North Stanmore’s Heavy Rare Earth Upgrade Raises Stakes Amid Market Uncertainties

A Significant Leap for North Stanmore

Victory Metals Limited (ASX: VTM) has delivered a transformative update to its North Stanmore Heavy Rare Earth Elements (HREE) Project in Western Australia, announcing a substantial upgrade to its Mineral Resource Estimate (MRE). The new estimate totals 247.5 million tonnes at 520 ppm Total Rare Earth Oxide (TREO), with an impressive 71% now classified as Indicated resources. This upgrade underscores the continuity and robustness of mineralisation at North Stanmore, reinforcing its status as a globally significant heavy rare earth clay deposit.

The project’s high-grade near-surface zone has also expanded markedly, now standing at 53 million tonnes at 1,012 ppm TREO. This expansion provides a solid foundation for the project's forthcoming development phases and complements the advanced Scoping Study expected in the first quarter of 2025.

Heavy Rare Earths and Scandium: Strategic Assets

North Stanmore continues to distinguish itself with consistently high ratios of Heavy Rare Earth Oxides (HREO) to TREO, maintaining a ratio of approximately 38% in the Indicated category. This is a critical metric, as heavy rare earths such as dysprosium and terbium are essential for high-performance magnets and other advanced technologies, particularly in clean energy and defense sectors.

In addition, the project’s scandium resource has increased, adding a valuable critical mineral to the portfolio. Scandium's rising demand is driven by its applications in solid oxide fuel cells and aerospace-grade aluminum alloys. With scandium oxide prices exceeding $1,300 per kilogram, this element could become a significant economic contributor to North Stanmore’s future operations.

Geological and Metallurgical Confidence

The North Stanmore deposit extends over a strike length of 13.5 kilometres and remains open in all directions, offering substantial exploration upside. The mineralisation occurs in a flat-lying saprolite-rich clay horizon, amenable to open-pit mining methods. Victory Metals has completed extensive drilling, 755 holes totaling over 42,000 metres, and rigorous sampling and assay protocols, ensuring high confidence in the geological model.

Metallurgical test work has been promising, with beneficiation and leach tests achieving high recoveries of key rare earth elements. Notably, praseodymium and neodymium recoveries reached 94%, while terbium and dysprosium achieved over 90%. Scandium recoveries are currently at 50%, with ongoing optimisation efforts. These results support the project's reasonable prospects for eventual economic extraction.

Strategic Location and Infrastructure

Located approximately 6 kilometres north of Cue in Western Australia, North Stanmore benefits from excellent infrastructure connectivity. The project is accessible via sealed roads from the Great Northern Highway, linking it to Geraldton Port, 420 kilometres away. This logistical advantage enhances the project's development potential and attractiveness to investors and off-takers.

Looking Ahead

Victory Metals’ CEO Brendan Clark emphasised the strategic significance of the updated MRE, highlighting the project's potential to become one of the largest contiguous clay-hosted heavy rare earth deposits globally. The upcoming Scoping Study will integrate these new resource metrics and metallurgical insights, providing a clearer picture of North Stanmore’s economic and technical feasibility.

As global demand for critical minerals intensifies, particularly for clean energy and defense applications, North Stanmore’s enhanced resource base and high heavy rare earth content position Victory Metals as a key player in the sector. Investors and industry watchers will be keenly awaiting the Scoping Study results and further exploration updates.