Viking Mines reports significant gold discoveries at its Riverina East Project, including a new large gold anomaly and high-grade drill intercepts, alongside a promising underground mining study at First Hit.
- Discovery of second large >300m gold anomaly at Bifrost
- High-grade intercept of 2m at 23.6g/t gold with visible gold
- Inferred underground resource of 12.4k ounces at First Hit mine
- Drill-for-Equity agreement with Topdrill to fund exploration
- Strong cash position of $2.72 million as of June 2025
Exploration Breakthroughs at Riverina East
Viking Mines Limited (ASX – VKA) has delivered a compelling update on its Riverina East Project in Western Australia's Eastern Goldfields, revealing a second substantial gold anomaly at the Bifrost target. Recent infill shallow auger drilling has delineated a >300-metre-long zone exceeding 40 parts per billion (ppb) gold, nested within a broader >700-metre anomaly at 20ppb gold. This discovery adds a new dimension to the company's exploration narrative in a region historically underexplored but highly prospective.
Complementing this, the company’s phase 2 regional drilling program, comprising nearly 6,000 metres, has yielded impressive high-grade gold intercepts. Notably, drillhole VKRC0180 returned a standout 2 metres at 23.6 grams per tonne (g/t) gold, including visible gold mineralisation; a hallmark of potentially economic deposits. Additional intercepts within the same hole further underscore the target’s promise, with multiple quartz veins indicating a robust mineralising system.
Underground Mining Study Defines Mineable Resource
In parallel with exploration, Viking has completed an Underground Mining Study (UMS) at the First Hit gold mine, a historically productive site that ceased operations in 2003. The study, conducted by an external engineering consultancy, applied modern mine design parameters to the inferred mineral resource estimate (MRE) and identified a constrained underground resource of 53.1 kilotonnes at 7.2g/t gold, equating to approximately 12,400 ounces above a 1.3g/t cut-off grade.
While the UMS is preliminary and based on inferred resources; meaning economic viability is not yet assured; it provides a valuable framework for future development options. Viking’s management has signaled intent to explore monetisation strategies, including further technical and economic assessments, to unlock value from this high-grade resource.
Strategic Partnerships and Financial Position
To support its aggressive exploration agenda, Viking entered a Drill-for-Equity agreement with Topdrill Pty Ltd, a leading drilling contractor. This innovative arrangement allows Viking to conserve cash by issuing shares to offset drilling costs, enabling a larger and more efficient drill program. As of June 30, 2025, Viking maintains a solid cash position of $2.72 million, underpinning its capacity to advance multiple projects.
The company also reported successful shareholder resolutions at its June general meeting, including the appointment of Dr Julian Stephens as a Non-Executive Director, strengthening its governance as it progresses its exploration and development objectives.
Looking Ahead – Continued Exploration and Development
Viking plans to commence Phase 3 drilling at Riverina East, focusing on follow-up drilling at Bifrost to expand on the high-grade results and initial testing of the Southern Structural Target. A high-resolution magnetic geophysical survey is also slated to refine structural interpretations and guide future drilling. Meanwhile, the company will continue evaluating the economic potential of the First Hit underground resource and explore additional greenfield targets on its tenure.
No fieldwork was conducted during the quarter at the Canegrass Battery Minerals or Narndee Projects, but these remain part of Viking’s broader portfolio for future advancement.
Bottom Line?
Viking Mines’ latest results at Riverina East set the stage for a pivotal exploration phase, with high-grade gold discoveries and a promising underground resource study hinting at a potentially transformative development path.
Questions in the middle?
- Will Phase 3 drilling confirm and expand the high-grade gold zones at Bifrost?
- How will Viking refine the economic assumptions in the Underground Mining Study to progress towards a production target?
- What impact will the Drill-for-Equity share issuance have on shareholder dilution and company valuation?