OD6 Metals Ltd (ASX:OD6) has delivered “very positive” results from metallurgical tests on clay-hosted rare earth elements (REEs) at its Splinter Rock Project, northeast of Esperance in Western Australia.
The tests, conducted by the Australian Nuclear Science Organisation (ANSTO), confirm low acid consumption (HCI) at an average of 16 kg HCl per tonne of ore and average 61% magREO recovery at 20 grams per litre of HCl.
The results, along with the project's high rare earth grades, low stripping ratios and substantial tonnages, demonstrate the potential pathway for commercial production of rare earths at Splinter Rock.
Towards that end, the company has held discussions with chlor-alkali electrolyser vendors and experts to determine if owning and operating a site-based facility could be a viable option.
The indications to date are that this is likely to provide the lowest operating cost for a long-term project that includes an integrated processing facility.
An example of two electrolysers in an operational environment (Source: Ineos).
Attractive economics
A total of 10 samples were selected from a variety of distinct clay and non-clay hosted rare earth at the Prop, Centre, Scrum and Flanker prospects.
The samples were selected based on differing geographic location, grade, colour, chemical composition, proximity to granite and other geological genesis.
The following is a summary of results by prospect at 20g/L HCl:
- Flanker - Acid consumption is 6 kg/t with a 65% magRE recovery;
- Centre - Acid consumption ranging from 6-41 kg/t with a 43-56% magRE recovery;
- Scrum - Acid consumption is 19 kg/t with a 55% magRE recovery; and
- Prop - Acid consumption ranging from 6-63 kg/t with a 49-87% magRE recovery.
Results provide validation
“These low acid consumption numbers are very positive, validating our proposed processing route and providing confidence in future potential process economics,” OD6 managing director Brett Hazelden said.
“This represents a key value lever as we continue to tick all the major boxes that pave the way for project development success.
“We continue to focus on identifying the best-of-the-best prospect areas, with our methodical and disciplined approach, in conjunction with research and development relationship with ANSTO, already yielding notable technical benefits.”
Coming up
The company’s upcoming work plan includes:
- The release of Centre Prospect drill assays this month;
- The release of metallurgical recovery and acid consumption results for the Phase 2 drill program this quarter;
- Further results for the Phase 3 drill program in the first quarter of next year;
- Metallurgical testing and mineralogy assessments at ANSTO are expected to be available this quarter; and
- A review and potential upgrade of the Splinter Rock mineral resource estimate in the first quarter of 2024.