Victory Metals’ North Stanmore: Another Resource Boost for Heavy Rare Earths

The global demand for heavy rare earth elements (HREEs) is surging, driven by the clean energy transition and the increasing reliance on high-tech applications. As the world races towards a sustainable future, the need for materials like dysprosium and terbium, crucial for manufacturing high-performance magnets, has never been greater. Victory Metals (ASX:VTM) is positioning itself as a key player in this critical market, and recent developments at its North Stanmore project in Western Australia underscore its potential. The latest resource upgrade reveals ultra-high, heavy rare earth ratio zones of up to 83%.

The Rising Tide of Heavy Rare Earth Demand

The rare earth metals market is projected to reach 260.36 kilotons by 2030, expanding at a CAGR of 5.80% from 196.63 kilotons in 2025. This growth is fueled by the demand for clean-energy technologies, consumer devices, and defense platforms. Electric vehicles (EVs), in particular, are a major driver, threatening to outstrip current neodymium and praseodymium production by 2036 if new capacity or large-scale recycling initiatives fail to materialize.

HREEs like dysprosium (Dy) and terbium (Tb) are essential for enhancing the durability of magnets used in EVs and wind turbines. These elements allow magnets to operate at higher temperatures without losing their magnetic properties, making them indispensable for high-performance applications.

Victory Metals: A Strategic Asset in the HREE Landscape

Victory Metals’ North Stanmore project is strategically located in Western Australia and is 100% owned by the company. The project is approximately 6km north of Cue, with sealed road access via the Great Northern Highway. North Stanmore is emerging as a standout, low-cost heavy rare earth element producer.

The company’s focus on HREEs is particularly significant given that these elements are more valuable than other rare earth metals due to their higher magnetic qualities and energy intensity. Victory Metals has successfully produced a mixed rare earth oxide product containing 94 per cent of TREO from North Stanmore.

Resource Upgrade: A Game Changer

Victory Metals has announced a significant upgrade to the Mineral Resource Estimate (MRE) at North Stanmore. The resource update incorporates results from a targeted 79 drillhole 3,221m, air-core drilling campaign, delivering a 29.5% increase to 320.6 million metric tonnes at 510 ppm total rare earth oxide (TREO) and high HREO/TREO of 39% (inferred and indicated). The ultra-high heavy rare earth ratio zones identified from across the resource area include:

83% HREO/TREO at 1,726ppm
81% HREO/TREO at 3,584ppm
80% HREO/TREO at 10,179ppm
76% HREO/TREO at 2,890ppm
75% HREO/TREO at 4,423ppm

This upgrade, achieved through a targeted drilling campaign, positions Victory as a leading low-cost producer in the Australian heavy rare earth market. The updated MRE will support ongoing funding discussions and the upcoming Prefeasibility Study.

CEO Brendan Clark noted that the resource upgrade reinforces the immense scale and strategic importance of North Stanmore. He highlighted that the 29.5% increase was achieved from a small, low-cost 3221m air core program, which “speaks volumes about this deposit.”

Economic Advantages and Future Prospects

A Scoping Study for the North Stanmore HREE Project, released in March 2025, highlighted a unique opportunity to establish a long-term, low-cost supply of critical minerals. The study confirmed North Stanmore’s significant economic and environmental advantages over conventional rare earth projects. Key highlights of the Scoping Study included:

Robust estimated net present value (NPV) across multiple pricing scenarios
8Mtpa throughput due to the shallow nature of the mineralisation and favourable weather conditions
31-year mine life with 72% of the resource being in the Indicated category and 28% being in the Inferred category
Low OPEX of approximately AUD $25.5 per ROM tonne over the life of mine (LOM)
Outstanding metallurgical recovery of 94% for magnet rare earth oxide (MREO)

The mineralisation remains open, highlighting the opportunity to target the ultra-high heavy rare earth ratio zones through satellite pits. The latest drilling program has proven a low-cost significant resource increase equating to $3500 all-in exploration costs per 1 million tonnes of resource added (inferred & indicated).

Applications of Heavy Rare Earth Elements

HREEs are essential in various high-tech applications:

Magnets: Dysprosium and terbium are added to neodymium magnets to increase their operating temperature range, making them suitable for EVs and wind turbines.
Electronics: Terbium is used in terbium phosphors for flat screen displays and trichromatic fluorescent bulbs.
Medical: Dysprosium is used in injections for rheumatoid arthritis patients. Yttrium-90, a radioactive isotope, is used to make needles for surgeons to kill pain-transmitting nerves in the spinal cord.
Defense: HREEs are critical in modern defense systems and military equipment such as radar, guidance systems, precision-guided munitions, lasers, satellites, and night vision goggles.

Navigating the Rare Earths Market

The rare earths market is influenced by geopolitical tensions and Chinese production trends. China maintains a strong influence over rare earth pricing, with most international prices being based on Chinese domestic pricing. As such, supply chain risks and geopolitical realities play a significant role in shaping the market.

Concerns about supply security for medium-heavy elements are growing, leading to strategic stockpiling by end-users. Limited new production sources and increasing technological demand further contribute to the upward momentum of medium-heavy rare earth prices.

Conclusion: A Promising Outlook for Victory Metals

Victory Metals’ North Stanmore project is poised to become a significant contributor to the global supply of heavy rare earth elements. The recent resource upgrade, coupled with the project’s economic advantages and strategic location, positions Victory Metals as a key player in the HREE market. As the demand for HREEs continues to rise, Victory Metals is well-positioned to capitalize on this growing market and contribute to a sustainable future.

The company’s commitment to respecting heritage protocols and engaging with the Traditional Owners further underscores its responsible approach to resource development. Victory Metals is not only focused on extracting valuable resources but also on ensuring that its operations are conducted in an ethical and sustainable manner.