Victory Mines to Fast Track NSW Cobalt-Scandium Projects As...

Victory Mines to Fast Track NSW Cobalt-Scandium Projects As Battery Makers Look to Australia for Supply
PUBLISHED: 20-03-2018

Victory Mines (ASX:VIC) now has in its possession 100% ownership of two highly prospective cobalt and scandium projects in NSW, as it aligns its operations and exploration programs with the highly attractive global fundamentals for cobalt and scandium.

The company made the strategic decision to take full ownership of the Husky and Malamute projects in light of growing global demand for the critical metals. That, and the fact that Australian producers are uniquely positioned to meet rising requirements.

VIC hasn’t stopped there either. It has also acquired two projects in WA that are prospective for cobalt: Peperil Hill and Galah Well.

The NSW projects are the immediate focus of the company, where it is fast tracking exploration.

Located 150 kilometres west of Dubbo in the Fifield district of NSW, Husky and Malamute are in a region that is rapidly becoming an emerging future supply chain hub for cobalt and scandium.

They are near tenure owned by high profile listed peers the $738 million capped Clean TeQ Holdings Ltd (ASX:CLQ), the $281 million capped Australian Mines Ltd (ASX:AUZ) and Platina Resources Ltd (ASXGM), which all have mineral resources with nickel, cobalt and scandium. Also in the immediate area is Scandium International Mining Corp. (SCY:TSX) that will be developing its Nyngan Project as a standalone scandium operation.

Of course VIC is an early stage company and investors should seek professional financial advice if considering this stock for their portfolio.

The region in NSW in which VIC is operating is rapidly becoming an emerging future supply chain hub for cobalt and scandium. All of this comes against a backdrop of strong global demand for both specialty metals, especially those sourced from ethical mining jurisdictions like Australia.

This has been evidenced by both Apple and Samsung's strategic moves to opt out of ethically challenged regions for their cobalt supply. These giants of industry are not the only ones looking outside the DRC, where two thirds of cobalt supply is currently sourced.

Asian battery makers are now turning to Australia and Canada for their supply and it looks like deals aren't too far away as we'll look into shortly.

Of course all of this augers well for a junior such as VIC.

With all approvals granted enabling the acquisition to be finalised, it opens the doors for VIC to kick off inaugural drilling campaigns at its NSW tenements as soon as is practically possible.

Desktop reviews have now been completed for Husky and Malamute and the company’s Board is ‘delighted with the findings’.

There is a great deal of news to come from VIC in the near term including plans to optimise its legacy assets.