Victory Metals Achieves 59-Fold Upgrade to 7.1% TREO Concentrate

Pilot Plant Demonstrates Significant Concentrate Upgrade

Victory Metals (ASX:VTM) has taken a substantial step forward in its North Stanmore heavy rare earth project, achieving a 59-fold upgrade to a 7.1% Total Rare Earth Oxide (TREO) concentrate. This result was achieved through its newly commissioned continuous flotation pilot plant in Perth, which processed a composite feed from 25 drill holes, delivering a concentrate with approximately 40% heavy rare earth oxides, including premium elements dysprosium (2,777ppm), terbium (479ppm), and yttrium (1.77wt%).

The pilot plant, officially opened by Federal Minister for Resources Hon Madeleine King MP, operates at roughly 12 times the scale of previous test work, marking a critical advance beyond bench-scale validation. This continuous operation confirms that North Stanmore's heavy rare earths can be concentrated using a simple, low-cost flotation circuit, a key advantage over many other rare earth deposits.

Strategic and Processing Optimisations Reduce Costs

Victory has finalised key metallurgical testwork inputs for its Pre-Feasibility Study (PFS), revealing significant potential reductions in both capital expenditure (CAPEX) and operating expenditure (OPEX). The company identified an alternative flotation reagent that halves reagent costs while delivering superior metallurgical performance. Additionally, processing at ambient temperature eliminates the need for heating systems, further reducing CAPEX and energy costs.

Clay filtration testwork also showed excellent results, enabling dry stacking of tailings and offering a more cost-effective and environmentally friendly tailings management solution compared to traditional wet storage. These optimisations collectively point to a smaller, simpler hydrometallurgical plant than initially envisioned, with lower capital and operational footprints.

Key Partnerships and Approvals Advance Project Development

On the strategic front, Victory was accepted into the US Defense Industrial Base Consortium (DIBC), granting direct access to the US defence procurement ecosystem amid growing efforts to secure non-Chinese sources of heavy rare earths. CEO Brendan Clark highlighted this as a significant milestone, positioning Victory well within critical mineral supply chains.

Victory also executed a Native Title Mining Agreement with the Wajarri Yamaji Aboriginal Corporation, securing Traditional Owner consent and land access; an essential step toward the grant of a mining licence for North Stanmore. Furthermore, the company secured a $350,000 Resources Technology and Critical Minerals (RTCM) Trailblazer grant, facilitating a two-year collaborative research program with Curtin University focused on optimising recovery and separation of high-value heavy rare earths.

Offtake Engagement and Financial Position

Following the pilot plant success, Victory dispatched heavy rare earth concentrate samples to potential offtake partners across Australia, Japan, and the United States for independent qualification. This standard industry step aims to verify concentrate quality and consistency ahead of finalising commercial agreements.

Financially, the company ended the quarter with approximately $11.18 million in cash, after investing over $1 million in exploration and metallurgical activities, including pilot plant commissioning and PFS testwork. Operating costs remained controlled, with administration expenses of $484,000 and related party payments of $132,000 for director and corporate services.