Viking Mines Raises $2.39M, Advances 5,750m Drilling at First Hit Gold Project

Strategic Review and Resource Definition

Viking Mines Limited (ASX:VKA) has delivered a significant update for the quarter ended 31 December 2024, highlighting the results of a strategic review and exploration activities at its First Hit Gold Project in Western Australia's Eastern Goldfields. The historic First Hit Gold Mine, which produced approximately 30,000 ounces at a high grade of 7.8g/t Au before closing in 2003, has now been reassessed with a newly defined inferred mineral resource of 83.8kt at 7.0g/t Au, equating to 19,000 ounces of gold. This resource estimate, completed by MEC Mining, underscores the potential for remaining high-grade mineralisation within the 480km2 tenement package along the prolific Zuleika Shear.

Managing Director Julian Woodcock emphasised the value of the resource in the current gold price environment and the strategic importance of the project’s location near existing infrastructure and operations. The resource estimate provides a foundation for further exploration and potential development strategies.

Drilling Progress and Exploration Targets

During the quarter, Viking commenced an initial Phase 1 Reverse Circulation (RC) drilling program targeting high-priority zones along the Zuleika Shear, completing 25 holes for 2,670 metres before a weather-related pause in December. Drilling has since resumed in January 2025, focusing on the Northern Duplex Target, where multiple shear zones exhibiting biotite alteration, silicification, and sulphide mineralisation have been confirmed, key indicators of gold mineralisation potential.

The Phase 1 program aims to test near-mine targets such as Jana's Reward and First Hit North and South, as well as greenfields targets along the shear that have seen limited prior bedrock exploration. Encouraging geological observations from the first drill traverse support the prospectivity of these zones, with assay results expected imminently to validate the presence and grade of gold mineralisation.

Looking ahead, Viking plans a Phase 2 drilling campaign scheduled to commence in late March 2025, targeting additional high-priority areas including the Central Duplex, Southern Duplex, and Southern Structural Targets. These targets have been identified through comprehensive structural and geochemical analysis and represent key opportunities for resource expansion.

Financial Position and Corporate Developments

Viking’s financial footing remains robust, with a strong cash balance of $4.77 million as of 31 December 2024. This was bolstered by a well-supported placement raising approximately $2.39 million at $0.009 per share, providing the company with sufficient funding to pursue an expanded drilling program of up to 20,000 metres. Corporate expenditure during the quarter was primarily directed towards exploration activities, resource estimation, metallurgical testwork, and general administration.

In parallel, metallurgical testwork at the Canegrass Battery Minerals Project continues to advance, with stage 3 roasting tests on magnetic concentrate samples underway. Final results are anticipated in the March quarter, potentially adding value to Viking’s battery minerals portfolio.

Outlook and Next Steps

With the Phase 1 drilling program ongoing and assay results expected shortly, Viking is poised to refine its understanding of the First Hit deposit’s extent and grade continuity. The company is also evaluating underground mining options, including dewatering and rehabilitation costs, to unlock value from the inferred resource. Further exploration and drilling will seek to expand the resource base and test down-dip extensions, leveraging the existing underground decline that reaches 220 metres below surface.

Viking’s strategic approach combines advancing its gold assets with ongoing assessment of battery minerals projects and potential acquisitions, aiming to build a diversified portfolio capable of delivering long-term shareholder returns.