Viking Mines Reaches Critical Milestone in Vanadium Production at Canegrass Project
VKA (VKA) Share Update July 2024 Monday 29th
Viking Mines Achieves Key Milestone in Vanadium Production
Viking Mines Limited (ASX: VKA) has announced a significant milestone in its Canegrass Battery Minerals Project, with the successful production of vanadium pentoxide (V2O5) flake from a sample collected at the site.
Instant Summary:
- First production of vanadium pentoxide (V2O5) flake from Canegrass sample.
- Commencement of Stage 3 metallurgical testwork.
- Focus on producing larger samples for further testwork.
- Strong cash position of $3.9M as of 30 June 2024.
Milestone Achievement
Viking Mines Limited has achieved a critical milestone by producing vanadium pentoxide (V2O5) flake from its Canegrass Battery Minerals Project. This marks a significant step in unlocking the potential for vanadium production at the site.
The process involved desilication, evaporation, precipitation, filtration, and calcination to produce the V2O5 flake from a vanadium-bearing solution. This success demonstrates the project's capability to produce high-value critical minerals.
Stage 3 Metallurgical Testwork
Viking Mines has commenced Stage 3 metallurgical testwork, focusing on producing a larger sample of magnetic concentrate and associated non-magnetic tail for further testing. The testwork aims to determine the practicality of separating iron and titanium, as well as producing copper, nickel, and cobalt sulphide concentrates from the non-magnetic tail.
Success in these areas could significantly enhance the project's potential cashflow generation, with multiple revenue streams available from V2O5, Fe, TiO2, Cu, Ni, and Co.
Corporate Update
As of 30 June 2024, Viking Mines maintains a strong cash position of $3.9 million. The company's focus during the reporting period was on advancing metallurgical testwork programs at the Canegrass Project. Income for the period totaled $25,000 from investing activities, primarily bank interest.
Payments to related parties amounted to $129,000, primarily comprising director fees. Exploration expenditure for the quarter totaled $239,000, with additional costs related to tenement acquisitions and general corporate expenses.
The successful production of vanadium pentoxide flake is a significant achievement for Viking Mines, potentially boosting investor confidence and enhancing the project's value. The commencement of Stage 3 testwork and the company's strong cash position are positive indicators for future growth and development.
Investor Reaction:
Analysts have reacted positively to the milestone achievement, noting the potential for multiple revenue streams from the Canegrass Project. Investors are optimistic about the project's future prospects, given the company's strategic focus and financial stability.
Conclusion:
Investors should keep an eye on the results of the ongoing Stage 3 metallurgical testwork, expected in the September quarter. Viking Mines' continued advancements at the Canegrass Project and its strong financial position make it a promising investment opportunity.