VHM Drill Results Confirm Goschen Grades Run Higher Than Historical Records
Key Takeaways
- VHM's 333-hole, 11,164-metre aircore infill program at Goschen returned twin-hole THM grades 5.6% higher in Area 1 and 3.6% higher in Area 3 than corresponding historical drilling results.
- Correlation coefficients of 0.85 (Area 1) and 0.75 (Area 3) confirm strong reproducibility of the historical database, supporting the reliability of the existing Mineral Resource Estimate.
- The program's results are expected to feed directly into future MRE updates and potential Heavy Mineral Concentrate offtake evaluation activities, with detailed QEMSCAN mineral assemblage work planned at ALS Metallurgy Services in Perth.
- Goschen already holds a full approvals stack — including Mining Licence, EPBC, and Planning Scheme Amendment — plus a strategic partnership with Iluka Ltd featuring an A$40 million cornerstone funding package and rare earth concentrate offtake to the Eneabba Refinery.
- Conditional financing support of up to A$75 million from Export Finance Australia and up to US$200 million from the US Export-Import Bank positions Goschen as one of the better-capitalised advanced mineral sands projects on the ASX.
Drilling program bolsters confidence in Goschen’s mineral resource
VHM Ltd has announced completion of its 2026 aircore infill drilling program at the Goschen Project, with initial results supporting the existing geological interpretation and increasing confidence in the Mineral Resource Estimate (MRE). The program comprised 333 holes for 11,164 metres across Areas 1 and 3, completed between 20 March and 18 April 2026.
The headline result: the twin-hole component returned mean Total Heavy Mineral (THM) grades 5.6% higher in Area 1 and 3.6% higher in Area 3 than corresponding historical VHM drilling results, within the mineralised horizons.
The program was designed with four objectives: improve geological confidence, advance metallurgical and processing knowledge, generate bulk sample material for potential Heavy Mineral Concentrate (HMC) offtake evaluation, and support future MRE updates. This is confirmation and de-risking work within an already advanced project, not a new discovery.
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What the twin-hole results reveal
Validating the historical database
The twin-hole component comprised 31 holes — 17 in Area 1 and 14 in Area 3 — generating 547 paired samples for direct comparison against historical VHM drilling. The results confirm the reliability of the historical database and support the current geological interpretation of the modelled mineralised horizons.
The table below sets out the grade comparison for the most direct pairs: those where the 2026 hole collar was drilled within 10 metres of its historical twin. These tighter pairs provide the most meaningful grade-to-grade comparison.
| Area | Horizon | Pre-2026 VHM Mean THM | 2026 Mean THM | Relative Difference |
|---|---|---|---|---|
| Area 1 | Zone 2 (≤10m pairs) | 3.57% | 3.77% | +5.6% |
| Area 3 | Zone 1 (≤10m pairs) | 2.07% | 2.15% | +3.6% |
Source: Appendix F, Table 5 — VHM ASX Release, 8 September 2026. Zone 2 in Area 1 and Zone 1 in Area 3 are the mineralised horizons carried in the Mineral Resource.
What the correlation scores mean
The twin-hole data also produced correlation coefficients of 0.85 for Area 1 Zone 2 (≤10m pairs) and 0.75 for Area 3 Zone 1 (≤10m pairs). In plain terms, a correlation coefficient measures how consistently grades repeat between old and new holes drilled at the same location. A score of 1.0 would be a perfect match; scores of 0.75 and above indicate strong reproducibility.
The slightly higher grades returned in 2026 add confidence rather than uncertainty. They suggest the historical database, if anything, modestly understated grade in the mineralised horizons.
CEO Andrew King
“The 2026 drilling program has delivered a very positive outcome for VHM, confirming the historical drilling database and supporting our geological interpretation across both Areas 1 and 3. The fact that recent drilling returned slightly higher grades than the pre-2026 drilling provides additional confidence in the quality of the Goschen resource and the work completed to date.”
Why aircore drilling and twin-hole programs matter for mineral sands investors
Aircore drilling is a technique where a rotating drill bit pushes air through the rod to bring sediment samples to the surface. Geologists collect and analyse those samples at precise one-metre depth intervals, building a detailed picture of what lies underground without the cost or complexity of core drilling.
A twin-hole program takes that a step further. Drilling a new hole immediately adjacent to an existing historical hole is essentially an independent verification test: do the grades stack up when you drill the same spot again? If they do, the historical dataset can be trusted. If they don’t, the resource model needs revisiting.
Total Heavy Mineral (THM) grade is the critical number in mineral sands. It measures the concentration of valuable minerals — including zircon, titanium oxides, and rare earth-bearing minerals — in the sand. Higher and consistent grades across multiple drill campaigns mean higher confidence in the resource model.
That confidence level matters directly to investors because it determines how a resource is classified under the JORC Code (the Australasian reporting standard for mineral resources). Resources classified as Indicated carry more certainty than Inferred resources, making them more useful for project financing, feasibility studies, and offtake negotiations. Moving ounces (or, in this case, tonnes of heavy mineral) up the confidence ladder is a material step toward bankability.
Goschen’s broader investment case
The drilling result sits within a project that has already secured all key approvals and major strategic partnerships. Key milestones already achieved include:
- Strategic partnership with Iluka Ltd, including a take-and-pay offtake for rare earth concentrate to the Eneabba Refinery and an A$40 million cornerstone funding package (ASX release, 2 July 2026)
- Full approvals pathway complete: Environment Effects Statement (EES) endorsement (December 2024), Mining Licence (April 2025), EPBC approval (September 2025), Cultural Heritage Management Plan approval (October 2025), Work Plan approval (November 2025), and Planning Scheme Amendment (August 2026)
- Non-binding and conditional Letter of Support from Export Finance Australia (EFA) for up to A$75 million, and a Letter of Interest from the Export-Import Bank of the United States (EXIM) for up to US$200 million (approximately A$304 million) (ASX release, 21 October 2025)
- Dual commodity revenue streams: rare earths including Neodymium, Praseodymium, Dysprosium, and Terbium, alongside heavy minerals concentrates including zircon and titanium oxides
- 100% VHM ownership, with the project strategically located in Victoria’s Loddon Mallee region, offering direct access to road, rail, and port facilities
The rare earth potential at Goschen has been a growing part of VHM’s investment thesis, with neodymium, praseodymium, dysprosium, and terbium all represented in the project’s dual commodity revenue profile alongside the heavy minerals concentrates.
The drilling program is a de-risking step within this already advanced context, not a standalone catalyst.
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What comes next
Assay and analytical work across Areas 1 and 3 is ongoing, with results being progressively incorporated into geological, metallurgical, and processing evaluation. The expanded dataset is expected to support future MRE updates and potential HMC offtake evaluation activities.
Detailed mineral assemblage work is planned for composite samples, to be undertaken by ALS Metallurgy Services in Perth using XRF Analysis and Quantitative Evaluation of Minerals by Scanning Electron Microscopy (QEMSCAN) techniques.
VHM has noted a gap in central Area 3 drill coverage due to restricted access over the central land parcel. This was a fixed external constraint rather than a design choice, and the company has identified it as an area where increased confidence will be addressed prior to production.
Future drilling may also be undertaken to test the lateral and strike extent of mineralisation in areas that remain open based on current drill coverage.
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