OD6 Metals (ASX:OD6) continues to exceed technical expectations rounding out 2023 with “the best grades, extents, and thicknesses” any Australian clay-hosted rare earths project has seen to date.
Managing Director Brett Hazelden says this was complemented by continued strong metallurgical recoveries with low acid consumptions and an expansion of our clay basin areas, delivered in partnership with ANSTO and CSIRO.
On 21 September 2023, the $11.78 million market capitalisation company posted new assays from phase three aircore (AC) drilling at its Splinter Rock rare earth element (REE) project in Western Australia. These ‘significantly’ expanded the potential of the Prop prospect, as reported by Mining.com.au.
Hazelden says OD6 has emerged as Australia’s premier clay-hosted REE company and presents itself as an ‘excellent opportunity’ for ‘savvy’ investors to take full advantage.
“The inside Centre Prospect has emerged as a standout REE clay basin area, significantly exceeding our expectations in the factors we believe drive an economically viable project.
The prospect will contribute significantly to an expected expansion of our current Mineral Resource Estimate, which is already the largest and highest grade in Australia and will see OD6 being potentially compared to some of the existing and future producers in China, South America and Africa.
We continue to prudently manage expenditures, with our treasury position remaining strong with over $2M in the bank at the end of the year, with current expenditure focused on metallurgical test work, research and development, and preparation works for the next round of drilling.”
During the past quarter up to 77% of holes returned grades of greater than 1,000 parts per million (ppm) total rare earth oxide (TREO). Results also demonstrated ‘extensive’ clay thicknesses up to 77m at ‘high-grades’ and across a 14km by 5km zone at the Centre prospect.
In its latest quarterly report, OD6 notes a ‘thick, high-grade’ clay channel of about 2km by 1km and up to 69m thick was also identified to the southern end of the resource, with grades up to 1,400ppm and 2,200ppm TREO.
With results from the drilling program in-hand and new targets identified, there is ‘real’ and ‘substantial’ potential for mineral resource expansion at the project, OD6 says.
The company adds metallurgical test results confirm low hydrochloric acid (HCI) consumption with an average of 61% MagREO recovery at 20g/l HCI.
OD6 states the ‘positive’ acid consumptions and recoveries, when combined with ‘high-grades’, low stripping ratios, and ‘substantial’ tonnages, provide considerable confidence in key economic drivers.
Meanwhile, OD6, alongside the CSIRO, applied machine-learning technology and advanced 3D modelling to provide an enhanced interpretation of OD6’s Tempest airborne electromagnetic (AEM) data.
OD6 says the modelling compares well to existing drilling, allowing it to be trained on locally verified data to produce predictions of thickness of surface cover, maps of granite outcrops, targets with the thinnest cover, and prioritised target areas.
During the previous quarter, the company flagged multiple new prospects and expanded basin areas, including untested northeast Splinter Rock tenements designated the Tighthead and Loosehead prospects, which cover 135km-square.
OD6 closed the December quarter with $2.1 million in cash at hand.
OD6 Metals is an Australian explorer and developer focused on its wholly owned Splinter Rock and Grass Patch projects in the Esperance-Goldfields region of Western Australia.
Write to Adam Drought at Mining.com.au
Images: OD6 Metals
