OD6 Metals has vowed to continue its research aimed at developing the best rare earths discovery and extraction methods for its clay-hosted operation in the Western Australian town of Esperance after receiving a tax incentive rebate of $962,697.
The research and development (R&D) rebate from the Australian Government relates to the company’s work at its promising Splinter Rock and Grass Patch rare earths deposits that sit between about 30km and 150km north-east of Esperance and its major port.
OD6 says Splinter Rock is emerging as Australia’s “pre-eminent” clay-hosted rare earths exploration and development site after a new airborne electromagnetic (AEM) survey identified significant extensions and new prospects to explore.
The company has reconfirmed its commitment to R&D as it continues to develop critical minerals technologies through key relationships with notable industry entities including the CSIRO, Murdoch University and the Australian Nuclear Science and Technology Organisation (ANSTO), in addition to private research providers. In light of that and its anticipated ongoing work, management anticipates being able to claim future tax offsets in the coming years.
The R&D Tax Incentive program is an important scheme supporting OD6 and its partners like CSIRO, ANSTO and Murdoch university to develop the technology to discover and extract the rare earth elements associated with its clay-hosted rare earth projects. Critical minerals exploration, discovery and development is crucial for a world in an energy industry transition. Considering there is only one operational rare earth mine in Australia, the federal government’s support of this critical minerals industry is highly important to the future development of the Company and the resources industry. OD6 Metals managing director Brett Hazelden
Mr Hazelden said the company was pursuing technological advances in a bid to help fast-track a rare earths industry in Esperance.
The company teamed up with the CSIRO, the nation’s science agency, in a bid to apply AI “machine-learning” technology and 3D modelling to create a more comprehensive interpretation of its AEM data and to help prioritise target areas. It is aiming to define economically-mineable rare earths resources and reserves – especially with the magnet rare earth oxides (MREO) neodymium, praseodymium, dysprosium and terbium needed for permanent magnets, which are commonly used in electric motors and high-efficiency generators.
Exploration drilling, geophysics and geological interpretation at OD6’s flagship Splinter Rock project has revealed the widespread existence of thick, high-grade clay-hosted rare earths deposits. The deposits have accumulated in depressions and channels within and between near-surface, variably-weathered granitoid rocks, potentially extending through hundreds of square kilometres.
They may be more than 80m deep in some places, with up to 20m of more recent surficial cover.
Clay-hosted rare earths deposits are economically extracted in China, which is the dominant world producer, but much of the production there uses in situ leaching with toxic chemicals including sulphuric acid. That could not be contemplated in Australia and new techniques and/or reagents need to be developed if in situ leaching is to be considered.
Despite the China experience, the aspect of in situ leaching remains a logical consideration because open-pit mining of such vast, shallow pits across valuable farmlands, rangelands and natural reserves may be even less favourable.
Ongoing exploration and refinement of potential resource boundaries will depend on understanding the precise composition of the rare earths mineralisation being encountered and any geological, geomorphic, topographic, hydrological, and geochemical mechanisms controlling styles, variations, grades and concentrations of each element within deposits.
Metallurgical acid-leach extraction testwork with hydrochloric acid has resulted in positive recoveries for OD6 and leach method optimisation is ongoing. But it will also need to be tied into an understanding of the hydraulic gradients within and near the deposits to avoid or minimise either reagent contamination of the groundwater or loss, or both.
The OD6 story is extensive in terms of resource scale and it is also going to require considerable R&D to find practical, economic and environmentally-sustainable methods all the way through the exploration mining and extraction profile of the venture, not just in the metals extraction phase.
So, it seems certain this is not going to be the last R&D claim the Federal Government is going to receive from OD6.
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