A REE Story is now One Step Closer to Production - OD6 Metals Limited (ASX:OD6)

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 annoucnement. 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 with Brett Hazelden on the first Coffee with Samso (OD6 Metals Limited (ASX: OD6) - The Rare Earth Elements Story.), my understanding for this Clay Rare Earth sector was initiated. I had to admit that what I had learnt before was scarce and had little foundation. now that we have had four lessons, I am starting to believe that I know this sector. The two projects, Splinter Rock and Grass Patch makes OD6 Metals Limited. 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. As Brett explains, the process is now pretty much a step at a time but one has to feel that things are gearing towards the positive rather than not. 

 

As Explained by Brett Hazelden

What it boils down to now is using the announced results and moving into the refinement of the process. When Brett talks about the path forward, it feels like there is a fair amount of confidence. It almost feels like they know 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 to be much about the same. 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. 

 

What are the Key Points of the Annoucnement?

All system is a go. That is the take away point of the Rooster Talk. The much anticipated metallurgical results have come and the results are consistent with the company's expectations. The company now understands the geology and the mineralisation better. The resource building exercise appears to be simpler as management now knowing 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 have given news that are consistent with 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 form 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 Talk, 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 annoucnement.

01:47 The details of the annoucnement.

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