Viking’s first First Hit hits prove mothballed mine has more to give
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Viking has wrapped up the Phase 1 diamond drilling program just three months after acquiring the historical project near Kalgoorlie, Western Australia.
Of the 13 holes and 2,596.9 metres Viking Mines (ASX:VKA) has drilled, 10 holes have had visible indications of mineralisation at the positions forecast by its modelling.
Eight holes have been sampled and assay results are expected late this month.
Prior to closure of the First Hit gold mine by Barra Resources in 2002, at a time of depressed gold prices of US$320/oz, the First Hit mine produced approximately 30,000 oz ounces of gold at an average grade of ~7.7 grams of gold per tonne (g/t).
To put that in context, anything over 5g/t is considered high grade and at the current gold price even anything as low as 1-2g/t can be profitable for miners, with gold today at US$1,779.20.
No modern exploration activity has been conducted in the 18 years since the mine closed. This creates a significant opportunity for Viking, which acquired the project with the support of CSA Global.
The gold play will now immediately start Phase 2 of the diamond drilling program, with geological models being updated as information as it comes to hand.
Managing director Julian Woodcock said it was great to report that the company had completed the Phase 1 diamond drilling (DD) programme in just over three months since acquiring the First Hit Project.
“Based on the visual observations seen in core and information gained about the potential controls to mineralisation, we have selected priority holes from the Phase 2 program and will continue drilling throughout May,” he added.
“We are also continuing to interpret the observations made from the core and target additional holes to test for extensions to the First Hit system.”
Viking is currently undertaking the following activities to maximise the information gained from the diamond core and progress the Phase 1 and Phase 2 DD programmes:
The project incorporates 28km2 of tenements, with six active Mining and Prospecting licences and one exploration licence under application.
The project area is well-serviced by infrastructure and is located 50km west of the sealed Goldfields highway and the township of Menzies. The nearest operating gold processing plant is the Davyhurst Mill 50km to the south.
This article was developed in collaboration with Viking Mines Limited, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.