Od6 Metals Ltd. · ASX:OD6
Od6 Metals — ANU REE Conference 2023
46 slides from Od6 Metals's conference presentation, Nov 16, 2023
Slide 1: Australian Critical Rare Earth Minerals: The REE Potential of the Esperance District
For personal use only Australian Critical Rare Earth Minerals The REE Potential of the Esperance District Technical Presentation ANU REE Conference 16 November 2023 ASX I OD6 1
Slide 2: Important Information
Important Information For personal use only Disclaimer Forward Looking Statements This presentation has been prepared by OD6 Metals Ltd (ACN 654 839 602) (OD6) and is current as Certain statements contained in this presentation, including information as to the future financial or at the date of this
Slide 3: Globally Significant Clay Hosted Rare Earth Discovery
Globally Significant Clay Hosted Rare Earth Discovery 100% owned project areas in one of the world’s great mining countries For personal use only • 344Mt @ 1,308ppm TREO Inferred Resource at a 1,000ppm cut off grade at Splinter Rock • MagREO represent an average of ~23% of TREO grade • Thick 10-80m
Slide 4: Esperance District Geological Setting
For personal use only Esperance District Geological Setting ASX I OD6 4
Slide 5: Esperance Rare Earth Explorers
Esperance Rare Earth Explorers Esperance district has extensive volumes of clays identified For personal use only 5
Slide 6: Regional Geology
Regional Geology Multiple Clay Prospects in different geological formations For personal use only • Yilgarn Tectonic plate boundary zone, intruded by granitoids approximately 1.2 billion years ago • Following glaciation, approximately Splinter 250 million years ago, isostatic Grass Rock rebound resu
Slide 7: OD6 Splinter Rock Project Geology
For personal use only OD6 Splinter Rock Project Geology ASX I OD6 7
Slide 8: Splinter Rock Geology
Splinter Rock Geology Heavily enriched in Rare Earths A For personal use only • Splinter Rock tenure and exploration model targeting clay basins fed by weathering of Booanya granites X • The strong enrichments in REE distinguishes Y Booanya granites from all other granite groups in the Esperance are
Slide 9: Conceptual Geological Formation
Conceptual Geological Formation Collaborating with CSIRO to model the clay basins For personal use only Low High 9
Slide 10: Highly Targeted Exploration Program
Highly Targeted Exploration Program Clay area and thickness strongly correlate with Airborne Electromagnetic survey (AEM) For personal use only AEM facilitated mapping of clay locations, expanse, potential clay thickness and surface cover depth, with over 400km2 of clay basins covered 10
Slide 11: Regional Ground Water Highly Acidic and Saline
Regional Ground Water Highly Acidic and Saline CSIRO ET Hydro database provides important insight For personal use only Acidic waters with a pH of 3 to 4 have most likely leached rare earths from weathered granite into solution, mobilised them and re-precipitated into ionic and secondary REE mineral
Slide 12: Elevation Changes a Key Feature
Elevation Changes a Key Feature Weathering and Transportation needs consideration For personal use only • The significant elevation change referred to as the Ravensthorpe Ramp is a key exploration driver of potential clay types, deposition thickness, grade and REE recoveries • Granites, rich in REE
Slide 13: Prospect Geological Setting
Prospect Geological Setting Associated characteristics allow for the following observations For personal use only Centre: Large clay basin within an elevated tableland. REE have potentially pooled in this area from Booanya granite to the north. Scrum: Magnetic dipole, with the northern area coincidi
Slide 14: CSIRO Hylogger Preliminary Data
CSIRO Hylogger Preliminary Data Aiding geo-metallurgical characterisation For personal use only • REEs deposited into thick kaolin channels/basins • Black carbonaceous clays are a source for Flanker TREO ppm Clay mineralogy natural acid groundwater (and low in REE) Scope 1:2610; 2609 Points, r=0.618
Slide 15: JORC Mineral Resource Estimate
For personal use only JORC Mineral Resource Estimate ASX I OD6 15
Slide 16: Mineral Resource Modelling
Mineral Resource Modelling Less than 5% of identified clay basins included in Mineral Resource Estimate For personal use only Centre Prospect 149Mt @1,423 ppm TREO Scrum Prospect 120Mt @1,222 ppm TREO Prop Prospect 33Mt @1,180 ppm TREO Flanker Prospect 42Mt @1,246 ppm TREO For full Mineral Resource
Slide 17: Splinter Rock Mineral Resource Estimate
Splinter Rock Mineral Resource Estimate At 1,000 ppm cutoff grade For personal use only Tonnes TREO Pr6O11 Nd2O3 Tb4O7 Dy2O3 MagREO MagREO Prospect Category (Mt) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (% of TREO) Centre Inferred 149 1,423 71.2 244.6 2.6 14.1 329 23.1 Scrum Inferred 120 1,222 57.7 208.1
Slide 18: Splinter Rock Mineral Resource Estimate
Splinter Rock Mineral Resource Estimate Focused on quality over quantity of resource For personal use only P Cut-off grade (ppm TREO) 400 Tonnes (Mt) 1,141 TREO (ppm) 869 Contained TREO MagREO (k tonne) 992 (ppm) 198 MagREO (% of TREO) 22.7 Contained MagREO (k tonnes) 225 600 838 1,006 842 230 22.9
Slide 19: MRE TREO Value and Distribution
MRE TREO Value and Distribution Nd, Pr, Dy, Tb represent ~90% of potential contained value For personal use only TREO REE value TREO % distribution Value Distribution 54.7% Nd2O3 16.8% Nd2O3 MagREO 15.0% Pr6O11 4.8% Tb4O7 10.4% Dy2O3 1.1% 9.0% Tb4O7 0.2% La2O3 Pr6O11 MagREO 2.6% Gd2O3 1.5% is ~90% 1
Slide 20: Assay Method Needs to be Considered
Assay Method Needs to be Considered Consistency of reporting is key, but be aware of assay differences For personal use only All geological drill assays at Splinter Rock were performed utilising the ALS 4-acid soluble digestion method as opposed to the ALS Lithium Borate Fusion Digest method. Typica
Slide 21: Resource Expansion
For personal use only Resource Expansion ASX I OD6 21
Slide 22: Exceptional Phase Drilling Success
Exceptional Phase 3 Drilling Success Real and substantial potential for Mineral Resource expansion For personal use only Significant Results recently announced at Centre Prospect1 • 58 metres at 2,060ppm TREO (21.8% MREO) from 21 metres (SRAC0356) • 77 metres at 1,429ppm TREO (22.5% MREO) from 18 me
Slide 23: Centre Prospect Set to Grow Significantly
Centre Prospect Set to Grow Significantly Now 14km x 5km with 77% of drill holes intercepting grades >1,000ppm For personal use only 23
Slide 24: Inside Centre is a Thick High-Grade Area
Inside Centre is a Thick High-Grade Area 2km x 1km, up to 69m thick, with grades of 1,400ppm to 2,200ppm TREO For personal use only 24
Slide 25: 2024 Infill and Regional Drilling
2024 Infill and Regional Drilling Continue to focus on identifying the “Best of the Best” For personal use only Forward program, 2024 exploration focus: • Infill drilling at Centre and Prop • Expansional/extensional drilling at Centre, Flanker and Scrum • Testing new regional drilling at Loosehead a
Slide 26: Metallurgy
For personal use only Metallurgy ASX I OD6 26
Slide 27: Strong Metallurgical Results
Strong Metallurgical Results Identifying the best metallurgical areas For personal use only • Very high metallurgical recoveries achieved using Centre Prospect simple acid leach 54% to 78% recoveries • Average 61% MagREO recovery (range 43-87%) at (average 62%) 20g/l HCl Scrum three samples Prospect
Slide 28: Indicative Processing Steps
Indicative Processing Steps Simplified process map to deliver rare earth products For personal use only MREC/H Excavate Mine near surface clays Transport Clays to processing plant Screen Coarse material removal Acid leach Rare Earths leached into solution Purify Removal of impurities Precipitate Rar
Slide 29: Acid Consumption and Reagent Costs
Acid Consumption and Reagent Costs Important to consider total reagent requirements, not just one step in the process For personal use only • Vendor discussions confirm viability of potential site-based chlor-alkali facility • Indicative pricing for a chlor-alkali electrolyser is approximately £3M e
Slide 30: Clay-hosted REE Projects – what's the difference?
Clay-hosted REE Projects – what’s the difference? Processing steps are similar, mainly using different reagents and time For personal use only OD6 Proposed Flowsheet Aclara & Meteoric Proposed Flowsheet No drill & blast No crushing No milling No flotation No high temperature Key Points to Note Reage
Slide 31: Metallurgical Test Program Moving Forward
Metallurgical Test Program Moving Forward Working with ANSTO to methodically optimise the process For personal use only • Review leach performance of upgraded fines fractions following screening @75 µm • Undertake sighter bottle roll tests of selected Phase 3 and 2 drill samples • Bench scale tests
Slide 32: Economic Drivers and Comparisons
For personal use only Economic Drivers and Comparisons ASX I OD6 32
Slide 33: What does an Economic Project Look Like?
What does an Economic Project Look Like? Most analysts in the sector are using 5Mtpa for a key reason – REVENUE For personal use only TREO Clay volume TREO Metallurgical MagREO produced % Revenue p.a. @ produced AUD;USD treated (tpa) (ppm) recovery (tpa) @23% (tpa) payable US$50/kg TREO Key Value Dr
Slide 34: The Premier Australian Clay-hosted REE Project
The Premier Australian Clay-hosted REE Project Already 450k tonnes of contained TREO with 103k tonnes of high value MagREE For personal use only Rare Earth Element Deposits Enterprise value (bubble size reflected contained TREO) (A$M) 3000 Targeting Mineral Resource expansion 447 High valuation re-r
Slide 35: Maximising Economic Potential
Maximising Economic Potential For personal use only All key elements present for high economic potential at Splinter Rock TREO MagREO Grade MagREO Resource Size Leachability Exceptional Valuable magnet Extensive clay High metallurgical clay rare earth grades rare earth elements thickness with recove
Slide 36: ESG and Corporate
For personal use only ESG and Corporate ASX I OD6 36
Slide 37: Sustainably Creating Value
Sustainably Creating Value Acting with integrity to responsibly deliver rare earth resources for a low carbon future For personal use only Our sustainability priorities: ESG Workplace health Aboriginal Business ethics and saftey and engagement, mental health heritage and Our aim is to minimize Tradi
Slide 38: Using Green Power to Lower Operating Costs
Using Green Power to Lower Operating Costs For personal use only Rare Earths are key to Source: https://pacificenergy.com.au/project/esperance-power-station/ decarbonisation Our goal is to build a mine that minimises greenhouse gas emissions and long term power costs Ultimately Net Zero is the goal
Slide 39: Pursuing The Best Of The Best
Pursuing The Best Of The Best A disciplined approach to maximising value For personal use only Explore Design Evaluate • Identify high-grade, • Optimise leach • Pursue “Best of the ‘sweet-spot’ REE recovery and Best” grade, recovery, zones impurity removal stripping ratio and acid consumption • Aggr
Slide 40: Investment Highlights
Investment Highlights For personal use only 1 Dominant land holding near Esperance port 100% interest in a vast tenement package with multiple rare earth mineralised prospects 2 Targeting critical rare earth element materials Consumption of rare earth magnets expected to triple by 2035 Globally sign
Slide 41: Appendix
For personal use only ASX I OD6 Appendix
Slide 42: Corporate snapshot
Corporate snapshot High calibre leadership team, tight capital structure and well-funded For personal use only Capital Structure ASX: OD6 Price per share1 A$0.19 Total number of shares on issue2 102.45M Performance rights and options2 32.70M Market capitalisation (undiluted)1 A$19.46M Dr Darren Mr B
Slide 43: Insatiable Demand For Rare Earth Magnets
Insatiable Demand For Rare Earth Magnets A growing MagREO rare earth demand and supply deficit For personal use only MagREO demand forecast (t) 1,2 • Transitions from carbon to renewable economy - strong demand for critical MagREO Approximately 8.6% CAGR 246,111 • 8.6% expected compound annual growt
Slide 44: New Australian Supply Urgently Needed
New Australian Supply Urgently Needed Mine concentration is a significant risk to the global supply chain For personal use only 2022 Existing global mine production (t) 140,000 China continues to dominate both mine production and downstream processing Diversity of supply is a priority for government
Slide 45: Appendix A: Peer calculations and reference details
Appendix A Peer calculations and reference details For personal use only ASX Measured: Indicated: Inferred Market capitalisation Net cash Enterprise value Company Reference code Ratio (Mt) (A$) (A$) (A$) Splinter Rock Maiden Mineral Resource, 18 July 2023 OD6 Metals OD6 0 : 0 : 344 A$ 19M A$ 2M A$ 1
Slide 46: Contact us
For personal use only Contact us Registered Office c/o LCP Group Level 1, 50 Kings Park Road West Perth WA 6005 Phone: +61 8 6189 8515 Email: info@od6metals.com.au Share Registry Computershare Investor Services Level 11, 172 St Georges Tce Perth WA 6000 www.od6metals.com.au ASX I OD6