Critical minerals explorer and developer OD6 Metals (ASX:OD6) has delivered a maiden Mineral Resource Estimate (MRE) for its flagship Splinter Rock Rare Earth Project in Western Australia.
The company, which has a $23.05 million market capitalisation, says the maiden MRE stands at 344 million tonnes (Mt) @ 1,308 parts per million (ppm) total rare earth oxides (TREO) at a 1,000ppm cut-off grade.
This maiden MRE is noted to contain 149Mt @ 1,423ppm TREO with 23% magnet rare earth oxides (MagREO) at the ‘stand-out’ Centre prospect and near-surface mineralisation up to 70m thick.
As a result, OD6 Metals’ share price has increased by 20% to $0.27 as of 12:40pm AEST.
However, OD6 Metals reports less than 5% of the targeted clay basin area is included in the estimate, with ongoing exploration to further expand the known mineralisation.
This continued exploration is noted to prioritise the ‘best of the best’ in terms of grades, MagREO content, thickness, and metallurgical recovery and is taking place ahead of a phase three drilling program scheduled for Q3 2023.
Drilling has been designed to explore the ‘real’ and ‘substantial’ potential for mineral resource expansion and classification upgrade.
Commenting on the maiden MRE, OD6 Metals Managing Director Brett Hazelden says: “Our Splinter Rock Project maiden Mineral Resource Estimate of 344 million tonnes at 1,308 ppm TREO is emerging as one of the largest and highest-grade clay-hosted rare earth resources in Australia. This remarkable milestone has been achieved within our first year of listed life.
“This remarkable milestone has been achieved within our first year of listed life”
With less than 5% of our clay basin area tested and phase three drilling underway, over the next 6 to 18 months there is significant potential to grow the resource base, and by applying our geometallurgical exploration techniques, prioritise the ‘best of the best’ in terms of grade, MagREO content, thickness and metallurgical recovery is the backbone of the company’s focus and we look forward to both expanding the current resource and zeroing in on our high-priority areas.”
OD6 Metals is a publicly listed explorer and developer pursuing opportunities within the critical mineral sector. To date, the company has identified clay-hosted rare earths at its wholly owned Splinter Rock and Grass Patch projects located in the Esperance-Goldfields region of Western Australia, about 30 to 150 km northeast of the major port and town of Esperance.
Splinter Rock has demonstrated widespread, ‘thick’, ‘high-grade’ clay-hosted rare earth element (REE) deposits that extend over hundreds of square kilometres.
OD6 Metals had $3.5 million cash at hand on 30 June 2023, as stated in its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: OD6 Metals Ltd
