North Stanmore Project Boasts Up to 83% Heavy Rare Earth Ratios Amid Price Surge

Strategic Heavy Rare Earth Discovery

Victory Metals Limited (ASX, VTM) has announced a significant breakthrough at its flagship North Stanmore project in Western Australia, revealing multiple ultra-high heavy rare earth oxide (HREO) zones. These zones exhibit world-class heavy rare earth ratios, reaching up to 83% HREO relative to total rare earth oxides (TREO), among the highest reported globally. This discovery underscores North Stanmore’s potential as a critical supplier of heavy rare earth elements essential for defence and high-tech industries.

The timing could not be more opportune. European prices for key heavy rare earths such as yttrium have surged by as much as 800% compared to figures used in Victory’s earlier scoping study, with dysprosium and terbium prices more than doubling. This price escalation dramatically enhances the project’s economic outlook and strategic importance.

Optimising Development with Targeted Zones

Victory’s technical team, supported by consultants MEC, has delineated 26 high-value zones within the North Stanmore resource, most situated in the indicated category. These zones are being prioritized in the company’s advancing pre-feasibility study, aiming to focus mining and processing on the richest heavy rare earth areas. By concentrating on these zones, Victory expects to deliver the same volume of critical metals to market while processing only 30% of the material previously considered necessary. This approach promises substantial reductions in capital expenditure (CAPEX) and operating costs (OPEX), improving project viability.

CEO Brendan Clark highlighted the strategic advantage, "Our extraordinary heavy rare earth ratios set North Stanmore apart. By targeting these ultra-high zones, we can efficiently supply critical metals with a smaller plant footprint and lower costs, positioning Victory as a globally significant supplier."

Expanding the Resource with a Major Drilling Program

To build on these promising results, Victory has planned a 10,000-metre aircore drilling program designed by MEC to explore further high-grade zones along a 10-kilometre strike length. Early spaced drilling has already identified assays with total rare earth oxide concentrations up to 10,179 ppm and HREO/TREO ratios as high as 80%. The upcoming drilling will test extensions north of the indicated resource, where initial results suggest the potential for continued high-grade mineralization.

The drilling will be conducted by BOSTECH, a Perth-based contractor known for minimal environmental impact, using state-of-the-art rigs and rehabilitation practices. This program is funded by a recent $11.5 million institutional placement, reflecting strong investor confidence in Victory’s strategy and asset quality.

Positioning Amid Global Supply Dynamics

North Stanmore’s location in a stable, mining-friendly jurisdiction adds to its appeal amid growing geopolitical tensions affecting rare earth supply chains. While companies like Lynas Rare Earths dominate the light rare earth market, a looming deficit in heavy rare earth supply presents a strategic opportunity for Victory. The project’s rich heavy rare earth content, including dysprosium, terbium, yttrium, scandium, hafnium, lutetium, and thulium, aligns well with Western demand for secure, diversified sources of these critical materials.

Victory’s recent Mineral Resource Estimate totals over 320 million tonnes with an average heavy rare earth oxide grade of 179 ppm, making it Australia’s largest indicated clay heavy rare earth resource. This scale, combined with the high-grade zones, positions North Stanmore as a cornerstone project in the global rare earths landscape.