OD6 Metals: OK so this is big – a new clay rare earths resource with both grade and serious scale
OD6 Metals Managing Director Brett Hazelden on 3AW, 2GB, 4BC & 6PR Bulls N' Bears Report
Listen to ASX-listed OD6 Metals Managing Director Brett Hazelden talk to Matt Birney on the Bulls N’ Bears Report about OD6’s massive maiden rare earths resource – and the company says it has only explored 5 per cent of the project area so reach for the calculator if you dare!
TO LISTEN TO THE OD6 METALS AUDIO INTERVIEW - CLICK BELOW
OD6 Metals was one of the first to get onto clay-based rare earths around Esperance after it curiously came across historic CSIRO water samples in the area that showed traces of rare earths. The company holds two projects in the region, the Grass Patch project and its Splinter Rock project where OD6 has just tabled a massive rare earths resource – the size of which would have been unthinkable when company executives first spotted minute traces of rare earths in those water samples a couple of years ago.
RADIO INTERVIEW - TRANSCRIPT
Matt Birney - Welcome to Bulls N' Bears brought to you today by a rare earth explorer, OD6 Metals
Matt Birney - ASX code: OD6
Matt Birney - I'm Matt Birney and I'm joined now by the Managing Director of OD6, Brett Hazelden.
Matt Birney - Hi Brett
Brett Hazelden - Hey Matt
Matt Birney - Okay so OD6 Metals was one of the first to get onto clay-based rare earths around Esperance after it curiously came across some historic CSIRO water samples in the area that showed traces of rare earths.
Matt Birney - The company holds two projects in the region, the Grass Patch project and its Splinter Rock project where OD6 has just tabled a massive rare earths resource – the size of which would have been potentially unthinkable when company executives first spotted those traces of rare earths in those water samples a couple of years ago.
Matt Birney - Okay Brett let's cut to the chase.
Matt Birney - What's the main resource at your clay-based Splinter Rock rare earths project?
Brett Hazelden - Yep, she's a big number as you say, so 344 million tonnes at 1,308 parts per million total rare earths and that's using a cutoff grade of a thousand parts per million which is a high cutoff grade.
Matt Birney - Have you got a higher grade core in there or is it pretty much even across the whole unit?
Brett Hazelden - There's a mixture of high-grade cores in there but we've gone for obviously big tonnes and we could've gone even bigger tonnes if we wanted to as well.
Matt Birney - So as you say, big tonnes there, is that it now? Is the resource closed off?
Brett Hazelden - No they've zoned out five per cent of the total resource, the area that would save up to date. And we've got drilling underway currently.
Brett Hazelden - So we're expecting to expand that even further over the next 6 - 12 months.
Matt Birney - Okay, so what are the key rare earths in your deposit? And what are they typically used for?
Brett Hazelden - So there's the four key magnet rare earths, so NdPr which the light rare earths and then there's also dysprosium and terbium, they're quite rare outside of China so it is a good thing to have, they make up 23 per cent ofthe orebody and 90 per cent of the value going forward.
Matt Birney - So these are rare earths used in electric vehicles right?
Brett Hazelden - Electric vehicles, wind turbines even your air conditioner.
Matt Birney - Now clay-based rare earths are typically lower grade than hard rock deposits although easier and cheaper to mine potentially but there is some debate around grade. You're at 1,308 parts per million, what are your thoughts on clay-based rare earths grades generally?
Brett Hazelden - Yeah I think you needed above a thousand parts per million as a grade, we're looking to obviously get up to 13, 14, 1500 which is where we're sort of hitting with some of the resources and that's where we think the economics will need to sit
Matt Birney - And your cutoff was a thousand was it?
Brett Hazelden - It was a thousand parts per million cut-off grade.
Matt Birney - Now look metallurgy can sometimes be an issue with rare earths deposits, there are a lot of different rare earth locked up in there. How does yours stack up? Have you tested it?
Brett Hazelden - Yeah so across the four main deposits we've got results anywhere from 60 per cent all the way up to 96 per cent recovery so far in acid leaching so it's a relatively simple process, good results then we'll keep on looking for the best sweet spot in terms of grade and recovery going forward.
Matt Birney - Now you said you're still drilling it, very quickly, when will you get some results out of the next campaign?
Brett Hazelden - Yeah we'll finish the drill in the next three or four weeks and anticipate results actually next month and then start to slow for the next two months after that.
Matt Birney - Potentially a Biblical scale resource, well done Brett Hazelden from OD6 Metals.
Matt Birney - Thanks for joining me on Bulls N' Bears and remember we're only here to give you information, not advice, which you should of course seek independently.
Matt Birney - I'm Matt Birney and this is Bulls N' Bears
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