The OD6 Metals Ltd (ASX: OD6) share price has been a very strong performer on Thursday.
In afternoon trade, the rare earths explorer's shares are up 25% to 29.5 cents.
At one stage, the OD6 share price was up as much as 104% to a record high of 47 cents.
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Why is the OD6 share price rocketing higher?
Investors have been buying OD6's shares today following the release of initial assay results from the recently completed drilling campaign at its Splinter Rock Project northeast of Esperance in Western Australia.
According to the release, Splinter Rock was found to contain widespread, thick clay hosted rare earth element (REE) mineralisation.
OD6 advises that assays received from 32 of 65 holes have returned significant Total Rare Earth Oxides (TREO) grades and thickness using a 750ppm cut-off grade with clay thickness intervals up to 33m. Magnetic rare earth oxides make up an average of 22.5%, with critical rare earth oxides averaging 24.2% plus heavy rare earth oxides averaging 10.7%.
'The potential is massive'
OD6's managing director, Brett Hazelden, appeared delighted with the assay results and suggested that the Splinter Rock project has the potential to be a globally significant multigenerational asset. He commented:
These initial rare earth assay results are outstanding and represent some of the highest grades and thickest clayhosted rare earth intersections seen in Australia. The extent and consistency of these shallow, high-grade clays have resulted in four significant prospects being identified that are between four and seven kilometres in width which are open in length, on our 2,579km2 Splinter Rock project.
Importantly, these drill results validate historic assays, plus they extend the discovery of clay-hosted rare earths across a new drill line perpendicular to the original line. This bodes well for future drilling, which we anticipate will significantly grow the known mineralised area.
The Splinter Rock Project, with its proximity to port and renewable energy generation potential, now has the very real potential to be a globally significant, world class group of mineral systems that could be a multigenerational asset as the world transitions to the decarbonised economy. The scale of these clays is hard to comprehend when you start talking multiple kilometres in one direction at a thickness of between 10 to 30m. The potential is massive.
