OD6 Metals (ASX:OD6) replicates rare earth resource near Southern Ocean port

OD6 Metals (ASX:OD6) replicates rare earth resource near Southern Ocean port

May 29, 2024 Off By Jack Baker

OD6 Metals has nearly doubled its rare earth resource at Splinter Rock and etched in to pen a 683 million tonne total rare earth oxide estimate northeast of the port town of Esperance in Western Australia.

The resource is grading at 1338 parts per million and sits near Esperance on the Southern Ocean in WA’s Goldfields–Esperance region.

A high-grade indicated component at the centre of the resource features 119Mt @ 1,632ppm TREO and was calculated using the same 1000ppm cutoff of the greater resource.

OD6’s Splinter Rock indicated segment holds about 23 per cent of the valued magnet component.

The notable resource places some 910,000 tonnes of contained TREO and 205,000t of magnet oxides to the OD6 name and opens up the project to complete a scoping study by year’s end.

OD6 Managing Director Brett Hazelden said there was further upside in the clay basins remaining undrilled or open, and if a 600ppm cutoff were to be used, the grade curve would show a mineralised 1.6 billion tonnes at 1,014ppm TREO.

“This mineral resource estimate sets OD6 apart from any other clay-hosted rare earth project in Australia, and highlights Splinter Rock to be one of the largest and highest grade projects globally,” Hazelden said.

“This is a truly massive resource that puts Western Australia and Australia on the worldwide REE map.”

OD6’s leader said the project’s high-grade Inside Centre prospect would be the main focus for Splinter Rock’s scoping study, and metallurgical recoveries of about 60%, low acid consumptions, no private royalties, and access to infrastructure away from farmland set the project apart from a clay-hosted pack.

The company was one of the early movers into land surrounding the fishing town of Esperance, territory which has continued to show a lustre for the easily processed clay-hosted deposits around which China built its sector dominance.

Old water bore results showing a smattering of rare earths eventually became the 2579 square kilometres of granted exploration licences now known as Splinter Rock.

A large resource is now in place, and with metallurgy so far showing similarly high recoveries across the valued magnet elements OD6 appears increasingly confident it can bring its asset to production.

The West Perth-headquartered explorer quickly followed its upgrade announcement with an investor presentation, believing it can now show off the hallmarks of a highly economic asset.

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