Viking Mines (ASX:VKA) has defined a mineral resource estimate of 83,800 tonnes @ 7 grams per tonne gold for 19,000 contained ounces for the historical First Hit Gold Mine in Western Australia.
The MRE, completed by MEC Mining, represents the remaining mineralisation at the mine after accounting for mining depletion from when the mine was last operating in 2002.
When First Hit was last in operation, the gold price was sitting at US$325 ($523.98) per ounce. Today (20 January), gold’s price is sitting at $4,357.26 per ounce.
CEO Julian Woodcock says the gold mineral resource, combined with the existing underground infrastructure, proximity to several operating mills and the current record gold price environment provides optionality to be assessed by Viking.
“We will continue to assess the asset and the opportunities it brings, in parallel with the ongoing regional exploration program that is currently underway,” Woodcock says.
Viking Mines, which has a market capitalisation of $11.95 million, intends to begin further assessments to determine potential strategies to extract value from the resource.
The company plans to assess opportunities at depth with the aim of defining a JORC exploration target for down-dip extensions of the orebody, as well as determine de-watering and rehabilitation costs to gain access to the underground workings.
Viking Mines will also determine high level estimates of underground mining and operating costs, alongside reviewing options to conduct a minable shape optimiser evaluation on the MRE. This will allow the company to determine which portions of the resource could be mined economically using underground mining methods.
Further, the company will complete a phase-one regional exploration program to target new discoveries over greenfield targets on existing tenements.
The First Hit Gold Project is centred around the historical First Hit Mine which sits along the Ida and Zuleika Shear zones in the Eastern Goldfields of Western Australia. The project, which covers 479.9km2, comprises 12 licences and three licence applications.
Viking Mines is a Western Australian mineral explorer focused on its First Hit and Canegrass Battery Minerals projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Viking Mines
