A scoping study for Victory Metals’ North Stanmore rare earths project in Western Australia has identified “significant economic and environmental advantages over conventional rare earth projects”.
Located approximately 6km north of Cue, North Stanmore recently defined one of its four exploration targets as 100–230 million tonnes (Mt) grading 330–600 parts per million (ppm) total rare earths oxide (TREO) plus scandium oxide.
The exploration target sits outside the project’s current mineral resource estimate (MRE) of 247.5Mt at 520ppm TREO, which used an economic cut-off grade of 330ppm TREO and scandium oxide.
The new scoping study was completed to demonstrate North Stanmore’s strong economic potential, low capital intensity, and strategic advantages as a future critical minerals supplier.
The study found that North Stanmore has a 31-year mine life, with 72 per cent of the resource falling under the indicated category, and an eight million tonnes per annum throughput due to the shallow nature of the project’s mineralisation.
Other findings from the study include:
- an internal rate return of 52 per cent
- $11.8 billion in revenue over the life of mine
- lower capital expenditure (CAPEX) costs due to access to existing infrastructure
- approximately $25.5 per run-of-mine (ROM) tonne in operating expenses over the life of mine
- a 94 per cent metallurgical recovery for magnet rare earth oxide
- the existing MRE is expected to grow, with mineralisation remaining open in all directions.
“The completion of our scoping study is a defining milestone for Victory Metals, confirming North Stanmore as a world-class heavy rare earth and scandium project with outstanding economics,” Victory chief executive officer and executive director Brendan Clark said.
“The study delivers an exceptional robust case even based on Adamas Intelligence lower case price forecast, with a net present value exceeding $1.2 billion and a very high internal rate of return, reinforcing the project’s strong financial viability and low-cost advantage.”
Clark said demand for rare earths like dysprosium and terbium, as well as scandium and hafnium are forecast to increase due to being critical components in the defence industry.
“As industries increasingly look for sustainable, high-performance and defence materials, the outlook continues to strengthen in these markets, presenting another compelling and diversified off-take opportunity for Victory Metals,” Clark said.
“The combination of a globally significant resource, low CAPEX and strong market fundamentals sets North Stanmore apart as a unique and highly strategic project.
“We are now focused on advancing towards production while continuing discussions with potential partners to further de-risk development and maximise shareholder value.”
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