OD6 Metals Achieves Chlor-Alkali Breakthrough at Gulf Creek Discovery

OD6 Metals Unlocks Major Cost Savings with Chlor-Alkali Breakthrough at Splinter Rock

OD6 Metals has confirmed a significant advancement in its Splinter Rock Rare Earth Project with the inclusion of a Chlor-Alkali Facility (CAF) that promises to deliver substantial operating cost savings and strengthen the overall project economics. This development comes as the company continues to demonstrate its ability to produce premium rare earth products at Splinter Rock.

Game-Changing Onsite Reagent Production Revolutionises Splinter Rock Economics

The addition of a Chlor-Alkali Facility represents a major strategic development for OD6 Metals' Splinter Rock Rare Earth Project. This facility will produce critical reagents like Hydrochloric Acid (HCl) and Sodium Hydroxide (NaOH) directly onsite, eliminating the need to transport these chemicals approximately 800km from Perth.

"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," says Managing Director Brett Hazelden.

The OD6 Metals chlor-alkali breakthrough delivers multiple operational advantages:

• Eliminates expensive transport of liquid reagents from Perth
• Reduces environmental footprint through local production
• Utilises abundant and low-cost solar sea salt (NaCl) from Western Australia
• Enables high-quality Mixed Rare Earth Hydroxide (MREH) production with ~59% TREO
• Opens pathway for selective production of high-value magnetic rare earths (Nd, Pr, Dy, Tb)

The capital requirements are relatively modest at ~A$6 million per electrolyser unit, with each unit capable of processing up to 5-6 million tonnes per annum of clay ore, producing approximately 62,000 tonnes of HCl and 69,000 tonnes of NaOH annually.

Understanding the Chlor-Alkali Process: A Technical Breakthrough

The OD6 Metals chlor-alkali breakthrough represents a technological solution that perfectly addresses Splinter Rock's operational needs. But what exactly is this process?

At its core, a Chlor-Alkali Facility uses electrolysis to split salt (NaCl) dissolved in water into its component elements. Electric current passes through salt brine to produce hydrogen, chlorine, and sodium hydroxide, which can then be combined to create hydrochloric acid.

The process follows these chemical reactions:

1. 2H₂O (l) + 2NaCl (aq) → H₂ (g) + Cl₂ (g) + 2NaOH (aq)
2. H₂ (g) + Cl₂ (g) → 2HCl (g)

This technology is particularly valuable for Splinter Rock because:

• HCl is essential for heap leaching to extract rare earths from clay deposits
• Over 80% of HCl can be recycled using NanoFiltration technology
• NaOH is crucial for impurity removal and precipitation processes
• Both reagents enable production of high-value Mixed Rare Earth Hydroxide

The BICHLOR™ Electrolyser technology being considered consumes approximately 1,990kWh per tonne of NaOH produced, with OD6 investigating hybrid renewable energy systems to power the facility.

Advanced Processing Pathway Demonstrates Technical Viability

OD6 and its partner ANSTO have successfully developed a multi-stage processing pathway that efficiently extracts and purifies rare earth elements from Splinter Rock's clay deposits. This advanced 3D modeling of the larger mineral system has been crucial for optimizing the extraction process:

1. Heap Leaching – Simple, low-acid usage leaching of rare earth-bearing clays
2. Nanofiltration – Recycling of acid, concentration of REEs, and reduction of liquid volume
3. Ion Exchange – Concentration of rare earth elements and enhanced removal of impurities
4. Impurity Removal – Final purification to meet high product quality specifications
5. Product Precipitation – Recovery of high-grade Mixed Rare Earth Carbonate or Hydroxide

The final products contain elevated concentrations of the high-value magnetic rare earths (Nd, Pr, Dy, Tb) that command premium pricing in the permanent magnet supply chain. Current benchmark payability for these products typically ranges between 70-85% of REO basket value.

Strategic Positioning for Higher-Value Products

The inclusion of a CAF creates a strategic opportunity for OD6 to potentially move up the value chain. With onsite production of HCl and NaOH, the company gains the capability to implement a chloride-based Solvent Extraction (SX) process that could selectively produce individual oxides of neodymium, praseodymium, dysprosium, and terbium.

"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," explains Hazelden.

This advancement would enable 100% payability for these high-value products compared to the 70-85% typically achieved with mixed rare earth products, representing a significant potential uplift in project economics. Such developments align with broader industry trends seen in projects like the Gold Mountain rare earth project.

The Science Behind the OD6 Metals Chlor-Alkali Breakthrough

The chlor-alkali process has been used in industrial chemical production for decades, but its application to rare earth processing represents an innovative approach to cost reduction and process improvement.

The BICHLOR™ Electrolyser technology OD6 is considering uses membrane cell technology, which separates the anode and cathode compartments with an ion-selective membrane. This prevents the reaction products from mixing while allowing sodium ions to pass through.

Key benefits of this specific electrolyser technology include:

• High energy efficiency compared to older chlor-alkali technologies
• Compact design requiring minimal footprint
• Scalable production capacity
• Ability to operate efficiently at various production rates

The economic advantages of the OD6 Metals chlor-alkali breakthrough become particularly evident when considering the logistics of the Splinter Rock project. Located approximately 800km from Perth, the cost of transporting bulk liquid chemicals would significantly impact operating expenses. By producing these reagents onsite using abundant Western Australian solar sea salt, OD6 can dramatically reduce both costs and environmental impact.

Near-Term Catalysts and Development Pathway

OD6 has outlined several near-term activities that will advance the Splinter Rock project:

• Optioneering Study Completion – CPC Engineering and ANSTO are evaluating multiple technically viable flowsheets to identify the optimal development pathway
• Testwork Drill Campaign – Set to commence in September, providing 1.5-2.5 tonnes of REE bearing material for expanded testwork
• ANSTO Testwork Scale Up – Testing approximately 1 tonne of material to validate current findings and produce ~1kg of MREC for offtake discussions
• Offtake Partner Engagement – Discussions with potential customers to assess commercial payability options
• Financing Discussions – Ongoing engagement with government and potential financing partners

Why Investors Should Follow OD6 Metals

OD6 Metals presents a compelling investment case for several key reasons:

1. World-Class Resource Base – Splinter Rock hosts one of Australia's largest and highest-grade clay-hosted rare earth deposits with an Indicated Resource of 119Mt @ 1,632ppm TREO and an Inferred Resource of 563Mt @ 1,275ppm TREO

2. High-Value Rare Earth Mix – Approximately 23% high-value Magnetic Rare Earths in the overall resource, targeting elements critical to permanent magnet production

3. Cost-Effective Processing Solution – The OD6 Metals chlor-alkali breakthrough represents a strategic advancement that promises to significantly reduce operating costs

4. Technical De-risking – Successful demonstration of key processing steps in partnership with ANSTO, Australia's premier nuclear science and technology organisation

5. Clear Development Pathway – Systematic approach to project advancement with active testwork, engineering studies, and stakeholder engagement

6. Value Chain Opportunities – Potential to produce higher-value individual rare earth oxides through chloride-based separation

7. Diversified Portfolio – Additional upside through the high-grade copper discovery at Gulf Creek, featuring high-grade historical production and multiple untested exploration targets

The recent confirmation of the Chlor-Alkali Facility's viability marks an important milestone in OD6's journey to develop Splinter Rock into a significant producer of critical rare earth elements. With continued progress on metallurgical optimisation and strategic partnerships, OD6 is positioning itself as an emerging player in the global rare earths supply chain, particularly as high-grade gold discoveries continue to expand potential across the resource sector.

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