- OD6 Metals (OD6) is two weeks into aircore drilling at its Splinter Rock rare earths project in Western Australia
- The company is drilling 192 holes across 110 kilometres at the project which lies 150 kilometres northeast of Esperance
- Drilling at Splinter Rock is on track to be complete by the end of the month
- The company has a secondary project, named Green Patch, in the Goldfields-Esperance region
- OD6 Metals shares are trading at 19 cents at 1:50 pm AEST
Rare earths-focussed OD6 Metals (OD6) is now well into the maiden aircore drilling program at its Splinter Rock Project about 150 kilometres northeast of Esperance in WA.
Splinter Rock hosts widespread clay rare earth element (REE) mineralisation and was identified for its potential through intense research of the Department of Mines’ database.
Managing Director Brett Hazelden said there was some exploration drilling at the area about 15 years ago.
“The campaign has been carefully developed on the back of historic exploration across the tenement package, which demonstrated significant REE potential,” he said.
“This area was vacant when we picked it up late last year, so it’s all been freshly pegged.
“What we’re looking to do now is confirm those results, we’ll put an exploration target on it later this year.”
OD6 Metals’ other project Grass Patch, in the Goldfields-Esperance region, was pinpointed through the study of CSIRO water bore test results.
“Grass Patch area has got some of the highest rare earth content seen in water bores in Australia,” Mr Hazelden said.
“This was picked up by CSIRO in their database a couple of years back and our smart guys have picked up the tenements based on that.
“There’s got to be something causing those high elevated levels in the water.”
Through the over-subscribed IPO process earlier this year, OD6 Metals raised $8 million with 20-cent shares. The company listed in June.
“We’ll be looking to get through two or three rounds of drilling at least at each of the projects, plus the aeromagnetic survey – that survey is worth about a million dollars itself,” Mr Hazelden continued.
Mr Hazelden said electric vehicles, wind turbines and consumer products were driving demand for rare earths, and, other exploration companies were picking up tenements in the same region of Western Australia.
“It’s a little hot spot and potentially a new province for rare earths around the world,” he concluded.
OD6 Metals shares were trading at 19 cents at 1:50 pm AEST.