Horizon Minerals find shallow REEs at multiple prospects within Bulong South Gold Project, WA

OD6 Metals soars on ASX after returning ‘very high’ magnet REE recoveries of 96% at Splinter Rock

OD6 Metals (ASX:OD6) has returned ‘very high’ metallurgical recoveries up to 96% magnet rare earth elements following a sampling program in multiple prospect areas within its Splinter Rock Project in Western Australia. 

The company’s share price soared more than 59% to $0.320 as of 1.30pm AWST on the back of the announcement.

The results, generated by a total of 25 samples selected from a wide variety of distinct clay and non-clay types within the Prop, Centre, Scum, and Flanker prospects, provide considerable confidence for the company to proceed with further optimisation testwork in conjunction with targeted infill drill programs within the 4 main prospect areas. 

OD6 reports the highest recoveries were achieved centrally within the main clay basins, with the Prop prospect returning 44-96% recoveries of MagREE (average 71%), the Centre prospect returning 54-78% MagREE (average 62%), and both the Scum and Flanker prospects returning 64-76% recovery of MagREE respectively.  

The company notes sampling utilised a simple hydrochloric leach which demonstrated an ‘impressive’ leach response, suggesting reductions in acid strength are possible. 

Samples were selected based on differing geographic location, rare earth element (REE) grade, colour, chemical composition, and airborne electromagnetic (AEM) conductivity, and were tested at the Australian Nuclear Science Organisation (ANSTO).   

Speaking on the results, OD6 Metals Managing Director, Brett Hazelden, says: “These metallurgical results, undertaken by a specialist team at ANSTO, are a watershed moment for OD6. Results provide comfort that high recoveries can be achieved utilising a simple hydrochloric acid leach. Testing has spotlighted the potential for additional process optimisation through lowering acid strengths, increasing leach times and removal of coarse grain clay material. 

“Testing has spotlighted the potential for additional process optimisation through lowering acid strengths, increasing leach times and removal of coarse grain clay material” 

OD6 has deliberately selected a wide variety of different samples, locations and depths to understand the bookends of recovery so as to enable targeted future drilling and metallurgical testing. It is becoming clear that the areas within the clay basins at distance from the source granites provides the best target zones. This underlines the importance of utilising the Airborne Electromagnetic Survey results to target these highly weather clay areas. 

Our immediate focus is to conduct targeted infill drilling in these clay basins and proceed with further optimisation testwork, bringing us closer to our near-term goal of declaring a significant, high-quality maiden JORC Mineral Resource Estimate.”  

The company also notes 80-90% of magnet rare earth oxides (MagREO) are located in the fine clay hosted size fraction (<75μm), and that 30-50% reduction in material to be leached can be achieved by removing the coarse grained clays.    

Additionally, OD6 reports original metallurgical samples were screened at 4 separate size fractions to determine if the REEs were evenly spread in both the coarse and fine fractions, or if there was a natural preferential concentration of REEs based on size. 

With results from sampling now returned, OD6 Metals announces mineralogy comparison of selected solid samples are underway, with results expected to be returned in Q2 2023. 

As of 8:00am AWST, OD6 Metals share price had increased by 26.82% before dropping to 17.07% as of 8:30am.

OD6 Metals is an ASX-listed company actively exploring and developing opportunities within the critical mineral sector, having already identified clay hosted REEs at its wholly owned Splinter Rock and Grass patch projects located in the Esperance-Goldfields region of Western Australia, about 30-150km northeast of the major port and town of Esperance. 

The Splinter Rock project is considered prospective for widespread, thick, and ‘high-grade’ clay hosted REE deposits that extend over hundreds of square kilometres. Mineralisation is reported to occur in the weathered profile adjacent to Booanya granitic basement rocks which are enriched in REE.

Images: OD6 Metals Ltd & iStock
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.