OD6 Metals catches eyes as maiden REE drill run assays turn over impressive grades

Thu 10 Nov 22, 2:11pm (AEST)
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Key Points

  • OD6, a smallcap rare earth element (REE) explorer, turning over assay results for its maiden drill run at WA Splinter Rock project
  • Company confirms high grade magnetic elements present in desirable concentrations within larger Total Rare Earth Oxide (TREO) counts
  • Company has more assays coming; today’s results cover 65 of 170 holes

OD6 Metals (ASX:OD6) is one of the market's strongest gainers in early afternoon trading following the REE explorer's confirmation of rare earths acreage underground. 

The company has published assay data today proving high grades of rare earths at its Splinter Rock project in southern WA, northeast of Esperance.

Of the 179 drill holes completed, 65 have been completed; at this stage, the company notes 49% of drillholes boast TREO grades over 0.7%. 

High value magnetic REEs present 

Among those rare earths are high value magnet rare earth oxides (MREOs), including neodymium and praseodymium, which are required in a diverse range of applications. 

Notably, the two metals have come to the fore in the recent past for their inclusion in wind turbine engines; some 600kg of MREOs are needed in one single turbine. 

Neodymium and praseodymium constitute an average of 20.7% of the overall total rare earth count logged across all the assays returned today. 

What did OD6 find?

While the best core section reported today is only 3m long, OD6 uncovered REE mineralisation in clay of 0.67% percent concentration; a fairly strong result as far as rare earth assays go. 

The assays today cover 65 holes from a 179-hole program; the company’s exploration team notes thick core samples were pulled “over extensive areas,” adding weight to the theory that broad REE mineralisation is present on-site. 

REEs have been assayed at the shallowest point from 15m, down to 90m. 

Rare earth results are amalgamated into concentrations of TREO (including 15 elements overall,) with high-value magnet counts then broken down into MREO. 

Worth noting is that MREOs (read: the most expensive REEs) sit at an average of 23.3% of the TREO grade, if you average all results together. 

Standout results include: 

  • 06m @ 0.41% TREO (22.6% MREO) from 27m depth 

  • 06m @ 0.32% TREO (24.5% MREO) from 30m depth 

  • 18m @ 0.24% TREO (24.4% MREO) from 21m depth 

  • 07m @ 0.22% TREO (23.0% MREO) from 45m depth 

  • 03m @ 0.67% TREO from 27m depth

Assays give company four main target areas

On the back of today’s results, OD6’s exploration team has flagged four new prospect areas at Splinter Rock to make the focus of future upcoming exploration activities.

Those four prospects are called: Scrum, Centre, Flanker, and Prop. 

These four prospects span “4 to 7km in drilled length,” which OD6 also highlights is equal to “more than 40 lengths of the MCG.” 

Among highest clay-hosted grades in Oz: Management 

“These initial rare earth assay results are outstanding and represent some of the highest grades and thickest clay hosted rare earth intersections seen in Australia,” OD6 Metals MD Brett Hazelden said. 

“The Splinter Rock Project, with its proximity to port and renewable energy generation potential, now has the very real potential to be a globally significant, world class group of mineral systems that could be a multigenerational asset as the world transitions to the decarbonised economy.”

“Importantly, these drill results validate historic assays, plus they extend the discovery of clay-hosted rare earths across a new drill line perpendicular to the original line. This bodes well for future drilling, which we anticipate will significantly grow the known mineralised area.”

Hope you bought early: a look at OD6's movements on the chart today (3mth view)
OD6 was up around 35% in early afternoon trading.


Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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