Osmond Advances Orión Project with Low Capex Scoping Study and Rare Earths Collaboration

Scoping Study Focuses on Modular, Low Capex Concentrate Production

Osmond Resources Limited (ASX:OSM) is advancing its Orión EU Critical Minerals Project in Andalucía, Spain, with a Scoping Study centred on producing mineral concentrates rather than refined products. The study, targeting modules processing two million tonnes of run-of-mine ore per annum, aims for a low capital expenditure footprint by focusing on concentrate production as a first step. This modular approach allows Osmond to scale operations progressively across the project's 230 square kilometres.

Initial sample processing has begun with two tonnes of outcrop material sent for testwork to optimise flowsheets. Downstream processing remains a separate consideration, designed to enhance funding and partnership options.

Drilling Expansion Confirms Scale Potential in High-Grade Zones

The company has expanded its second drilling program to 14 holes, targeting extensions of high-grade mineralisation west of previously identified zones AV-01 and SOR-02. Assay results from the North West Region, particularly drill holes NWOR-03 and NWOR-04, confirm significant titanium, zirconium, and rare earth element grades that underscore the project's regional scale potential. These results build on prior findings of heavy mineralisation over a 10-kilometre strike, reinforcing the project's strategic importance in the EU critical minerals landscape.

Osmond anticipates initial assay results from the expanded drilling within the current quarter, which will further inform resource modelling and development plans. The interpretation of sedimentary layers suggests lateral variations in mineral composition, pointing to nuanced geological controls on deposit quality.

Positive Mineral Processing Testwork Highlights Zircon and Monazite Recoveries

Preliminary mineral processing testwork conducted at SGS Lakefield in Canada has demonstrated encouraging results for zircon and monazite concentrates. Gravity and magnetic separation techniques yielded a zircon concentrate grading 50.2% ZrO2 at approximately 70% recovery, with liberation rates near 97%. Monazite flotation tests indicated potential recoveries of around 76%, producing concentrates with 19.4% total rare earth oxides (TREO), including 25% magnetic rare earth oxides relevant for magnet production.

Titanium mineral testwork is ongoing, with preliminary results expected in the next one to two months. Osmond plans to optimise crushing and grinding processes to enhance mineral recovery further, targeting premium-grade zircon concentrates exceeding 66% ZrO2 in future testwork rounds.

Strategic Collaboration with Técnicas Reunidas Targets EU Rare Earth Production

Osmond has formalised a collaboration agreement with Madrid-listed engineering giant Técnicas Reunidas (BME:TR) to develop the EU's first vertically integrated production of mixed rare earth carbonates and oxides. Técnicas Reunidas brings proprietary RARETECH processing technology and engineering expertise, supporting Osmond's ambition to produce monazite-derived mixed rare earth carbonates (MREC) within Europe.

The partnership aims to leverage Spanish and EU funding initiatives, including those under the European Commission's Horizon Program, to advance downstream processing capabilities. A Pre-Feasibility Study for the MREC facility is underway, with completion expected by Q3 2026, alongside a study on high-value magnet rare earth oxides such as neodymium, praseodymium, terbium, and dysprosium.

Spanish Government Boosts Critical Minerals Funding

The Spanish Government's Critical Minerals Plan 2026-2030 has allocated €414 million in new funding, with €150 million earmarked specifically for exploration activities. Osmond's Orión project, containing several EU strategic critical materials, is well positioned to compete for this funding, potentially accelerating exploration and development timelines.

This government support aligns with Osmond's strategy to fast-track the Orión project and capitalise on Europe's drive to secure critical mineral supply chains.

Financial Position and Corporate Updates

Osmond ended the March quarter with A$7.0 million in cash, following exploration expenditure of A$1.1 million and administrative costs of A$587,000. The company surrendered its Yumbarra Project tenement in South Australia to focus resources on its Spanish projects, particularly Orión.

With a clear path towards a Scoping Study completion in the second half of 2026, Osmond is balancing exploration, processing testwork, and strategic partnerships to establish a foothold in the EU critical minerals sector.

Osmond’s progress builds on its earlier confirmation of world-class critical minerals potential at Orión, with the expanded drilling program and low capex focus reinforcing the project's feasibility and strategic value within the EU supply chain low capex concentrate production and confirmed world-class critical minerals potential. The collaboration with Técnicas Reunidas marks a significant step towards developing a vertically integrated rare earths supply chain in Europe rare earth production pathway.