OD6 Metals reports a transformative quarter with the acquisition of the historic Gulf Creek Copper Project revealing high-grade copper assays, alongside promising metallurgical advances at its Splinter Rock rare earths project. The company enters 2025 with strong cash reserves and active exploration programs.
- Acquisition of Gulf Creek Copper Project with historic high-grade VMS copper-zinc mineralisation
- Surface samples up to 12.35% copper and multiple high-priority geophysical targets identified
- Heap leach tests at Splinter Rock achieve 79% recovery of magnetic rare earth elements, simplifying processing
- Strong cash position of A$1.75 million supports ongoing exploration and development
- Phase 1 drilling at Gulf Creek scheduled for Q1 2025, with extensive geophysical and geochemical surveys underway
Historic Copper Acquisition Sparks New Exploration Momentum
OD6 Metals Limited has closed out 2024 with a strategic acquisition of the Gulf Creek Copper Project in New South Wales, a site historically renowned for its exceptionally high-grade volcanogenic massive sulphide (VMS) copper-zinc deposits. The project, dormant for over a century, is now being re-examined with modern exploration techniques that have already uncovered surface rock chip samples containing up to 12.35% copper, alongside significant silver and zinc by-products.
Geophysical modelling using drone magnetic data has revealed multiple high-priority targets, including extensive magnetic anomalies that suggest the presence of repeat and extensional VMS structures. These findings underscore the potential for both brownfield and greenfield discoveries along more than 3 kilometres of untested strike near the historic workings and over 10 kilometres across the tenement.
Advancing Rare Earths with Breakthrough Metallurgical Results
Meanwhile, at the Splinter Rock Project in Western Australia, OD6 has reported metallurgical test results that could be a game changer for the economics of clay-hosted rare earth element (REE) deposits. Heap leach column tests conducted by ANSTO have demonstrated a 79% recovery rate of magnetic rare earth elements (MagREEs), significantly outperforming conventional stirred tank leach methods.
This advancement suggests a simpler, lower-cost processing route that could eliminate several capital-intensive steps, reducing both operating and capital expenditures. The company has rationalised its tenement holdings to focus on the most prospective clay basins, enhancing operational efficiency and cost management.
Financial Position and Forward Outlook
OD6 Metals maintains a robust cash balance of A$1.75 million as of December 31, 2024, underpinning its exploration and development activities. The company reported exploration expenditure of A$285,000 during the quarter, reflecting active fieldwork and laboratory testing. Importantly, the company received a A$620,000 R&D tax offset, supporting its ongoing innovation efforts.
Looking ahead, OD6 plans to commence Phase 1 drilling at Gulf Creek in the first quarter of 2025, targeting the high-grade mineralisation zones identified through recent sampling and geophysical surveys. Concurrently, metallurgical test work at Splinter Rock will continue, focusing on impurity removal and process optimisation to further enhance rare earth recovery and project viability.
Managing Director Brett Hazelden emphasised the strategic positioning of OD6 Metals, stating that the combination of critical commodities, copper and rare earths, alongside strong project fundamentals, places the company in a favourable position to capitalize on market opportunities in 2025.
Bottom Line?
With high-grade copper targets and breakthrough rare earth processing advances, OD6 Metals is poised for a pivotal year ahead.
Questions in the middle?
- Will Phase 1 drilling at Gulf Creek confirm the extent and continuity of high-grade copper mineralisation?
- How will ongoing metallurgical optimisations at Splinter Rock impact the project's capital and operating cost profile?
- What are the potential timelines and capital requirements for advancing Gulf Creek from exploration to development?