

The project boasts:

• A Global Inferred Mineral Resource of 146 million tonnes at 0.70% V₂O₅, 31.8% Fe & 6.6% TiO₂
• A Pit Constrained Resource of 61 million tonnes at 0.81% V₂O₅ & 35.9% Fe

Located in Western Australia's Murchison Region with excellent infrastructure access, the project is advancing through metallurgical testing and flowsheet optimisation. Recent achievements include:

• Production of high-quality magnetic concentrate with 1.43% V₂O₅, 59% Fe & 11.7% TiO₂
• 93.2% V₂O₅ recovery from magnetic concentrate roasting
• 86.7% total V₂O₅ recovery from ore feed to vanadium solution
• Successfully produced vanadium pentoxide (V₂O₅) flake

The company is currently focused on final purification step testwork to target high-purity vanadium products for premium pricing in the growing battery storage market.

Understanding Vanadium Flow Batteries

Vanadium flow batteries represent a promising technology for long-duration energy storage, offering several advantages over lithium-ion alternatives. These systems store energy in liquid electrolyte solutions containing vanadium in different oxidation states, allowing for independent scaling of power and energy capacity.

Key advantages include:

• No degradation over extended usage periods
• Lower cost per kWh over total battery life
• Non-flammable chemistry enhancing safety
• 100% recyclability of electrolyte
• Simple capacity expansion by adding more electrolyte

With global vanadium supply currently dominated by China (61%) and Russia (17%), Western Australian projects like Canegrass represent important potential sources of supply diversification for critical mineral security.

Investment Thesis

Viking Mines presents a compelling investment opportunity at its current enterprise value of just $4.53 million (market cap $9.3 million with $4.77 million cash as of December 31, 2024). Key value drivers include:

1. Dual-commodity exposure to both gold and critical mineral vanadium
2. Strategic location of assets near existing mining operations and infrastructure
3. High-grade gold resource at First Hit Mine (7.0g/t Au) with existing infrastructure
4. Exploration upside along 25km of untested Zuleika Shear
5. Significant vanadium resource with established flowsheet pathway
6. Strong cash position funding ongoing exploration programs

The company's ongoing Viking Mines gold exploration in Western Australia provides near-term catalysts, with assay results from the 6,000m Phase 2 program expected in the coming weeks. Management is also advancing underground mining evaluations at First Hit while continuing vanadium purification testwork at Canegrass.

Why Investors Should Follow Viking Mines

Viking offers an attractive entry point into both traditional gold exploration and the emerging battery minerals sector. With a team led by Chairman Charles Thomas and Managing Director Julian Woodcock, the company has assembled a portfolio of assets in premier Western Australian mining districts with clear pathways to value creation.

The combination of high-grade gold resources, greenfields discovery potential, and a substantial vanadium project provides investors with diversified exposure to both precious and battery metals. With a strong cash position funding ongoing work programs and multiple near-term catalysts, Viking Mines gold exploration in Western Australia represents an opportunity to gain exposure to the resource sector at an enterprise value that appears to significantly discount the company's existing assets and exploration potential.

Want to Learn More About Viking Mines' Dual-Commodity Strategy?

For investors seeking exposure to both gold and critical minerals, Viking Mines (ASX: VKA) presents a compelling opportunity with its high-grade gold resources and significant vanadium project. To discover more about their strategic Western Australian assets and upcoming catalysts, visit vikingmines.com for the latest investor information and project updates.