OD6 Metals sets sights on growth

Explorer and developer OD6 Metals (ASX:OD6) has spent the past financial year solidifying its place in the rare earth element (REE) resource sector, according to its latest annual report. 

The $20.49 million market capitalisation company, which is actively pursuing rare earth discoveries across both its flagship Spinter Rock and Grass Patch projects within the Esperance-Goldfields region of Western Australia, says its goal is to delineate and define economic resources and reserves of REEs. 

It is believed these potential economic resources and reserves can be developed into a future revenue generating mine.

Throughout the year, OD6 has achieved a ‘significant’ body of work, including defining what is touted as Australia’s largest and ‘highest-grade’ clay-hosted rare earth Mineral Resource Estimate (MRE) at its Splinter Rock Project. 

This MRE for Splinter Rock now stands at 344 million tonnes (Mt) at 1,308 parts per million (ppm) total rare earth oxide (TREO) using a 100ppm cutoff grade, and was achieved in less than a year from the start of first drilling. 

OD6 reports this resource will grow ‘significantly’ over the next 6 to 18 months as drilling of new areas identified using the airborne electromagnetic survey (AEM) completed in late 2022 continues. 

Looking forward, OD6 will have its sights set on determining the economics of any future business and the total cost of extracting the REE from its best deposits. The use of a 1,000ppm cut-off grade was deemed appropriate for this goal. 

The company notes with its exploration and development journey now underway with a clear approach focusing on highly targeted geometallurgical exploration to prioritise the ‘best of the best’ resource, a Scoping Study is the next logical step. 

OD6’s Splinter Rock project is located 150km northeast of Esperance, Western Australia, and comprises 6 granted exploration licences which covers a total landholding of 2,579km-square. 

The Grass Patch Project is located only 30 to 100km northeast of Esperance and comprises 4 granted exploration licences which cover a total landholding of 2,248km-square. 

Both projects are considered prospective for REE mineralisation.    

OD6 Metals had $3.5 million cash at hand as of 30 June 2023, according to its latest quarterly report. 

Write to Adam Drought at Mining.com.au

Images: OD6 Metals
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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.