OD6 Metals (ASX: OD6) – Major Flowsheet Advancements at Splinter Rock Rare Earth Project.
- Noel Ong
- 6 days ago
- 6 min read
Announcement
OD6 Metals Limited (ASX: OD6) has released an update on the ongoing development work at its flagship Splinter Rock Rare Earth Project in Western Australia (Figure 1). The announcement, dated 2 September 2025, confirms significant flowsheet improvements designed to enhance project economics, reduce operating costs, and provide long-term flexibility for downstream processing.
Figure 1: Splinter Rock Rare Earth Project (source: OD6)
At the centre of this update is the confirmation of a Chlor-Alkali Facility (CAF) as part of the process design. This inclusion represents a step-change for the project, delivering reagent cost savings and unlocking pathways for the potential production of high-value separated rare earth oxides
Key Highlights - Building a Rare Earths Project.
Chlor-Alkali Facility (CAF) (Figure 2):
The CAF will allow onsite production of hydrochloric acid (HCl) and sodium hydroxide (NaOH), eliminating costly transport of liquid reagents from Perth (~800km). This materially reduces logistics costs and environmental footprint.
Figure 2: BICHLOR™ Electrolysers (source: OD6)
Feedstock Advantage:
Western Australia’s abundant solar sea salt (NaCl), alongside water and energy, will be utilised as the primary input for the CAF. This provides a secure and low-cost reagent supply.
Cost Savings & Economics:
The capital outlay for a CAF unit (~A$6M) is considered modest relative to the significant long-term operating cost reductions. Vendor data suggests each electrolyser could support processing up to 5–6Mtpa of ore, producing ~62ktpa HCl and ~69ktpa NaOH.
Product Quality:
High-quality Mixed Rare Earth Hydroxide (MREH ~59% TREO) has already been demonstrated using onsite NaOH as the precipitation agent. Benchmark payability ranges between 70–85% of REO basket value.
Future Flexibility:
The CAF positions OD6 for the potential selective production of Nd, Pr, Dy and Tb oxides via a chloride-based solvent extraction process, enabling 100% payability for these critical magnet rare earths.
Strategic Importance
The CAF provides more than just cost savings—it adds strategic security. By producing reagents onsite, OD6 reduces dependency on third-party suppliers, secures its chemical inputs, and lowers the carbon footprint of operations.
Additionally, ANSTO’s metallurgical testwork has confirmed a robust multi-stage pathway including heap leach, nanofiltration, ion exchange, impurity removal, and precipitation (Figure 3). This process consistently recovers and upgrades Nd, Pr, Dy, and Tb, which collectively represent the most valuable subset of the REE basket.
Figure 3: Indicative Processing Steps (source: OD6)
Next Steps
OD6 has outlined the following forward program:
Optioneering Study: Ongoing review of testwork and competing flowsheets with CPC Engineering and ANSTO to identify the most scalable and cost-effective pathway.
Drilling Program: A diamond drill campaign commencing in September to provide 1.5–2.5 tonnes of REE-bearing material for ANSTO’s bulk-scale testwork.
Bulk Testing: Scale-up heap leach and impurity removal tests, producing ~1kg of MREC for sample distribution and offtake discussions.
Engagements: Continued discussions with potential offtake partners, government stakeholders, and financiers.
Managing Director Brett Hazelden commented:
“The study conducted, in collaboration with CPC Engineering, confirms that the use of a Chlor-Alkali Facility (CAF) to produce our reagent needs onsite will add substantial value at Splinter Rock. The modest capital cost is strongly outweighed by the substantial savings in operating costs, driving a significant uplift in project economics.
Importantly, having a CAF on site not only reduces operating costs but also unlocks strategic flexibility, providing the two critical reagents required for a chloride-based Solvent Extraction process capable of selectively producing Nd, Pr, Dy and Tb oxides. This outcome would enable 100% payability for those high-value products.
The Optioneering process is well advanced, benchmarking multiple technically viable flowsheets to determine the optimal economic, scalable, and sustainable development path forward.”
About OD6 Metals
OD6 Metals is an Australian public company focused on critical minerals development, with two key assets:
Splinter Rock Rare Earth Project (WA):
One of Australia’s largest clay-hosted REE deposits, with an Indicated Resource of 119Mt @ 1,632ppm TREO and an Inferred Resource of 563Mt @ 1,275ppm TREO (~23% MagREE). The project concept is based on heap leach development and long-life potential.
Gulf Creek Copper-Zinc VMS Project (NSW):
A historically high-grade copper mine where modern exploration has defined new high-grade mineralisation and identified over 10km of untested strike (Figure 4).
Figure 4: Plan view of Phase 1 drilling at Gulf Creek Copper (source: OD6)
Samso Concluding Comments
The latest update from OD6 Metals highlights the significance of flow sheet innovation in the rare earths sector. The integration of a Chlor-Alkali Facility at Splinter Rock is more than just a cost-saving measure – it is a step toward operational independence, environmental efficiency, and product flexibility.
For investors, the narrative here is about positioning. Splinter Rock already carries the scale and grade to attract attention, but it is the ability to lower costs and improve payability through technically sound pathways that makes the project increasingly compelling. As we have seen across the rare earths space, those companies that can convert resource size into a practical, low-cost, and scalable operation will define the next generation of supply.
The coming months will be telling. Bulk-scale testwork, drilling, and offtake discussions will provide clarity on both technical execution and market appetite. The strategic involvement of ANSTO and CPC Engineering adds credibility, but as always, the proof will come from results delivered and economics confirmed.
At Samso, we continue to remind readers that while rare earths remain central to the energy transition narrative, execution risk is real. #SamsoNews is about cutting through the noise and anchoring analysis in evidence. As always – DYOR (Do Your Own Research).
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