The junior explorer's maiden inferred resource covers four clay-hosted prospects at its Splinter Rock project and totals 334 million tonnes grading 1308 parts per million total rare earth oxide using a 1000ppm cut-off.

 

The standout deposit is Centre, which hosts 149Mt at 1423ppm, with mineralisation starting from near the surface and up to 70m thick. Magnet rare earths are about 23% of the mix.

 

OD6 follows West Cobar Metals (43.5Mt at 1192ppm TREO), Meeka Metals (98Mt at 890ppm) and Heavy Rare Earths (28Mt at 625ppm) into the ranks of resource owners around Esperance and delivers perhaps the largest and highest-grade resources in Australia - so far.

 

The nation's most advanced clay-hosted resource is Australian Rare Earth's 101Mt at 818ppm Koppamurra deposit in South Australia.

 

Managing director Brett Hazelden said with OD6 continuing to drill, having tested just 5% of its defined clay basin area, there was substantial potential for additional growth, and as it better understands the geology it can focus on the best areas in terms of grade, magnet REO content, thickness and grade.

 

Consulting geologist Jeremy Peters from Burnt Shirt said mineralisation at Splinter Rock derived from weathering of granite of the Booanya suite and had grades that were as good, or better, than those being exploited globally.

 

Preliminary metallurgy indicates that the REEs are amenable to conventional acid leach processing techniques with high recoveries.

 

Splinter Rock covers some 2579sq.km some 150km northeast of Esperance port and is complemented by OD6's Grass Parch project to the west.

 

While less explored, initial drilling at Grass Patch returned up to 3340ppm TREO with up to 38.5% MREO, and has focused future work at Belgian, Circle Valley and Scaddan.

 

OD6 has A$3.5 million cash remaining.

 

Shares in the year-old explorer were up 20% today at 27c, capitalising it at $28 million.

 

The stock has traded at 15-70c over the past year.