OD6 Metals (ASX:OD6) advances metallurgical testwork at Splinter Rock

OD6 Metals (ASX:OD6) has completed a key stage of metallurgical drilling at its Splinter Rock rare earths project in Western Australia, marking a further step toward establishing one of the country’s most advanced clay-hosted rare earth developments.

The company has dispatched core samples to the Australian Nuclear Science and Technology Organisation (ANSTO) to underpin flowsheet optimisation, impurity removal trials and the production of offtake-ready product samples.

Highlights

• Completion of metallurgical diamond drilling at the Inside Centre prospect.

• Collection of 2 to 2.5 tonnes of core material to support optimisation and feasibility studies.

• Dispatch of samples to ANSTO for heap leach, impurity removal and product optimisation testwork.

• Production of Mixed Rare Earth Carbonate (MREC) and Mixed Rare Earth Hydroxide (MREH) for offtake evaluation.

• Indicated resource at Inside Centre of 119Mt at 1,632ppm TREO, with mineralisation open to the north-east and south-west.

• Continued collaboration with ANSTO and CPC Engineering on flowsheet development.

• Phase two drilling at the Gulf Creek copper project in New South Wales set to commence.

Metallurgical progress

The program involved six PQ-diameter diamond holes at Inside Centre, each twinned with previously drilled aircore holes, and delivered between 2 and 2.5 tonnes of rare earth-bearing core considered representative of early mining zones with favourable geology and strip ratios.

The material is intended for bulk testwork at ANSTO, where compositing will be undertaken to validate heap leach kinetics, optimise acid consumption and refine impurity removal processes.

This focus on heap leach methodology is significant, with earlier work already indicating recoveries of around 79 per cent for magnetic rare earths neodymium, praseodymium, dysprosium and terbium.

The introduction of nanofiltration has demonstrated acid recovery rates exceeding 80 per cent, lowering reagent consumption and reducing the downstream impurity removal circuit.

Corporate implications

For OD6 Metals, the development pathway is clearly framed around producing commercial-scale MREC and MREH suitable for international separation facilities.

These products typically attract benchmark payability in the range of 70 to 85 per cent of contained rare earth basket value, making quality and consistency paramount.

The testwork will therefore not only inform project economics but also provide material for direct engagement with prospective offtake partners.

The company is targeting the potential to produce in excess of 6,000 tonnes per annum of rare earth oxide equivalent within five years, although it cautions that this figure remains aspirational pending further feasibility work.

Nonetheless, the steady advancement of flowsheet validation, including on-site cost reduction through a proposed chlor-alkali facility, continues to strengthen the project’s technical foundation.

Managing director Brett Hazelden said the conclusion of the core drilling was a critical enabler for the next stage of development.

“The bulk core samples will enable ANSTO and our technical team to refine and scale-up our flowsheet, while producing sufficient MREC product for customer evaluation. This is a critical step toward advancing Splinter Rock as one of Australia’s leading emerging clay-hosted rare earth projects.”

While Splinter Rock remains the company’s flagship asset, attention is also turning to the Gulf Creek copper project in New South Wales.

Phase two drilling is due to commence shortly, with targets designed to test large geophysical anomalies interpreted as potential repetitions of the historical high-grade mine.

For investors monitoring Australia’s rare earths sector, OD6 represents one of a handful of companies progressing beyond resource delineation into the demanding realm of metallurgical validation.

The ability to demonstrate reliable recoveries, manageable impurity levels and saleable products will determine whether Splinter Rock can transition from one of the country’s largest clay-hosted deposits to a long-life supplier into global magnet supply chains.

Please note the following valuable information before using this website. 

Independent Research 

Market Open Australia is intended to be used only for educational and informative purposes, and any information on this website should not be taken as investment advice or guidance. It is important to conduct your own research before making any investment decisions, which should be based on your own investment needs and personal circumstances. Any investment decisions based on information contained on this website should be taken in line with independent financial advice from a qualified professional or should be independently researched and verified.