Victory Metals Delivers Standout PFS for North Stanmore Heavy Rare Earth Project
This article is disseminated on behalf of Victory Metals Limited
- Standout economics: The North Stanmore PFS delivers a post-tax NPV of A$1.21B and 240% IRR from just A$155M initial capex, with payback in ~1.5 years and A$6.5B life-of-mine revenue over a 20-year project.
- Major resource upgrade: Maiden 47Mt Probable Ore Reserve and a maiden 70.7Mt Measured category lift Measured & Indicated Resources to 154.8Mt, with the base-case production schedule underpinned 100% by Reserves.
- Rare heavy rare earth exposure: Pilot plant concentrate grades ~7.1% TREO with a 40% HREO/TREO ratio — rich in dysprosium, terbium and yttrium — positioning VTM as a low-cost ex-China supply option, backed by a US EXIM LoI for up to US$190M.
Victory Metals Delivers Standout PFS for North Stanmore Heavy Rare Earth Project
Victory Metals (ASX: VTM) has released the Pre-Feasibility Study for its 100%-owned North Stanmore Heavy Rare Earth Project near Cue, Western Australia, alongside a maiden Ore Reserve and an updated Mineral Resource Estimate — and the numbers are hard to ignore.
The PFS outlines a 20-year development case generating A$6.5 billion in life-of-mine FOB revenue from an initial capital outlay of just A$155 million. On a post-tax basis, the project delivers an NPV of A$1.21 billion and an IRR of 240%, with payback in roughly 1.5 years. Pre-tax, the NPV rises to A$1.76 billion at a 338% IRR.
"The numbers speak for themselves," said CEO and Executive Director Brendan Clark. "With initial capital of just A$155 million, the PFS delivers a pre-tax NPV of A$1.76 billion and pre-tax IRR of 338%, with payback in just 1.5 years. These are exceptional returns for a critical minerals project of this scale."
A Bigger, More Confident Resource
The updated August 2026 Mineral Resource Estimate introduces a maiden 70.7Mt Measured category, lifting Measured and Indicated Resources to 154.8Mt within a 278.8Mt global resource at 483ppm TREO. The high-grade domain stands at 53.3Mt at 1,024ppm TREO, with higher-confidence high-grade tonnage increasing 7.2% to 38Mt.
Underpinning the PFS is a maiden Probable Ore Reserve of 47.0Mt at 692ppm TREO and 248ppm HREO — and the base-case production schedule relies entirely on this Reserve, with no Inferred Resources included.
Simple Mining, Distinctive Mineralogy
The development concept is refreshingly straightforward: shallow, predominantly free-dig open-pit mining feeding a 2.4Mtpa flotation plant, with roughly ten years of mining followed by ten years of processing stockpiled ore. Combined processing and site G&A costs of just A$28.38 per tonne reflect the deposit's hydrated secondary phosphate mineralogy — a clear technical point of difference from refractory hard-rock deposits and light rare earth clay plays.
Pilot operations have already produced a ~7.1% TREO mineral concentrate with a standout 40% HREO/TREO ratio, rich in the dysprosium, terbium and yttrium that ex-China supply chains are scrambling to secure. Annual output is forecast at roughly 29,000 wet tonnes of concentrate.
Funding and the Path Ahead
Victory holds a Letter of Interest from US EXIM for up to US$190 million (~A$275 million) and is advancing offtake discussions with strategic partners across Japan, Europe and the US. The recent US$2.8 billion acquisition of Serra Verde by USA Rare Earth — a project similarly weighted to yttrium, dysprosium and terbium — provides a timely market precedent.
Focus now shifts to the DFS: metallurgical optimisation, approvals, offtake and funding. With globally significant heavy rare earths, low capital intensity and Tier 1 jurisdiction, North Stanmore has staked its claim as the future of Australian heavy rare earths.