Victory Metals (ASX:VTM) has announced it will kick off a 5,000m aircore drill run in September, intended to boost the heavy rare earth element (HREE) resource for its North Stanmore project – news that’s seen shares dip more than -8% to 37cps.
Drilling will target an area that comes close to matching the scale of that already contained in the existing Stanmore mineral resource estimate (MRE). Victory sees “significant growth potential.”
The company stated on Friday 92% of the overall North Stanmore tenement area remains unexplored, underscoring why drillers are eager to see what else is around on-site in these early stage years.
Despite this, the company reports its project is “rapidly advancing” based solely on the existing resource. That might be understandable, given HREEs are the latest batch of metals to come into mainstream focus thanks to the larger spotlight of Australia’s attempts to wean off reliance on China for critical minerals.
To that end, Victory is already working on a scoping study.
“North Stanmore potentially forms a key part of the global drive to identify new, ethically sourced non-Chinese HREE supply options,” the company reported on Friday. China dominates the rare earth supply chain globally, but multiple countries have ore.
“In terms of delivering long-term output scale with multi-generational life potential, and strategic supply implications, this is simply too good an opportunity not to pursue,” Victory CEO Brendan Clark said.
“We believe the Scoping Study currently in progress will enunciate the clear potential of this resource to deliver future Australian production of high-value, critical materials required for the global energy transition, defence industries and beyond.”
Despite polished commentary from management, investors weren’t so sure. The company’s shares dipped more than -8% in the first hour of trade.
Additional to next month’s aircore campaign, an RC rig will drill two separate drillholes 8km south of the existing North Stanmore MRE chasing after electromagnetic targets of interest.
VTM last traded at 37cps.