Announcement PDF Australian Critical Rare Earth Minerals Mineral Sands and Rare Earths Conference 19 and 20 March 2024 ASX I OD6 Important Information Disclaimer Forward Looking Statements This presentation has been prepared by OD6 Metals Ltd (ACN 654 839 602) (OD6) and is current as at the date of this document. The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. The presentation has been prepared without considering the investment objectives, financial situation or needs of any particular person. Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate considering your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance. Any securities that may be issued by OD6 should be considered speculative and there is no guarantee implied or explicit that there will be a return on the capital invested or that any dividend will be paid or that there will be an increase in the price or value of OD6’s shares in the future. Certain statements contained in this presentation, including information as to the future financial or operating performance of OD6 and its projects, are forward looking statements. Such forward looking statements: No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of OD6, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault of negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness or any forecasts, prospects or returns contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. No New Information The information in this report relating to the Mineral Resource estimate for the Splinter Rock Project is extracted from the Company’s ASX announcement dated 17 July 2023. OD6 confirms that it is not aware of any new information or data that materially affects the information included in the original announcement and that all material assumptions and technical parameters underpinning the Mineral Resource estimate continue to apply. This document contains information extracted from ASX market announcements reported in accordance with the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (2012 JORC Code) and available for viewing at https://www.od6metals.com.au/investors/asx-announcements/. OD6 confirms that it is not aware of any new information or data that materially affects the information included in any original ASX market announcement. • may include, among other things, statements regarding incomplete and uncertain proposals or targets, production and prices, operating costs and results, capital expenditures, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions; • are necessarily based upon several estimates and assumptions that, while considered reasonable by OD6, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; and • involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forwardlooking statements. OD6 disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words “believe”, “expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward looking statements. All forward looking statements made in this presentation are qualified by the foregoing cautionary statements. Recipients are cautioned that forward looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty therein. No representation is made that, in relation to the tenements the subject of this presentation, OD6 has now or will at any time in the future develop further resources or reserves within the meaning of the Australian Code for Reporting of Exploration Results, Mineral resources and Ore Reserves (The JORC Code). 2 Globally significant clay-hosted rare earth discovery 100%-owned project areas in one of the world’s great mining jurisdictions Splinter Rock Maiden Inferred Mineral Resource Estimate1 • 344Mt at 1,308 ppm TREO (at a 1,000ppm cut-off grade) for ~450 kt contained TREO • MagREO represents an average of ~23% of TREO grade for ~103 kt contained MagREO • Project situated in a first-class location, close to port, roads and essential infrastructure 1. Refer to ASX announcement 18 July 2023, “Splinter Rock Maiden Mineral Resource”, OD6 confirms that confirms that it is not aware of any new information or data that materially affects the information included in that release. All material assumptions and technical parameters underpinning the release continues to apply and has not materially changed. TREO (Total Rare Earth Oxide) = La2O3 + CeO2 + Pr6O11 + Nd2O3 + Sm2O3 + Eu2O3 + Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 + Y2O3 MagREO (Magnet Rare Earth Oxide) = Nd2O3 + Pr6O11 + Tb4O7 + Dy2O3 % Magnet REO = (MagREO / TREO)*100 3 Investment highlights 1 Targeting critical, high-value magnet rare earth elements Consumption expected to triple by 2035 with +10-20 new mines required to meet demand 2 Tier 1 jurisdiction with access to significant infrastructure and known tenure pathway 3 The premier Australian clay-hosted rare earth deposit 4 Strong metallurgical results 5 6 Prime location for future development Largest and highest grade in Australia at 344Mt @ 1,308 TREO, with substantial further upside Simple leach process with high recoveries of valuable MagREE – comparable or better with industry leading peers A disciplined strategic approach to maximising value In pursuit of the “best of the best” as input to a future Scoping Study Sustainably creating value Acting with integrity to responsibility deliver rare earth resources for a low carbon future 4 Corporate snapshot High calibre leadership team and tight capital structure Capital Structure ASX: OD6 Price per share1 A$0.086 Total number of shares on issue2 102.45M Performance rights and options2 37.55M Market capitalisation (undiluted)1 A$8.81M Cash2 A$2.09M Debt2 Nil Enterprise value1 A$6.72M Share Price History A$/share Dr Darren Holden Mr Brett Hazelden Mr Piers Lewis Dr Mitch Loan NON-EXECUTIVE CHAIR MANAGING DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Register Detail 0.50 0.40 0.30 0.20 Founders (exc. Directors and Management) 40% 42% Institutions 0.10 0.00 Mar 23 May 23 Jul 23 Sep 23 Nov 23 Jan 24 Directors and Management 5% 13% Retail / Other Mar 24 1. As at 15 March 2024 2. As at 31 December 2023. Refer to ASX announcement “Quarterly Activities and Cashflow Report” Note: 47,435,249 shares (46%) escrowed until 22 June 2024 5 Rapid exploration and project advancement Systematically adding value 1. Drilling commences at Splinter Rock 2. Immediate outstanding drilling success 4. Phase 2 drilling completed at Splinter Rock 6. Very high metallurgical recoveries 9. Low acid consumption confirmed 11. Screening further lowers acid consumption Initial 179-hole AC program for 5,862m of drilling Results from first 65-hole returns grades up to 6,729ppm TREO average 22.3% MagREO Total 83 holes drilled for 4,305m at average depth of 50m and max depth 100m Up to 96% of MagREO acid leach recoveries. Average 60 to 75% Average 16 kg HCl/t ore with multiple zones at 6-10 kg HCl/t ore ANSTO test results showed an average 35% reduction in HCl consumption 1 2 4 6 Q3 22 Q4 22 Q1 23 Q2 23 3 5 7 3. Airborne Electromagnetic Survey complete​ 5. High-grade REEs identified at Grass Patch 7. Bumper REE grades at Splinter Rock Vast scale of target ​areas identified with over 250km2 clay basins mapped Grades up to 3,340ppm TREO, with up to 38.5% MagREO 74 out of 83 holes returned significant high grade TREO results 9 11 Q3 23 Q4 23 Q1 24 8 10 12 Q2 24 8. Maiden 10. Standout REE 12. Excellent Mineral Resource grades at Centre bottle roll results Estimate Prospect achieved 344Mt @ 1,308 ppm TREO Inferred Resource at a 1,000ppm cut off grade Refer to OD6 ASX Announcements https://www.od6metals.com.au/investors/asx-announcements/ Grades of up to 6,441 ppm TREO returned with 77 holes >1,000ppm TREO Up to 90% with an average 62% MagREE returned at Splinter Rock Targeting increase and upgrade to MRE Q2 2024 Q3 24 Centre and Prop drilling results expected Q3 2024 6 1. Critical magnet rare earth elements Four critical, high value metals hydrogen helium 1 2 H He lithium beryllium boron carbon nitrogen oxygen fluorine neon 3 4 5 6 7 8 9 10 B C aluminium silicon phosphorus sulfur chlorine argon 13 14 15 16 17 18 Al Si P S Cl Ar Li Be sodium magnesium 11 12 Light rare earth elements Heavy rare earth elements Na Mg Light rare earth elements 59 Heavy rare earth elements 60 66 65 Pr Nd Dy Tb Praseodymium Neodymium Dysprosium Terbium • Electric vehicles • Electric vehicles • Electric vehicles • Xray's • Wind turbines • Wind turbines • Wind turbines • High temp fuel cells • Semiconductors • Nuclear reactors • Electric vehicles • Semiconductors • Wind turbines • Semiconductors N O F Ne potassium calcium scandium titanium vanadium chromium manganese iron cobalt nickel copper zinc gallium germanium arsenic selenium bromine krypton 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 K Ca Sc Ti V Cr Mn Fe Co Ni Cu Zn Ga Ge As Se Br Kr rubidium strontium yttrium zirconium niobium molybdenum technetium ruthenium rhodium palladium silver cadmium indium tin antimony tellerium iodine xenon 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Rb Sr Y Zr Nb Mo Tc Ru Rh Pd Ag Cd In Sn Sb Te I Xe cesium barium hafnium tantalum tungsten rhenium osmium iridium platinum gold mercury thallium lead bismuth polonium astatine radon 55 56 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 Cs Ba Hf Ta W Re Os Ir Pt Au Hg Tl Pb Bi Po At Rn francium radium rutherfordium dubnium seaborgium bohrium hassium meiterium darmstadtium roentgenium copernicium nihonium flerovium moscovium livermorium tennessine oganesson 87 88 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 Fr Ra Rf Db Sg Bh Hs Mt Ds Rg Cn Nh Fl Mc Lv Ts Og lanthanum cerium praseodymium neodymium promethium samarium europium gadolinium terbium dysprosium holmium erbium thulium ytterbium lutetium 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 La Ce Pr Nd Pm Sm Eu Gd Tb Dy Ho Er Tm Yb Lu actinium thorium protactinium uranium neptunium plutonium americium curium berkelium californium einsteinium fermium mendelevium nobelium lawrencium 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 Ac Th Pa U Np Pu Am Cm Bk Cf Es Fm Md No Lr 7 1. Significant future global demand expected Consumption expected to triple by 2035 with multiple new mines required to meet demand NdPr Production and Demand (real) (tonnes p.a.) Demand growth anticipated to accelerate between 2025 and 2035 Transition from carbon to renewable economy driving demand for critical magnet rare earth elements, with 7.1% CAGR expected Demand underpinned by growth from electric vehicles, wind power and consumer electronics NdPr market growth projections require supply levels to grow by approximately 80% by 2035 to meet forecast demand – this is equivalent to +10-20 new mines Eg ARU = ~3,700tpa NdPr Source: Project Blue Energy transition outlook to 2050, November 2023, Lynas (ASX: LYC), Adamas and Company Presentations 8 1. New Australian supply urgently needed Mine concentration is a significant risk to the global supply chain 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 governments and corporations with Australia well placed to provide additional capacity Myanmar Supply risk could see price increase 38,000 30,000 17,000 100 500 1,000 1,000 2,000 2,700 3,000 8,000 Source: USGS Mineral Commodity Summaries, Rare Earths pubs.usgs.gov/periodicals/mcs2023/mcs2023.pdf Benchmark Minerals “ Rare earth supply strong in 2024 but Myanmar risk remains” 9 2. Prime location for future development Existing infrastructure a key differentiating factor Established Esperance township • • Proximate to large coastal town Esperance. Local workforce potential for any future development Serviced by existing road network • Established, well maintained road network connecting Splinter Rock and Grass Patch to town and port Ready access to Esperance bulk port • • • Esperance Port handles over 200 ships p.a. Cape size vessel capacity Regular container ships link to the export market Local renewable power connected • • Proven renewable cap Esperance has Dual 4.5 MW wind turbines plus 4 MW solar farm and gas turbines 10 3. The premier Australian clay-hosted REE project Inferred Resource of 344Mt @ 1,308ppm TREO with substantial upside from high-grade Inside Centre discovery Rare earth element deposits Enterprise value (A$M) (bubble size reflects contained TREO) 3000 518 2000 386 1500 1000 500 WC1 China Longnan AR3 ABX MEK OD6 BRE HRE VTM IXR China Xinfeng Tantalus China Xunwu Serra Verde 63 0 0 100 200 300 400 500 600 700 Resource Tonnage (Mt) Refer to ‘Peer calculation and reference details’ Source: Adapted from Euroz Hartleys Research Report, Company Reports, Phillip Hellman, Sharemarket Market Capitalisation 800 900 1000 High valuation rerate potential based on TREO grade and potential Mineral Resource tonnage expansion 43 20 11 7 7 3 3 1 BRE MEI VMM MEK VTM ABX OD6 AR3 WC1 KTA HRE TREO Grade (ppm) MEI Aclara 2500 Targeting Mineral Resource expansion based on recent phase three drilling results 11 3. Exceptional Phase 3 drilling success Real and substantial upside potential in updated Mineral Resource estimate due in Q2 2024 Significant results at Centre and Inside Centre prospects1 • 58 metres at 2,060ppm TREO (21.8% MREO) from 21 metres (SRAC0356) • 77 metres at 1,429ppm TREO (22.5% MREO) from 18 metres (SRAC0357) • 69 metres at 1,457ppm TREO (25.6% MREO) from 15 metres (SRAC0358) • 66 metres at 1,519ppm TREO (21.0% MREO) from 21 metres (SRAC0359) • 52 metres at 1,467ppm TREO (29.6% MREO) from 21 metres (SRAC0333) • 42 metres at 1,609ppm TREO (21.4% MREO) from 18 metres (SRAC0470) • 41 metres at 1,611ppm TREO (26.4% MREO) from 6 metres (SRAC0298) • 43 metres at 1,425ppm TREO (23.4% MREO) from 12 metres (SRAC0300) • 24 metres at 2,379ppm TREO (25.5% MREO) from 18 metres (SRAC0303) • 30 metres at 1,806ppm TREO (27.5% MREO) from 42 metres (SRAC0321) • 34 meters at 1,465ppm TREO (23.2% MREO) from 36 metres (SRAC0469) • 43 meters at 1,425ppm TREO (21.8% MREO) from 12 metres (SRAC0300) • 31 meters at 1,339ppm TREO (22.6% MREO) from 21 metres (SRAC0328) • 30 meters at 1,309ppm TREO (22.5% MREO) from 21 metres (SRAC0351) • 24 meters at 1,810ppm TREO (21.5% MREO) from 48 metres (SRAC0340) • 21 meters at 1,672ppm TREO (24.0% MREO) from 15 metres (SRAC0297) Inside Centre – Thick, high-grade mineralisation Inside Centre is a new 2km x 1km discovery that is up to 69m thick, with grades of 1,400ppm to 2,200ppm TREO and has the potential to be a standout first stage project 12 3. What does an economic project look like? Splinter Rocks meets all the ‘Key Value Drivers’ and has the hallmarks of a highly economic project Key Value Drivers Clay volume treated (tpa) TREO (ppm) Metallurgical TREO MagREO produced % recovery produced (tpa) @23% (tpa) payable AUD:USD Revenue p.a. @ US$50/kg TREO ✓ Grade >1,000 ppm TREO ✓ MagREO content >20% ✓ Treatment rate > 4 Mtpa ✓ Mine life >20 years ✓ Resource size >150 Mt ✓ Recovery >50% ✓ Low stripping ratio ✓ Low reagent usage / cost ✓ Low power costs 10,000,000 1,500 60% 9,000 2,070 70% 0.65 A$484M 7,500,000 1,500 60% 6,750 1,553 70% 0.65 A$363M 5,000,000 1,500 60% 4,500 1,035 70% 0.65 A$242M 5,000,000 1,000 60% 3,000 690 70% 0.65 A$161M 5,000,000 800 60% 2,400 552 70% 0.65 A$129M 4,000,000 800 60% 1,920 442 70% 0.65 A$103M 3,000,000 800 60% 1,440 331 70% 0.65 A$ 77M 2,000,000 800 60% 960 221 70% 0.65 A$ 51M 1,000,000 800 60% 480 110 70% 0.65 A$ 25M This is conceptual in nature, but is used as a basis for the 1,000ppm resource cut-off and the “reasonable prospects of eventual economic extraction” under JORC 13 4. Already strong metallurgical results Identifying the best metallurgical areas to further refine potential processing route • Very high metallurgical recoveries achieved using simple acid leach • Average 62% MagREO recovery (range 43% to 87%) at 20g/l HCl • Average 16 kg HCl/t ore with multiple zones at 6kg to 10kg HCl/t ore Centre Prospect Scrum Prospect 40% to 90% recoveries (average 60%) 40% to 89% recoveries (average 65%) • Extractions at 15g/L to 20 g/L HCl appear to be a balance point on recovery, acid strength and acid consumption. • Neodymium (Nd), Praseodymium (Pr), Terbium (Tb) and Dysprosium (Dy) have very similar recoveries • Screening of coarse-grained material expected to reduce leach material by 30-50% without appreciable loss of MagREO • Recent recovery trials to identify “best of the best” areas Recoveries only reflect initial rare earth leaching, with further losses expected in precipitation, impurity removal, purification and drying. Prop Prospect 44% to 96% recoveries (average 71%) Flanker Prospect 41% to 96% recoveries (average 53%) 14 4. Magnet rare earth recovery OD6 has closed the gap to its industry leading peers on MagREE recoveries OD6 Metals (~A$7M EV) Refer to ‘Peer calculation and reference details’ ’, and OD6 ASX Announcement 27-2-2024 Note: OD6 recoveries represent results from the Centre prospect Meteoric Resources (~A$392M EV) 15 4. Clay-hosted rare earths Similar to IAC, clay-hosted REEs present a highly attractive processing option in a tier-1 jurisdiction Clay-hosted REE • Esperance, Western Australia – Tier-1 mining jurisdiction with access to significant infrastructure Locations ✓ Exploration ✓ • Quick and low-cost exploration: shallow air core drilling Mining ✓ • Pits backfilled and rehabilitated Processing ✓ • Surface mining, within minimal strip ratio • • • • Chloro-Alakli plant makes both acid and base onsite Simple 6 hour leach in hydrochloric acid ($250/t)1 Requires more tanks for leaching process Sodium hydroxide to neutralise solution ($250/t) Recoveries ✓ • Up to 90% (62% average) Payability ✓ • High recoveries containing valuable light and heavy rare earths (Nd, Pr, Dy, Tb) Ionic Clay-hosted (IAC) REE ✓ • South America, Brazil ✓ • Quick and low-cost exploration: shallow air core drilling ✓ • • Surface mining, within minimal strip ratio Pits backfilled and rehabilitated • • • Ionic process needs multiple offsite produced reagents Simple 0.5 hour leach in ammonium sulphate ($350/t)1 and sulphuric acid ($300/t)1 Ammonium bicarbonate to neutralise solution ($350/t)1 ✓ • Up to 95%2 (46.2% average)3 ✓ • High recoveries containing valuable light and heavy rare earths (Nd, Pr, Dy, Tb) ✓ Refer to ‘Peer metallurgy results reference details Note: (1) All figures are estimated/verbal current supplier pricing, (2) MEI MagREE recoveries at Calderia, (3) Average MagREE recoveires across MEI, VMM and Alcara 16 5. A disciplined strategic approach In pursuit of the “best of the best” for maximum value creation Explore • • • • • Identify high-grade, ‘sweet-spot’ REE zones Aggressively grow Mineral Resources via latent scale potential Target thick areas with low strip ratio potential Low-cost exploration, high value for money CSIRO collaboration Advance Design • • • • Optimise leach recovery and impurity removal Remove coarse grain material to reduce acid consumption Produce a MREC with potential conversion to REO Refine process with ANSTO • • • • • Pursue “Best of the Best” grade, recovery, stripping ratio and acid consumption Integrate ChlorAlkali Benefits Renewable energy sourcing – solar / wind Existing Infrastructure – port, road Deliver Scoping Study 17 5. Growth and infill drilling scheduled through 2024 Targeted drilling focused on building and refining sizeable Mineral Resource base Centre and Prop Prospects Infill drilling at Centre and Prop for potential Mineral Resource estimate upgrade Centre, Flanker and Scrum Prospects Extensional drilling at Centre, Flanker and Scrum for Mineral Resource estimate growth Loosehead and Tighthead Prospects Regional drilling at Loosehead and Tighthead for new discovery potential 18 5. Scheduled program of activities Rapidly advancing and de-risking 2024 MRE upgrade Q1 Q2 Q3 High grade initial MRE at Inside Centre Infill drilling Drilling at Centre and Prop Extensional drilling Drilling at Centre, Flanker and Scrum Regional exploration Met optimisation Scoping Study Q4 Drilling at Loosehead and Tighthead Refine process with ANSTO MREC Deliver Scoping Study 19 6. Sustainably creating value Acting with integrity to responsibly deliver rare earth resources for a low carbon future Our sustainability priorities: ESG Workplace health and saftey and mental health Our aim is to minimize our environmental impact, look after our people and grow with our communities to create value for our investors Aboriginal and Traditional Owner engagement Integrity and ethical business practices RISK Regulatory compliance and change Focused on protecting local flora and fauna Corporate governance and risk management 20 6. The Splinter Rock Project A world-class clay-hosted REE asset progressively being de-risked W.A. Located in Western Australia, a tier 1 jurisdiction $$ No farming activities on MRE area P Strong community engagement and support for mining Clean, simple capital structure Regional renewable energy integrated into grid P First pass environmental reconnaissance surveys complete $ P P No private royalties payable Heritage surveys clear to date No commodity restrictions on tenement areas 21 Significant relative value upside potential Significant upside potential compared to peers Comparison of enterprise value per MagREO tonne Key catalysts for relative value uplift relative to peers on per tonne MagREO basis (A$/tonne MagREO) Strong foundation for growth potential and leverage to increase in rare earth prices 3,490 • Targeting Mineral Resource Estimate upgrade and expansion in Q2 2024 • Inside Centre Prospect has potential to be a standout first stage project 1,496 988 965 • Further regional exploration scheduled with success to expand resource base 727 345 BRE MEI ABX IXR VTM AR3 66 58 26 OD6 WC1 HRE • Metallurgical optimisation ongoing with high recoveries and low acid consumption de-risking project flow-sheet and future economics • Scoping Study targeted by end of 2024 Refer to ‘Peer calculation and reference details’ 22 Appendix ASX I OD6 Airborne Electromagnetic (AEM) Success State of the art AEM Modelling by CSIRO Salt water • AEM has facilitated mapping of clay locations, expanse and potential thickness • 400km2 of clay basins mapped • Clays are conductive, and are readily mapped with AEM (yellow to red colours). A Salt water • Granites are not conductive (blues to green) • 210 out of 228 holes (~92%) returned significant high grade TREO results from last two drill programs B Salt water • Sydney Harbour is 55 km2 (1) (1) Source: Sydney Harbour Our greatest Asset August 2019 Refer to ASX announcement 15 December 2022, “AEM shows Vast Scale of Target Areas” 24 Conceptual Geological Formation Collaborating with CSIRO to model the clay basins Low High 25 Indicative processing steps Simplified process map to deliver rare earth products MREC/H Mixed Rare Earth Excavate Transport Screen Acid leach Purify Precipitate Mine near surface clays Clays to processing plant Coarse material removal Rare Earths leached into solution Removal of impurities eg Al, Fe, U, Th Rare Earth carbonate precipitation HCl acid HCl acid Salt Renewable power Water No drill and No crushing blast No flotation No milling Solvent extraction and separation NaOH base P No drill & blast NoNo milling crushing RE Separation NaOH base Chlor-alkali process HCl NaOH Na2CO3 or NaOH NaOH base H2O NaCl Mixed RE Carbonate or Hydroxide product flotation NoNo high temperature No high temperature cracking cracking Recycle saline water Rehabilitate Transport Clay Washing Site revegetated Clays returned to mine void Clay washing, neutralisation and filtration Clay Rare Earths Water Reagents REOs Oxides Individual Rare Earth oxides Nd Pr Dy Tb No high No high pressure leach pressure leach No high No high temperature temperature leach leach 26 Acid consumption and reagent costs Important to consider total reagent requirements, not just one step in the process • Vendor discussions confirm viability of potential site-based chlor-alkali facility • Indicative pricing for a chlor-alkali electrolyser is approximately £3M each (A$5.7M) • Chlor-alkali plant also provides a sodium hydroxide (NaOH) co-product which is utilised in impurity removal and precipitation of a final Mixed Rare Earth Product (MREC/H) • A single chlor-alkali electrolyser has the potential to produce 62ktpa HCl and 69ktpa of NaOH which, at an average consumption of 16 kg HCl / tonne of ore, is sufficient to treat ~4Mtpa of REE bearing clay 2H2O (l) + 2NaCl (aq) ----> H2 (g) + Cl2 (g) + 2NaOH (aq) H2 (g) + Cl2 (g) -----> 2HCl (g) Refer to publicly available information associated with a BICHLOR Electrolyser, 27 Clay-hosted REE projects – what’s the difference? Processing steps are similar, mainly using different reagents and time Aclara and Meteoric Proposed Flowsheet OD6 Proposed Flowsheet No drill & blast No crushing No milling No flotation Key points to note • • • • • • OD6 Longer leach times = more tanks Both process use acid to lower the pH to 1 and 3 to 4 Both process need to neutralise the acid to remove impurities and produce a MREC/H Lower pHs have more impurities to remove Chloro-Alakli plant makes both acid and base onsite Ionic process needs multiple offsite produced reagents • • • • No high temperature Reagents and estimated costs cracking Hydrochloric Acid + Sodium Hydroxide No high $250/t HCl1 + $250/t NaOH (Chlor-alkali onsite) pressure leach Ammonium Sulphate + Sulphuric Acid + Ammonium Bicarbonate: $350/t (NH4)2SO4 + $300/t H2SO4No + high $350/t (NH4)HCO3 2 temperature Consumption Rates are Key to Total Reagent Cost leach All projects will need Flocculants, Potable Water, other chemicals Note: (1) Assuming renewable power, capital paid upfront, (2) All figures are estimated/verbal current supplier pricing ex-works 28 Metallurgical test program moving forward Working with ANSTO to methodically optimise the process • 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 to assess and determine preferred slurry densities and further optimise leach conditions • Slurry leach tests to assess slurry handling, filtration and washing • Impurity removal trials at various pH conditions, temperatures and reagents • Assess potential use of Resins in pulp and liquid to assist in impurity removal • Assess Ion Exchange on “leach” liquor and selective elution of REE versus impurities eg Al,Fe • Assess Nanofiltration to produce a retentate with increased REE concentration, and a permeate consisting of “clean” acid for recycle • Mixed rare earth precipitation of carbonates and hydroxides • Process modelling and techno-economic comparison of overall flowsheet options • Mini pilot scale testing of composited bulk samples • Apply process model to assess various options to convert the mixed rare earth carbonate/hydroxide in a downstream refinery to multiple potential rare earth oxides 29 Splinter Rock Mineral Resource estimate At 1,000 ppm cutoff grade Prospect Category Australia’s highest grade and largest clay hosted MRE Delineated from less than 5% of identified target area Tonnes (Mt) TREO (ppm) Pr6O11 (ppm) Nd2O3 (ppm) Tb4O7 (ppm) Dy2O3 (ppm) MagREO MagREO (ppm) (% of TREO) Centre Inferred 149 1,423 71.2 2