Victory Metals (ASX:VTM) has significantly enhanced its resource estimate for the North Stanmore Project in Western Australia by incorporating gallium oxide. The addition of 4,788 tonnes of gallium oxide brings the project’s resource to 247.5 million tonnes at 520 ppm total rare earth oxide, plus gallium oxide at 26 ppm. This strategic addition positions Victory Metals as a potentially reliable Western supplier of critical metals, especially given current global supply constraints due to Chinese export restrictions.
The North Stanmore Heavy Rare Earth Project, located near Cue, Western Australia, already boasts an estimated net present value of $1.212 billion and a 52% internal rate of return, *before* considering the gallium. According to Victory Metals, the gallium is recoverable without additional mining or processing. CEO Brendan Clark emphasizes that while the focus remains on heavy rare earth development, the ability to concurrently recover gallium significantly enhances the project’s value. North Stanmore now encompasses seven critical minerals subject to Chinese export restrictions, including heavy and light rare earths, hafnium, and scandium. Victory Metals also highlights that it is one of the few Australian companies with a declared gallium oxide resource.
Gallium, a critical technology metal used in semiconductors, AI chips, and defense systems, currently sells for $770 per kilogram. The gallium market, valued at US$2.45 billion in 2024, is projected to reach US$5.38 billion by 2028 and US$21.53 billion by 2034. Victory Metals has completed four stages of metallurgical test work, focused on beneficiation and leach testing, to optimize potential recoveries and processing options.
