Viking Mines Defines 12,400 Ounces in Underground Resource at First Hit

Underground Mining Study Highlights Potential

Viking Mines Limited (ASX – VKA) has announced the completion of an Underground Mining Study (UMS) on its First Hit gold mine, located within the Riverina East Project in Western Australia. The study delineates an inferred mineral resource of 53.1 kilotonnes at 7.2 grams per tonne gold, equating to approximately 12,400 ounces of gold within an underground mine design. This represents a significant 65% conversion of the global inferred resource estimate of 83.8kt at 7.0g/t Au for 19,000 ounces.

The UMS, conducted by specialist consultants Unicorn Consulting, applies realistic mining, processing, and cost parameters, assuming the use of sub-level open stoping, a method previously employed successfully at First Hit. The design leverages existing underground infrastructure, including a decline extending to about 220 meters below surface, with new development planned where necessary to access stoping panels.

Caution and Context

While the study offers promising insights, Viking Mines is clear that the results are preliminary and conceptual. The resource remains classified as inferred, reflecting a low level of geological confidence, and the study does not yet support Ore Reserves or a production target. Further exploration, evaluation, and technical studies are required to confirm economic viability and to refine mining plans.

Importantly, the UMS was completed using a conservative gold price of A$4,500 per ounce, whereas current gold prices trade at a roughly 13% premium, around A$5,080 per ounce. This price environment enhances the potential value of the resource and underpins Viking’s near-term strategies to unlock value for shareholders.

Exploration Momentum at Riverina East

Alongside the underground study, Viking Mines continues to advance exploration across its extensive Riverina East tenements. Follow-up drilling is planned to commence by the end of the June quarter, focusing on the Bifrost target where recent high-grade intercepts include 2 meters at 23.6g/t Au. The company has also completed a heritage survey to facilitate access to additional tenements and is preparing for further drilling at the Southern Duplex target.

The exploration program is supported by a comprehensive dataset, including historical drilling, underground face sampling, and recent reverse circulation and diamond drilling campaigns. Viking’s approach integrates modern geophysical surveys and geochemical sampling to refine structural interpretations and identify extensions to mineralisation beyond current drilled limits.

Strategic Positioning and Infrastructure

First Hit is situated on a granted mining lease surrounded by significant processing infrastructure, including proximity to the Davyhurst Mill operated by Ora Banda Mining, approximately 40 kilometers to the south. The project’s location within a well-established gold mining region, coupled with existing underground development, positions Viking Mines to potentially fast-track development should further studies confirm economic extraction.

Managing Director Julian Woodcock emphasized the inherent value in the resource, stating that the study highlights substantial potential in the current gold price environment. The company is actively investigating monetisation pathways while advancing its exploration agenda.

Looking Ahead

Viking Mines’ next steps include mobilising a drill rig for Phase 3 drilling late in the June quarter, targeting high-grade zones and expanding the resource footprint. The company also plans to complete targeting and drilling at the Southern Duplex area following heritage clearance. Meanwhile, further technical work will aim to refine underground mining parameters and economic assessments.

While the UMS provides a valuable framework, investors should note the conceptual nature of the study and the absence of declared Ore Reserves or production targets. Funding and permitting remain key considerations as Viking Mines advances its development and exploration plans.