Rare earths developer VHM Limited (ASX: VHM) is assembling globally significant mineral deposits across three premium projects: the flagship Goschen Project, the recently upgraded Cannie Project and the highly prospective Nowie Project – all located in north west Victoria.

The good news keeps coming for VHM, with outstanding results coming out of Area 4, situated 8 kilometres north of the company’s proposed Goschen Rare Earths and Mineral Sands process plant.

The Goschen Project is VHM’s near-term rare earths and mineral sands project, and comprises five areas. The company recently announced that there was an additional 11.5 million tonnes @ 5.6% of Total Heavy Mineral of probable ore reserves at Area 4 Orion Strandline, with significantly higher rutile and leucoxene grade than previously seen within the Goschen Project Ore Reserve.

In addition, within this area, a high-grade mineable horizon of 2.6 million tonnes @ 9.6% of total heavy mineral (THM) exists at the top of the ore body. Within this horizon, there are 245,500 tonnes of mineable THM and 67,700 tonnes of zircon at an in-situ (in position) grade of 2.6%. The average in-situ grade of Total Rare Earth Oxide (TREO) is a standout 2,300ppm for the upper horizon.

Managing Director, Mr Graham Howard, was upbeat about the results from Area 4 along with the recent findings from Cannie and Nowie Projects, noting: “having multiple high-grade areas defined introduces optionality for both our mining plan and downstream processing.”

Image: VHM Limited.

Area 4: Historical data and future potential

A high-grade strandline deposit within Area 4 was previously defined by resource definition drilling in 2018 and 2019. Characterising and treating 1.6 tonnes of material from four geological zones of interest confirmed the Area 4 material was amenable to processing through the flowsheet proposed for the Goschen Project. 

Metallurgy testwork results have confirmed higher grades than initially forecast by the Mineral Resource and Ore Reserve.

Beyond the outstanding Area 4 results, similar investigations have also opened up high-grade potential at the Cygnus Prospect to the east of Goschen, according to Mr Howard.

Robust reserves and resource inventory

Total company ore reserves now stand at 210.2 million tonnes @ 3.8% THM.

To date, VHM has identified a resource inventory of 820Mt across its Victorian projects and has a 2-4 billion tonne exploration target.

VHM Limited will be holding a live investor briefing in the coming weeks. To register or receive an invite for the session, register your details here.

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Reach Markets has been engaged by VHM Limited to assist with their investor communications and may receive fees for its services.