OD6 Metals (ASX:OD6) identifies high-grade REEs at Grass Patch, WA

• OD6 Metals (OD6) identifies high-grade clay rare earths at its Grass Patch project in Western Australia
• The company has received all assay results for its 93-hole maiden drill program, which revealed grades of up to 3340 parts per million total rare earth oxides (TREO)
• The company also encountered “exceptionally high” magnet rare earth oxides of up to 38.5 per cent of the total rare earth oxide grade
• OD6 says this first-pass program highlights the “strong potential upside” for further targeted drilling across three prospects
• OD6 Metals dips 2.44 per cent, trading at 20 cents at 1:57 pm AEDT

OD6 Metals (OD6) has identified high-grade clay rare earths at its Grass Patch project in Western Australia.

The company has now received all assay results for its maiden drill program completed at the project, situated near Esperance.

Through the program, OD6 was targeting clay basin areas identified and optimised through a combination of a recent airborne electromagnetic survey (AEM) and analyses of regional anomalies.

The program involved 93 holes across the 2000-square-kilometre package and revealed significant areas of high-grade clay-hosted rare earth, with grades of up to 3340 parts per million total rare earth oxides (TREO).

The company also encountered “exceptionally high” magnet rare earth oxides of up to 38.5 per cent of the total rare earth oxide grade — the market for which is a “key driver” for OD6’s work, with the magnets used for wind turbines and electric vehicles.

OD6 said both heavy rare earth oxides and critical rare earth oxides were observed at elevated levels, with thick clays encountered typically between three and 20 metres and up to 59 metres.

The company said this first-pass program highlighted the “strong potential upside” for further targeted drilling across three prospects.

“The three main identified prospect areas of Belgian, Circle Valley and Scaddan will now undergo metallurgical testing to determine potential rare earth recoveries, with a new drill program being planned to focus on the high-grade clay hosted rare earth intercepts already encountered,” OD6 Managing Director and CEO Brett Hazelden said.

“The Grass Patch project is OD6’s second project to have identified clay-hosted rare earths after the flagship Splinter Rock project confirmed the existence of extensive clay-hosted rare earth basins late last year.”

Meanwhile, at the company’s flagship Splinter Rock project, metallurgical results are expected shortly to guide whether the clay-hosted rare earth shows will be economical going forward.  

OD6 Metals shared dipped 2.44 per cent to 20 cents at 1:57 pm AEDT.