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OD6 scores dollars for drilling in State exploration scheme

Updated: Apr 18

OD6 Metals will use a maximum grant of $180,000, secured from the WA Government as a successful Exploration Incentive Scheme co-funded drilling program applicant, to explore its Splinter Rock rare earths project near Esperance.

The company has earmarked the funding for diamond-core drilling to provide samples for metallurgical analysis, in addition to air-core drilling to test the mineralisation length, depth, thickness and grade of the clay basins at the operation.

Splinter Rock is about 150km north-east of Esperance and comprises six exploration licences covering more than 2500 square kilometres.

The funding program is a WA Government initiative that aims to encourage local exploration for the long-term sustainability of the State’s resources sector. A total of 40 applications were successful from 35 different companies, in addition to a single prospector application.

The scheme is a competitive program that is open for applications twice a year. The program offers up to a 50 per cent refund for innovative exploration drilling projects, capped at $180,000 for a multi-hole application.

OD6’s successful approval was associated with confirming the findings of its recent airborne electromagnetic survey and digital elevation model studies to determine the extent, quality and characteristics of the deposit model at Splinter Rock. The company is yet to formally sign the funding agreement.

The critical minerals industry, which includes OD6’s focus on rare earths, is at an important incubation stage with the support of State and Federal Governments being essential to make Australia a driving force in the future provision of these minerals to world. OD6 looks forward to potentially being one of the next major mineral discovery and development stories, that will create jobs and deliver economic growth to the Esperance Region and more broadly Australia. OD6 Metals managing director Brett Hazelden

Earlier this year, the company wrapped up its second phase of drilling at the operation with early observations aligning with recent electromagnetic survey results. The 83-hole air-core drill campaign covered 4305m and was designed to infill and test the localised consistency of clay thickness, grade and mineralogy of the operation at an average depth of 50m to a maximum of 102m.

The results prompted OD6 to declare the site a “globally significant discovery” after receiving assays including a 3m hit at 6605 parts per million total rare earth oxides (TREO) from 57m.

Additional assay highlights – all from the Centre prospect – include a 66m section grading 1516ppm TREO from only 15m, in addition to a 55m segment at 1781ppm TREO from 21m that included the standout 3m hit. The widest hit was also recorded at the prospect with 71m going 1330ppm TREO from 15m.

The company says the results correlate strongly with data from an airborne electromagnetic survey, completed late last year, that highlighted significant targets at the Scrum, Centre, Flanker and Prop prospects. The survey completed 11,500 line kilometres flown between a 400m and 800m line-spacing in a north-west to south-east direction at Splinter Rock and a west to east direction at OD6’s Grass Patch rare earths project.

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