Victory Metals (ASX:VTM) produced a mixed rare earth oxide (MREO) with 94% total rare earth oxides from its North Stanmore project in Western Australia, according to a Tuesday filing with the Australian bourse.

The MREO was produced from a 104-kilogram composite sample made up of 453 assayed samples taken across the project, confirming the value of the deposit, the filing said.

Further metallurgical work is underway, targeting a zirconium-bearing secondary mineral in the leach residue to recover hafnium, scandium, and heavy rare earth elements, according to the filing.

Shares fell 3% in afternoon trade on Tuesday.