Nov 6, 2024

Victory Metals Extends North Stanmore HREE Strike to 13.5km, Western Australia

Introduction:

Victory Metals Limited (ASX: VTM) has reported significant results from its 3,681m air core (AC) drilling program at the North Stanmore Heavy Rare Earth Elements (HREE) Project in Western Australia, extending the mineralized strike to 13.5km and confirming high-grade HREE and scandium mineralization.

Drill Results:

2700ppm TREO from 24m (1.8km south of July MRE) [AC0011]
1405ppm TREO from 22m (8km north of July MRE) [AC0083]
3174ppm TREO from 45m (within MRE update area) [AC0097]
2425ppm TREO from 42m (within MRE update area) [AC0043]
1829ppm TREO from 15m (within MRE update area) [AC0028]
1741ppm TREO from 20m (within MRE update area) [AC0015]

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Project Overview:

The North Stanmore Heavy Rare Earth Elements Project is located in the Cue Region of Western Australia, approximately 665 km from Perth. The project area hosts one of the largest Indicated Mineral Resources of Australian HREE-dominant deposits, with a current MRE of 235 million tonnes including 79,200 tonnes of Total Rare Earth Oxides (TREO) and 28,000 tonnes of Heavy Rare Earth Oxides (HREO).

The project is situated in a tier-1 mining jurisdiction with established infrastructure. Victory Metals is focused on rapidly advancing North Stanmore to become a potential global supplier of ethically sourced clay-hosted heavy rare earths.

Program Details:

The recently completed 3,681m air core drilling program targeted extensions to the known mineralization. Approximately 65% of assays have been received to date, confirming high-grade HREE and scandium mineralization over the extended 13.5km strike length. The program has identified new high-grade zones both north and south of the existing Mineral Resource Estimate area. Results show outstanding Heavy Rare Earth Oxide concentrations, with average HREO/TREO ratios of 41% and up to 75% in some intercepts.

Understanding These Results:

The reported Total Rare Earth Oxide (TREO) grades represent the sum of all rare earth oxides, including both light and heavy rare earths. Higher TREO values indicate more concentrated rare earth mineralization. The Heavy Rare Earth Oxide (HREO) to TREO ratios are particularly significant, with values up to 75% indicating a very high proportion of the valuable heavy rare earths in the overall rare earth content.

These results extend the known mineralization significantly beyond the current resource envelope, with high-grade intercepts up to 8km north and 1.8km south of the existing Mineral Resource Estimate. The consistency of mineralization over this expanded strike length suggests potential for a substantial increase in the project's resource base.

Management Commentary:

Brendan Clark, CEO and Executive Director of Victory Metals, stated:

"Given the size of the North Stanmore intrusion magnetic anomaly, we knew there was significant potential for rare earth element (REE) mineralisation beyond the current Mineral Resource Estimate (MRE) area, and the scale of what we’ve now uncovered is impressive. These additional high-grade zones are set to add real value to the Scoping Study, with potential benefits like extending the mine-life and further improving project economics.

“We’re incorporating these new assay results into an updated MRE, which means we’re aiming to complete the Scoping Study by Q1 2025. I want to reassure our shareholders that progress is significant, and this timeline adjustment is all about ensuring we deliver a high-quality, impactful study right from the start.

“In a world where heavy rare earths are critical for energy, technology, and defence, our project is perfectly positioned to meet the increasing demand. The consistency and grade of our mineralisation give us great confidence as we advance the MRE and move into the next phase of development.”

Next Steps & Catalysts:

Victory Metals has appointed MEC Mining to undertake an update of the July 2024 MRE for the North Stanmore Heavy Rare Earth Project. This update is anticipated to deliver an uplift in the resource, with the addition of further inferred tonnage and some conversion to indicated resources. The company will focus on identifying additional high-grade domains within the project area.

The updated MRE is expected to be completed by December 2024 and will be incorporated into the ongoing scoping study. The company aims to complete the Scoping Study by Q1 2025, with the timeline adjustment ensuring a high-quality, impactful study.

Commodity Outlook:

Heavy rare earth elements and scandium are critical for advanced technologies in energy, defense, and electronics sectors. With global demand increasing and current supply dominated by China, Victory Metals is positioned to become a significant supplier of ethically sourced, clay-hosted heavy rare earths. The project's potential for scandium production further enhances its strategic importance in the critical minerals market.

Conclusion:

The latest drilling results from North Stanmore have significantly expanded the project's mineralized footprint to 13.5km strike length. With high-grade HREE mineralization confirmed over this extensive area, Victory Metals is well-positioned to potentially increase its resource base and advance towards becoming a key supplier of critical heavy rare earth elements and scandium. The upcoming MRE update and scoping study are important near-term catalysts that could further demonstrate the project's economic potential.

Sources:

VTM Drill Results Announcement

Additional Figures:

Australia

ASX

Gold

Nov 5, 2024