VHM Confirms 890Mt Resource and 220Mt Ore Reserve at Goschen Project

Overview of the Update

VHM Limited (ASX, VHM) has released a comprehensive update to its Mineral Resource and Ore Reserve estimates for the Goschen Project in Victoria, Australia. The company confirms a substantial total Mineral Resource of 890 million tonnes at 2.9% total heavy minerals (THM), equating to 26 million tonnes of heavy minerals. Ore Reserves are estimated at 220 million tonnes at 3.6% THM, containing 7.8 million tonnes of heavy minerals. This update reflects ongoing evaluation and a more conservative approach to the Area 1 resource, aiming to enhance the robustness of the mine plan while preserving upside potential.

Conservative Approach to Area 1

The key technical change in this update is the restatement of the Area 1 Mineral Resource and Ore Reserve estimates. VHM has adopted standard geostatistical methods without incorporating metallurgical factors from earlier bulk sampling, resulting in a more geologically robust and conservative estimate. This approach reduces risk in the mine plan and aligns with industry best practices, although it retains the potential upside indicated by previous bulk sampling test work. The updated Area 1 Ore Reserve totals 47 million tonnes at an average grade of 3.3% THM, split between 16 million tonnes of Proven Reserve and 31 million tonnes of Probable Reserve.

Significant Growth Potential

Despite the scale of the current resource and reserve base, the existing 20-year mine plan exploits less than 50% of the Ore Reserves and only about 12% of the total Mineral Resources. This leaves considerable scope for resource expansion and mine life extension. VHM plans to pursue systematic exploration across its tenements, including Areas 2, 3, 4, Cannie, and Nowie, with the aim of upgrading Inferred Resources and converting them into Ore Reserves. Strategic studies and permitting efforts are underway to incorporate additional high-grade reserves, particularly in Area 4, into future mine plans.

High-Value Mineral Assemblage and Strategic Location

The Goschen Project hosts a diversified mineral assemblage, including elevated concentrations of rare earth-bearing minerals such as monazite and xenotime, alongside zircon, rutile, and ilmenite. This mix supports multiple revenue streams across industrial sectors, particularly in clean energy and technology markets where demand for critical minerals is rising globally. The project benefits from a low sovereign risk environment, situated in Victoria with strong government backing and proximity to established infrastructure, including road, rail, power, and water.

Technical Rigor and Environmental Considerations

The updated estimates are supported by extensive drilling campaigns, including 472 aircore holes in Area 1, and rigorous sampling and assay protocols. Metallurgical testwork confirms the amenability of the mineral assemblage to standard processing techniques. Environmental approvals have been secured for parts of the mining leases, with ongoing consultation to expand project footprints. Waste materials are managed responsibly, and potential radioactivity in some products will be handled according to regulations.

Outlook

VHM’s updated resource and reserve statement underscores the Goschen Project’s status as one of Australia’s largest undeveloped mineral sands and rare earths projects. The conservative approach to Area 1 enhances confidence in near-term development, while the substantial unexploited resource base offers a platform for long-term growth. The company’s alignment with global critical mineral demand trends positions it well for future market opportunities.