Victory Mines Ltd (ASX:VIC) has received the finalised desktop review on its recently acquired Husky and Malamute projects in New South Wales.
Geophysical signatures have verified that both projects are prospective for cobalt and scandium mineralisation.
The desktop reviews on the Husky and Malamute focused on analysing and comparing the underlying geology in nearby peers’ tenure.
Victory’s non-executive chairman Dr James Ellingford said: “Implicitly, with similar geological sequences to key peers CLQ, AUZ and PGM that have already proven cobalt and scandium mineralisation, it delivers VIC significant exploration upside.
“Importantly, the region is rapidly becoming an emerging future supply chain hub for cobalt and scandium, against a backdrop of strong global demand for both speciality metals.
“Moving forward, the board has undertaken a strategic review and decided the priority will be on the newly acquired cobalt and scandium assets.
“Plans to optimise VIC’s legacy assets will be announced in due course.”
The area is an emerging cobalt and scandium supply chain hub
Several nearby peers’ deposits have JORC resources including:
• Australian Mines’ (ASX:AUZ) Flemington cobalt-scandium-nickel deposit;
• Clean TeQ’s (ASX:CLQ) Sunrise nickel-cobalt-scandium deposit; and
• Platina Resources’ (ASX:PGM) Owendale scandium-cobalt-platinum-nickel deposit.
Notably, legacy drilling results from the Riva Resources’ (ASX:RIR) Hylea project have returned cobalt grades ranging from 0.27% up to 0.85%.
Drilling results confirm the geophysical signature at the Malamute project is likely analogous to those at the Flemington, Sunrise and Owendale deposits.
Furthermore, the Husky project overlies the same geophysical signature as the Sunrise and Flemington deposits.
Plan is to now fast-track exploration
Given the findings of the review, the board is keen to fast-track the exploration plan to ultimately quantify the extent of geological mineralisation.
The geology team has instructions to commence drawing up detailed low impact soil sampling programs over Husky and Malamute to identify target zones.
Target zones will then likely be drilled.