OD6 Metals Ltd (ASX:OD6) is a successful applicant for round 29 of the Western Australian Government’s Exploration Incentive Scheme (EIS) co-funded drilling program and will receive $180,000 for drilling at the flagship Splinter Rock clay-hosted rare earth project.
The company has been offered the maximum amount under the co-funded drilling program and will use it for drilling the Tighthead and Loosehead prospects at Splinter Rock, northeast of Esperance in Western Australia.
This amount is subject to signing the funding agreement and the completion of drilling.
Competitive grant process
Managing director Brett Hazelden said: “OD6 is delighted to again have been selected as a successful applicant in the competitive grant process for innovative exploration drilling projects under the latest round of the Exploration Incentive Scheme (EIS) Co-funded Drilling Program.
"We recognise the Western Australian Government’s support for the exploration industry and in particular the efforts of the many exploration and development companies also awarded a grant that are focused on the emerging critical minerals industry.
"The critical minerals industry, which includes OD6’s focus on rare earths, is at an important incubation stage with the support of State and Federal governments being essential to make Australia a driving force in the future provision of these minerals to world.
"The Tighthead and Loosehead target areas are to the northeast of our main Splinter Rock discoveries and have been identified through our industry collaboration and research partnership with CSIRO.”
Drilling of rare earth targets
OD6’s proposed drilling program will target prospective rare earth target areas identified by Australia’s national science agency, CSIRO, through an applied machine-learning technology and advanced 3D modelling utilising Airborne Electromagnetic Survey data.
This program will look to confirm the clay-hosted REE deposit model plus determine the extent, quality and characteristics of the Tighthead and Loosehead targets.
About the EIS
The EIS is a State Government initiative that aims to encourage exploration in Western Australia for the long-term sustainability of the State’s resources sector.
This initiative started in April 2009 and in July 2019 the EIS was funded on an ongoing basis of $10 million per year using funds raised through Mining Tenement Rents. In July 2021 the annual allocation was raised to $12.5 million per year.
The main aim is to stimulate increased private sector resource exploration, leading to new mineral and energy discoveries.
New discoveries in these areas will increase knowledge of the State’s geology and resources, and help increase employment opportunities. Most of the activities in the EIS are focused on underexplored greenfields regions.
A flagship program of the EIS is the Co-funded Exploration Drilling Program. It is a competitive program, open for applications twice a year, which offers up to a 50% refund for innovative exploration drilling projects, capped at $180,000 for a multi-hole application.