North Stanmore Drilling Update

Victory Metals Limited (ASX: VTM) is pleased provide an update on its current Aircore (“AC”) drill program at the Company’s 100% owned North Stanmore Heavy Rare Earth and Critical Defence Metal Project. To date, over 2,239m have been successfully completed in the current drill program.

Key Highlights:

• Portable x-ray fluorescence (“P-XRF”) Heavy Rare Earth Yttrium analyses recorded in clay regolith 2.6km south of the existing Mineral Resource Estimate (“MRE”) area 
• These positive Yttrium analyses are a useful HREE vector that show the potential extension of rare earth mineralisation defined in the MRE. The Company cautions that P-XRF analyses should never be considered a proxy or substitution for laboratory analyses where concentrations or grades are the factor principal economic interest. P-XRF analyses also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations.
• Shallow clay horizons consistent with previous drilling analyses have also been identified in this latest drilling program
• Drilling to the south of the MRE is now complete with drilling focused and commenced 9km to the north of the MRE area
• QA/QC data assessed during preparation of the MRE confirmed that P-XRF analyses provided reliable vectors to discriminate HREE mineralised zones that were subsequently confirmed by ICPMS analytical results

Victory’s CEO and Executive Director Brendan Clark, commented:

“The positive XRF analyses 2.6km south of our existing MRE indicate the potential for mineralisation beyond what we have already identified and provides an exciting opportunity for resource expansion."

“Drilling has now commenced 9km north of the current MRE. Shallow saprolitic clay horizons similar to those observed in previous drilling campaigns have been identified, supporting the prospect of further rare earth element (REE) mineralisation. This drilling program is part of the Company's ongoing strategy to expand its resource base and strengthen its position as a leader in the heavy rare earths sector globally and an important producer of critical defence metals such as Scandium (Sc) and Hafnium (Hf).”

I have no idea why $VTM jumped almost 15% today. There seems to be no new market announcements or click bait that i can see. No complaining of course, just curious as to what caused the sudden rush and price spike.

Drilling Commenced at World Class Heavy Rare Earth Project

Victory Metals Limited (ASX: VTM) is pleased to advise that drilling has commenced at the North Stanmore Heavy Rare Earth Elements (HREE) Project in Western Australia.1

Key Highlights:

• 5,000m AC drilling program at North Stanmore has commenced with drilling scheduled to be completed by the end of September 2024
• Drill targets range up to 9km north of the existing Mineral Resource Estimate (“MRE”) giving Victory potential to become one of the largest heavy rare earth discoveries globally
• Drilling of two further RC holes 8km south of the existing MRE area with the target displaying similar magnetic characteristics to the North Stanmore alkaline intrusion is advancing with the progression of regulatory approvals
• The project boasts a substantial combined 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”) (refer to Annexure A – MRE for category tonnes and grades)

Announcement of a share swap funding arrangement today attributed to an approx 9% fall in the share price today, but allows $VTM to quickly progress to the next critical drilling phase.

GROWING NORTH STANMORE HEAVY REE RESOURCE

Aircore drilling program set to further expand the world-class North Stanmore HREE deposit

Victory Metals Limited (ASX: VTM) (Victory or the Company) is pleased to announce the planned commencement of an expansion drilling program at its North Stanmore Heavy Rare Earth Elements (HREE) Project (North Stanmore Project or North Stanmore) in Western Australia

Key Highlights:

• Approx. 5,000m aircore drill program set to commence in September; focussed on areas of the North Stanmore tenure adjacent to the existing Mineral Resource Estimate (MRE) and up to 9km North.
• Drill program target area similar in the scale of the existing North Stanmore MRE.
• Significant MRE growth potential exists, with mineralisation open in all directions and 92% of the North Stanmore tenement area unexplored.
• Two separate RC holes to be drilled approx. 8km south of the North Stanmore MRE, with these targets exhibiting similar magnetic characteristics to the North Stanmore alkaline intrusion.
• North Stanmore Project rapidly advancing (based solely on the large-scale existing MRE), with recent submission of ML application and Scoping Study advancing.
• North Stanmore potentially forms a key part of the global drive to identify new, ethically sourced non-Chinese HREE supply options.
• Binding commitments received for $1.5M equity placement to fund these drilling activities.

To support its upcoming drilling activities and working capital (including costs of the offer), Victory has received binding commitments from professional and sophisticated investors for a Placement to raise $1,500,000 (“Placement”) through the issue of 4,545,455 fully paid ordinary shares at $0.33 per share (“Placement Shares”). The Placement shares are to be issued under the Company’s existing Placement capacity in accordance with ASX listing Rule 7.1.

The issue price of $0.33 per Placement share under the Placement represents an 8% discount to the 15-day VWAP prior to 15 August 2024. This equity injection ensures Victory’s ongoing strong financial position, allowing funding of these expansion drilling activities in parallel with rapid advancement of the North Stanmore Project.

North Stanmore Heavy Rare Earth Project Advances

Mining Licence Application Lodged

Victory Metals Limited (ASX:VTM) (Victory or the Company) is pleased to announce the submission of a Mining Licence application with Department of Energy, Mines, Industry Regulation and Safety over its 100% owned North Stanmore Heavy Rare Earth Element (HREE) project located in Western Australia, approximately 6km north of Cue, with sealed road access via the Great Northern Highway. The Mining Licence application area covers approximately 2006 hectare (ha).

Key Highlights: 

• Mining Licence application lodged for the North Stanmore Heavy Rare Earth Elements (HREE) Project, the largest ionic regolith clay hosted indicated heavy rare earth element resource in Australia.
• The Mining Licence application underpins the Company's strategic development plans, including advancing discussions for partnership and offtake agreements.
• The project boasts a substantial Mineral Resource Estimate (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 near-surface high-grade domain of 45.9 million tonnes at 1,050 ppm TREO supports rapid development for the global supply of critical materials.
• 92% of Victory’s tenement area contiguous with North Stanmore deposit hosting exploration potential with mineralisation open in all directions.

Victory’s CEO and Executive Director Brendan Clark, commented: “Lodging the Mining Licence application for our North Stanmore heavy rare earth project marks a pivotal moment in Victory Metals journey. This step not only confirms our commitment to advancing this world-class resource but also positions us strategically to contribute significantly to the global supply of critical materials essential for the energy transition and national defence. Our focus now is on finalising the scoping study and accelerating partnerships that will potentially bring this project to fruition, ensuring a steady supply of ethically sourced rare earths."

Oversubscribed $2.5M Placement to rapidly advance our 100% owned Heavy Rare Earth Element Project

Highlights

• •
• Successful oversubscribed placement to raise an amount of $2,500,000
• •
• Proceeds to be utilised to further advance North Stanmore, Australia’s largest Heavy Rare Earth project situated adjacent to the Great Northern Highway in Cue, Western Australia

ADDITIONAL FUNDING, HERITAGE SURVEY & JORC RESOURCE

Highlights:

• Victory to receive $895,227 following the conversion of unlisted options by the Non-Executive Chairman and founding shareholders of the Company.
• Heritage survey over an area of approximately 25km² across newly granted tenements was recently completed for the next phase of exploration drilling at North Stanmore.
• The maiden JORC Mineral Resource Estimate (MRE) is on track to be delivered this month.

RARE EARTH FEED GRADES INCREASED BY UP TO 148% 

• Metallurgical beneficiation testwork shows North Stanmore clay samples are highly 

amenable to upstream beneficiation, which has the potential to significantly reduce 

downstream processing costs and capital costs per product tonne.

• Average TREYO head grade across 31 samples increased from 1308 ppm to 2192 ppm

through rejecting +20 µm coarse material.

• Size by assay analysis shows that up to 70% of rare earths are hosted in the fine -20 

µm size fraction, in as low as 28% of the total mass.

• Beneficiation testwork on a composite of 31 samples from within the pending initial 

JORC Mineral Resource Estimate area shows rejecting the +20 µm coarse fraction 

results in an average REE upgrade of 68%, with corresponding REE recovery of 58%

and mass rejection of 66%.

• Stage 2 metallurgical testwork program is well underway which includes flow sheet 

design to produce a mixed rare earth carbonate (MREC) as the end product.

HIGH GRADE RARE EARTH EXTENSION CONFIRMED BY ASSAYS

Highlights

• A further 113 samples across 27 AC holes report high grade Rare Earth Element (REE) ionic clay-hosted mineralisation
• Total Rare Earth Oxide (TREO) grades up to 5239ppm (NSE013) from the latest drilling program which is situated over 6.25km North of Victory’s initial REE Discovery
• Latest assays confirm a valuable Heavy Rare Earth Elements ratio of 38% HREO/TREO and critical magnet metals NdPr + DyTb ratio of 21% of total REE’s
• Mineralisation open in all directions
• Highest REE grade at North Stanmore 9746ppm TREO (NSTAC032)
• Average grade from assays is 1001ppm TREO from 1m samples received by the Company (cut-off greater than 500ppm TREO)
• A majority of the samples report negative Ce anomalies, confirming similarity with global ion adsorption REE regolith deposits
• Notable intersections from North Stanmore including latest assays results:
• 32m at 1047ppm TREO from 36m (NSTAC004) including,
• 12m at 2038ppm TREO, and
• 8m at 2467ppm TREO from 48m
• 16m at 2155ppm TREO from 21m (NSTAC032) including,
• 6m at 4683ppm TREO, and
• 2m at 9681ppm TREO
• 12m at 1316ppm TREO from 24m (MAFAC019)
• 10m at 1012ppm TREO from 29m (NSTAC028)
• 9m at 1151ppm TREO from 21m (NSTAC098)
• 7m at 1381ppm TREO from 49m (NSE012)
• 5m at 2050ppm TREO from 51m (NSTAC131)
• 2m at 3976ppm TREO from 52m(NSE013) including 1m at 5239ppm
• Extensive continuation of high grade and valuable Scandium (Sc2O3) up to 123ppm (NSTAC028) and 6m at 71ppm from 17m (NSTAC024)
• Scandium is essential for manufacturing Al-Sc alloys in fighter jets and hydrogen fuel cells with demand growing due to geo-political instability
• Latest assays continue to confirm very low contents of radioactive elements of Thorium (Th) 6ppm and Uranium (U) 2ppm
• An RC infill drilling program of approximately 5,000m is to commence immediately and is designed for the preparation of a JORC Mineral Resource estimate
• Samples dispatched for the commencement of metallurgical studies