THE company behind the large Goschen mine project has identified another new deposit nearby.
In a 26-page announcement to the Australian Stock Exchange this week, VHM Ltd reported drilling had identified high-grade rare earth, zircon and titania ore at Nowie, 22km north of the proposed Goschen treatment plant.
VHM said data from 50 drill holes and geophysics information indicated the Nowie deposit was at least 3km wide and up to 11km long, and contained higher grade deposits than many of those reported at Goschen.
Managing director Graham Howard said the excellent results from initial drilling at Nowie supported the company’s plan to continue developing what it described as a “critical minerals province” in the area.
“We anticipate further resource definition work at Nowie will extend the scale of this prospect during the second half of 2023 and we look forward to releasing future results,” he said.
“Having a third potential project option to consider opens several possibilities for the company that we will now introduce to discussions with interested offtake partners and potential strategic investors.”
In May, VHM reported finding high grade reserves at Cannie, about 13.5km south of the Goschen project.
Addressing an online briefing for shareholders last week, Mr Howard said approvals for the VHM projects were at an advanced stage, with the Goschen environmental effects statement to be released for public comment by the Victorian Government.
The company had also secured landholder agreements covering 100 per cent of the mine footprint, which he said “sets us apart from other projects in Australia and in Victoria”.
Mr Howard said VHM was preparing for a start to production in 2025 with recovery rates expected to be higher than its peers.
“That is due to the exceptional geology where we’re mining sand-hosted rare earth deposits with substantial zircon and titanium credits,” he said.
Designs for the base plant at Goschen were 30 per cent complete.
Once initial processing has been carried out, the minerals will be sent in shipping containers by rail from Ultima to the Port of Melbourne, with the majority bound for China.
Global demand is growing for critical minerals, including rare earth elements, which are a crucial component for the clean energy and renewable technologies market. They’re used to manufacture technologies that will help Australia to transition to net zero emissions, such as wind turbines, electric vehicles, batteries and energy-efficient LEDs.
VHM listed on the ASX in January. Since then its share price has varied from 55 cents to $1.245.
