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Victory Goldfields is onto a winner with new tenement acquisition adjoining REE discovery
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The binding agreement enhances Victory’s tenure position surrounding its recent discovery of a rare alkaline igneous intrusion on the North Stanmore tenement in Western Australia.
The acquisition of tenement application E20/1016 comprises 11 blocks which borders the entire eastern boundary of North Stanmore.
With alkaline intrusions being referred to as ‘engine rooms’ for rare earth elements (REEs), Victory’s (ASX:1VG) executive director Brendan Clark says there is potential the REEs already reported, roughly 4km to the south of the intrusion, could be consistent and radial around the intrusion.
These initial assays at the Bullseye magnetic anomaly included up to 1022ppm nickel, up to 127ppm cobalt and up to 44ppm copper, which have been confirmed by petrology and mineral chemistry to be associated with pentlandite (nickel-iron sulphide).
The discovery also generates a potential 10km diameter exploration zone for REE, nickel, cobalt and scandium – as well as for gold and Platinum Group of Metals (PGMs).
Agreement includes tenements with gold exposure
Around 1,086 assays covering an area of about 800m north from the company’s recently reported rare earth element discovery are due to be reported imminently.
Another three tenements offering excellent gold potential are also included in the binding agreement from Mining Equities in exchange for 1,200,000 fully paid ordinary shares
The shares issued under this agreement will be subject to voluntary escrow for 12 months from issue or until the last of the tenement applications is granted, whichever occurs first.
The vendor will retain a 1% NSR Royalty from the sale of any mineral mined from the Royalty Area by or on behalf of Victory.
Processing plant due diligence under way
Due diligence investigations are under way for the acquisition of a former gold CIP/CIL processing plant, which has been in care and maintenance for about 10 years.
It includes a crushing circuit, tailings storage facility (TSF), workers accommodation and outbuildings with due diligence focusing on timeframes around the construction of a processing plant and TSF.
1VG says it will also investigate whether the existing environmental approvals of the former gold plant will reduce approval timeframes for REE processing compared to a greenfield site.
This article was developed in collaboration with Victory Goldfields, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
