Victory Metals’ scoping study for the North Stanmore rare earth project in Western Australia has affirmed the project’s potential as one of the largest such developments in the world.
Located in a Tier-1 mining jurisdiction the mid-west region of WA and with strong state and federal backing, North Stanmore can supply critical minerals essential for renewable energy, electric vehicles and defence applications.
“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 (CEO) 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 [NPV] exceeding $1212m and a very high internal rate of return, reinforcing the project’s strong financial viability and low-cost advantage.”
Victory has also signed a non-binding memorandum of understanding with Fortune 500 company Sumitomo Corporation to negotiate a potential offtake agreement.
The North Stanmore scoping study, led by engineering consultancy Mincore, indicates a 31-year mine life based on throughput of eight million tonnes per annum. Financial modelling shows a post-tax NPV of $1.212 billion with a 52 per cent IRR [internal rate of return] based on “conservative” price assumptions.
According to Victory, lower capital expenditure of around $337 million at North Stanmore is supported by existing infrastructure, no need for haul roads or transient camps, and favourable geological conditions delivering low operating costs of $25.5 per tonne.
“Heavy rare earths, particularly dysprosium and terbium, along with emerging defence metals such as scandium and hafnium, are in growing global demand due to their critical importance and emerging supply constraints,” Clark said.
“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.”
With metallurgical recovery rates of 94 per cent for magnet rare earth oxide and successful separation of scandium and hafnium, Victory is targeting a high-value, heavy rare earth-enriched product to meet growing global demand and secure supply outside China.
Want to connect with the mining industry, register to attend AIMEX and WA Mining Conference.
