OD6 Metals Ltd (ASX:OD6) is trading higher after fielding an updated mineral resource estimate (MRE) that doubles the previous estimate at the Splinter Rock Rare Earth Element (REE) Project in Western Australia.
The total MRE now sits at 682 million tonnes at 1,338 parts per million (ppm) total rare earth oxide (TREO) at a cut-off grade of 1,000 ppm.
This includes a higher confidence indicated portion of 119 million tonnes at 1,632 ppm TREO, again at a 1,000-ppm cut-off.
Importantly for OD6, the resource contains high-value magnet rare earth oxides (MREO) to the tune of about 23% of TREO, making for about 205,000 tonnes of MREO within the resource and approximately 910,000 tonnes of contained TREO
Investors have responded positively with shares have been as much as 50.8% higher in morning ASX trading to $0.095.
Global significance
“This MRE 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,” OD6 Metals managing director Brett Hazelden said.
“The MRE has significant further upside based on the identified clay basins that remain open in multiple directions or have yet to be drill tested.
“It is worth pointing out that if a lower cut of grade of 600ppm was utilised, the tonnage grade curve shows a mineralised tonnage of 1.6 billion tonnes at 1,014 ppm TREO.
“This is a truly massive resource that puts Western Australia and Australia on the worldwide REE map.
“The Inside Centre Prospect, with an indicated resource of 119 million tonnes at an average grade 1,632ppm TREO, will be the main focus of the planned scoping study due for completion at the end of this calendar year.
“The metallurgical recoveries of about 60%, along with an anticipated low stripping ratio, plus low acid consumptions, no private royalties, access to green energy generation potential, proximity to port and strategic location away from farmland, sets the project apart from so many of clay hosted deposits around the world.”
OD6 intends to work toward expanding the MRE further with future exploration drilling at prospective clay basins within the project tenure.