Moving Quickly To Test New First Hit Acquisition
Viking Mines Limited (ASX:VKA) has received shareholder approval to finalise completion of the transaction with Red Dirt Mining Pty Ltd to acquire the high-grade First Hit Gold Mine located 150km NW of Kalgoorlie in Western Australia. As a result of the transaction, Red Dirt becomes a wholly owned subsidiary of Viking.
In parallel with the transaction, Viking has been working closely with CSA Global to develop an understanding of the mineralisation and historical mining activity associated with the First Hit gold mine. Data compilation, lode evaluation and drill programme planning has been completed to test for extensions from known mineralisation positions and along the regionally prospective First hit structure.
Viking’s Chairman, Ray Whitten, said multiple work programmes have commenced to rapidly assess and test the First Hit project area.
These work programmes have commenced in parallel to gain an understanding of the geology and testing the underground mine extensions at the First Hit gold mine, as well as to commence exploration for additional parallel mineralised gold shoots across the landholding.
“This has been a transformational acquisition for Viking Mines,” Mr Whitten said.
“I am extremely happy that the company has been able to acquire the high- grade First Hit Gold Mine as part of the Red Dirt Project package.
“This represents an excellent opportunity to add development assets (and ounces) to Viking’s existing greenfield exploration portfolio of mineral projects.
“The company has wasted no time in appointing a very well credentialed CEO to drive VKA forward and we are looking forward to advancing the multi-staged drilling programmes in the coming months.”
A thorough evaluation of the First Hit historical mining operation is underway, with Viking gaining significant improvements in knowledge and understanding of the tenor of mineralisation and lode structure in 3D. The extent of the mined workings from underground have been digitised to allow effective drillhole planning to test the unmined mineralisation.
A detailed tenement wide 5,000 scale geological interpretation is underway using the historical 25m airborne geophysics and other remote sensing datasets. This geological interpretation will allow identification of structures and bedrock geology which will be used to plan regional AC drill programmes. The knowledge will also be used to assist in future step out diamond drill programmes.
A preliminary evaluation of the regolith geology and geochemistry has commenced with the primary objective of gaining a comprehensive understanding of the regolith composition. The purpose is to determine where previous exploration has been effective in identifying anomalies for bedrock testing and which areas require further work. A regolith model will be produced on completion of the regional AC programme.
Mr Whitten said that all activity in the coming months will be focused on rapidly advancing the high grade gold project at First Hit and advancing exploration activity on the recently acquired surrounding tenement.
