OD6 Metals Limited announced that drilling has commenced at its Grass Patch Project, which is considered prospective for clay hosted rare earth element (REE) mineralisation. The Grass Patch Project is a 2,248km2 tenement package located approximately 50 to 100km north of Esperance, Western Australia. The area has historical exploration undertaken focused on gold with no sampling conducted for REE in the saprolite zone (prospective for clay hosted REEs).

Accordingly, the Grass Patch Project is considered an early-stage exploration project prospective for REE as defined by soil geochemistry and water bore anomalies. The initial 95 hole AC drill program has been designed initially based on regional anomalies and water bore assays in the area that have shown the presence of elevated rare earth elements in the ground water. The program has been further refined utilising the recently completed Airborne Electromagnetic Survey (AEM) which has highlighted prospective clay basin areas, shown in yellow, red and pink in Figure 2 below.

Results from the program will provide an initial insight of where to focus future drilling programs based on grade, depth and thickness of mineralised areas. The Tempest Airborne Electromagnetic Survey was completed over the Grass Patch Projects to the north of Esperance during October and November 2022. The AEM survey aimed to identify and map clay location, expanse, depth and thickness across OD6's tenement areas utilising discovery and processing techniques evaluated in conjunction with the CSIRO.

The program consisted of 11,500 line km flown between 400m and 800m line-spacing in a west to east direction at Grass Patch. Collected data will be analysed and used to map sub-surface electrical conductivity of rocks and soils. Higher electrical conductivity can indicate rock layers that are clay rich, hold salt water or contain sulphide mineralisation.

Low electrical conductivity can indicate zones of non-conductive rock (e.g. granite), sand or fresh water. On OD6 tenements, this technique is used to map conductive clay horizons. To date, the Company has received preliminary conductivity images from the contractor.

Preliminary results outlined in this announcement pertain to the Grass Patch Project area with further data processing, analysis and modelling to occur during the first quarter of 2023. Completion of the Air Core drilling program is currently scheduled for early February 2023. Subject to laboratory processing times, assays are expected to be received in first quarter of 2023.

Southern Geoscience Consultants have been contracted to process the final AEM data and conduct 3D modelling to assess for depth from surface to top of clays and clay thickness. Full analysis of the AEM data will be completed during first quarter of 2023.