Regulatory Hurdle Cleared as OD6 Advances Copper and Rare Earth Projects
OD6 Metals has reported strong high-grade copper results from its maiden drilling at Gulf Creek, NSW, alongside progress in rare earth metallurgical testing and closure of a regulatory investigation.
- Maiden drilling at Gulf Creek intercepts massive sulphide zones with high-grade copper, zinc, and silver
- Phase 2 drilling approvals secured for ~7,500m targeting untested strike extensions
- NSW Resource Regulator investigation finalized with minor penalty paid
- Ongoing advanced metallurgical testing at Splinter Rock Rare Earth Project with positive outcomes expected
- Corporate cash balance remains solid at A$1.09 million following $1.17 million placement
Strong Maiden Drilling Results at Gulf Creek
OD6 Metals Limited has delivered encouraging results from its maiden drilling program at the Gulf Creek Copper Project in New South Wales. The program intercepted massive to semi-massive sulphide zones, confirming historically mined high-grade copper mineralisation beneath old workings. Notable assay highlights include 8 metres at 1.41% copper, 1.26% zinc, and 7.08 grams per tonne silver, with peak intervals reaching over 4% copper in some holes. These results validate the company’s targeting strategy, which leverages a strong correlation between magnetic geophysical anomalies and mineralisation.
Expanding Exploration with Phase 2 Drilling
Building on the maiden program’s success, OD6 has secured regulatory approvals for a substantial Phase 2 drilling campaign comprising 25 reverse circulation and diamond drill holes totaling approximately 7,500 metres. This next phase will focus on untested strike extensions identified through magnetic modelling, including the Big Bend, Eastern Limb, and Northwestern Zones. These targets represent over 3 kilometres of untested mineralised strike within immediate mine stratigraphy, offering significant potential to delineate a large-scale volcanic massive sulphide (VMS) system.
Regulatory Matters Resolved
The company also announced the finalisation of an investigation by the NSW Resource Regulator related to its Gulf Creek operations. A total penalty of $7,500 was paid, and the matter is now closed, allowing OD6 to proceed unimpeded with exploration activities. This resolution came swiftly and did not materially impact the company’s operational momentum.
Progress at Splinter Rock Rare Earth Project
In Western Australia, OD6 continues to advance its Splinter Rock Rare Earth Project with ongoing Phase 4 metallurgical testing conducted in partnership with ANSTO. The work focuses on impurity removal and refining processes to optimise rare earth extraction from clay-hosted deposits. Early indications are positive, with multiple potential pathways for processing being finalised. Additionally, a peer-reviewed geological research paper published during the quarter highlights innovative statistical methods to characterise regolith-hosted rare earth deposits, underpinning the project’s strong economic potential.
Corporate and Financial Position
OD6 Metals completed a $1.17 million placement during the quarter, bolstering its cash position to approximately A$1.09 million at quarter-end. Exploration expenditure for the period was A$586,000, reflecting active field programs and laboratory work. The company holds no borrowings and continues to explore funding options to support its aggressive exploration and development agenda. Management remains confident in securing the necessary capital to advance its projects.
Bottom Line?
With high-grade copper confirmed and rare earth testing progressing, OD6 Metals is poised for a pivotal exploration phase, though funding and drilling results will be key to watch.
Questions in the middle?
- How will Phase 2 drilling results at Gulf Creek influence the project’s resource potential and valuation?
- What specific outcomes and timelines can investors expect from the ongoing metallurgical tests at Splinter Rock?
- Given the limited cash runway, what are OD6’s concrete plans for securing additional funding to sustain operations?
