Samso Rooster Talk Episode 71 is with Brett Hazelden, Managing Director and CEO of OD6 Metals Limited (ASX: OD6).
The OD6 story is now one step closer to its Holy Grail with the latest announcement. This latest Rooster Talk is a discussion on what the news mean for the company. Could this be an endorsement of the entire Clay Rare Earth sector?
The latest News - Hot of The Press.
The first conversation I had with Brett Hazelden was on Coffee with Samso with this story - OD6 Metals Limited (ASX: OD6) - The Rare Earth Elements Story.) where my understanding for the Clay Rare Earth sector was initiated. I had to admit I had little foundation then and what I had learnt before was scarce. Now that we have had four lessons with Brett, I am starting to believe that I know this sector.
Figure 1: Project locations for OD6 Metals Limited. (source: OD6 Metals)
The two projects, Splinter Rock and Grass Patch makes OD6 Metals Limited (Figure 1). The latest announcement is critical as it puts the question of "Can they get the REE out?" I feel that this question would have been on many lips and now it is confirmed.
"The current drilling is no longer a guessing game.", Brett Hazelden confidently explains ...
The process is now pretty much a step at a time but one has to feel that things are gearing towards the positive. What is important now is using the announced results and moving into the refinement of the process.
When Brett talks about the path forward, I feel like there is a fair amount of confidence that OD6 knows what they are expecting. An interesting comment that I remember was that the current drilling is no longer a guessing game. They are expecting results as projected.
The geology, which is a common feature in all these type of deposits, are consistent and there are not much variability. This is what Brett has been told by his competent person, who knows the deposit style. What that means is that there will be no surprises from the current drilling program.
Brett reminds us that the potential resource in both the projects are going to be big. He says the potential resource will be comparable to that of Ionic Rare Earths Limited (ASX: IXR). There are already similarities and Brett is optimistic that OD6 will be in the same league or larger. He also spoke of comparisons to another peer, Australian Rare Earths Limited (ASX: AR3).
What are the Key Points of the Announcement?
All system is a go which is the take away point of this Rooster Talk. The much anticipated metallurgical results have come and the results are consistent with OD6's expectations. OD6 now understands the geology and the mineralisation better. The resource building exercise appears to be simpler as management now knows where the better grades and recoveries are located.
The potential future resource is going to be big. The scale is not what investors may be used to as the number is going to be big. The simplistic nature of the geology will also mean that the resource definition process will be easier.
Samso Conclusion
Having the fortune to have followed the OD6 journey for a while has been one of the best feelings of doing this job. I have always said that the business will be on its way forward once some results on the chemistry is known.
Although, this is still very early stage, the results from the latest test indicates consistency moving forward. The recovery rates in the 70% range appears to be what management was looking for as a start. The segregation of the impurities in the coarser fragments is fortuitous. The physical separation of the coarser materials forming the fines will simplify the quality control process.
I was once told that OD6 had a good project. When I first looked at the company and after doing a few Coffee with Samso and Rooster Talks, I agreed. However, the burning question was still about whether they can process the end product.
As I understand from Brett, this is the first step to answering that question with conviction. I think when viewers watch the Rooster Talk, you will feel that there is some level of confidence in his voice. The resource is going to be big and he says, we only need 5% of that.
Chapters:
00:00 Start
00:26 Introduction
00:59 Brett introduces the Findings from the announcement.
01:47 The details of the announcement.
06:12 Process of Defining the Quality of the REE End Product.
09:00 The Acid usage Discussion
11:12 Investors Expectations - Comparisons to Peers
14:56 Resource potential of OD6 4 projects.
16:04 Prop Prospect
18:28 It is all about the Stripping Ratio.
18:58 The "Good" Areas.
19:50 The perfect place for a project.
21:43 Market Sentiment - Critical Minerals Demand
23:53 News Flow
25:06 Drilling results should be consistent with previous drilling.
26:42 Easy to resource Clay REE Geology.
27:58 The Results Confirm that OD6 will Work.
28:51 Conclusion
PODCAST
This is a good time to download the first Ebook (FREE) from Samso as it is all about VMS (Volcanogenic Massive Sulfides).
About Brett Hazelden
Managing Director & Chief Executive Officer
BSc, MBA, AICD
Mr Hazelden is a Metallurgist who brings over 25 years’ experience serving the Australasian resources industry. His experience includes being a Company Director, Managing Director, CEO, Project Manager, Study Manager and originally a Metallurgist in an operating environment.
Mr Hazelden brings a diverse range of capabilities from exploration, project development studies, research and development, project approvals, offtake agreements, equity raising, debt financing plus mergers and acquisitions. He has worked across multiple commodities including potash, gold, copper, zinc, lead, iron ore, tungsten, salt, diamond and now rare earth sectors. Most recently, Brett was the Co-founder and Managing Director/CEO of Kalium Lakes (ASX:KLL).
Mr Hazelden was appointed as a Director on 1 April 2022.
Mr Hazelden is not considered to be an independent Director as he is engaged in an executive capacity.
About OD6 Metals Limited (ASX: OD6)
OD6 Metals is an Australian public company with a purpose to pursue exploration and development opportunities within the resources sector. The Company holds a 100% interest in the Splinter Rock Project and Grass Patch Project which are located in the Goldfields-Esperance region of Western Australia, about 30 to150km north of the major port and town of Esperance.
The projects are considered prospective for clay rare earth elements (REEs), with the Company’s aim of delineating and defining economic resources and reserves to develop into a future revenue generating operational mine. Clay REE deposits are currently economically extracted in China who is the dominant world producer.
Rare earth elements (in particular, Nd and Pr), are becoming increasingly important in the global economy, with uses including advanced electronics, permanent magnets in electric motors and electricity generators (such as wind turbines) and consumer electronics.
Why OD6 Metals?
Emerging REE major new clay province in WA, potentially competitive with China’s deposits.
Dominant land position with over 4,800 km2
Located close to Esperance port, sealed roads and renewable energy infrastructure.
Extensive Clay REE in 10 to 37m thick blanket over very large areas .
Wide intersections of TREO with excellent Nd-Pr concentrations of 20%
Multiple targets for potentially globally significant REE resources.
Excellent regional metallurgy.
Clay REE’S are typically low capital intensity and high margin product.
Significant supply shortage forecast due to rapid demand increase for renewable power, electric vehicles and electronics.
Critical metals being prioritised by Governments around the world (need for diversity of supply away from China).
Disclaimer
The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer.
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