Osmond Resources Confirms Orión Continuity Ahead of Scoping Study

Osmond Resources (ASX: OSM) has confirmed continuity of the main heavy mineral-rich seam across the Southern Block at its Orión EU critical minerals project in southern Spain, strengthening the geological basis for a maiden mineral resource estimate (MRE) and Scoping Study due this quarter.

Latest drilling returned a 1.2m interval from 312.7m grading 0.369% total rare earth oxides (TREO), 1.62% zirconium dioxide, and 5.38% titanium dioxide, including 0.6m at 0.512% TREO, 2.23% zirconium dioxide, and 6.43% titanium dioxide.

Osmond interprets the result as confirmation that the prospective Pochico Formation extends from the Avellanar Block into the Southern Block at depth.

Osmond expects the MRE within the next four weeks and has completed the flowsheet and recovery assumptions for a nominal 2.0 million tonnes per annum Scoping Study design.

Southern Block Strengthens

The hole intersected the prospective Pochico Formation at 231.6m and the main mineral-rich quartzite seam at 312.7m, extending evidence of east-west continuity across the Southern Block while also indicating the seam thins towards the west.

Osmond considers that thinning likely reflects the original basin architecture and/or increasing distance from the heavy mineral source area, with the drilling further supporting continuity of the prospective geology from the Avellanar Block.

Mass-balance estimates for the 1.2m interval indicate grades of 0.55% monazite, 2.4% zircon, 4.5% rutile, and 1.7% ilmenite, with detailed quantitative mineralogical studies continuing to confirm relative abundances.

Initial mine planning will focus on the thicker adjacent 2.7m to 3.0m main seam areas and the Avellanar Block as Osmond works towards the MRE and Scoping Study.

Processing Design Taking Shape

A petrographic study by the University of Oviedo compared six Zone 1 samples and concluded that outcrop and drill core material are essentially equivalent in mineral assemblage, textures, and grain-to-grain relationships, supporting the use of surface samples for current process development.

Recent Nagrom test work similarly found no significant difference in collective zircon and titanium mineral response between outcrop and drill core during gravity separation, while planned variability testing will define the broader operating envelope.

Wood Australia has developed a nominal 2.0Mtpa processing design from test work and SysCAD modelling to produce separate zircon, mixed titanium-mineral, and monazite-rich rare earth concentrate streams.

The design targets a zircon concentrate grading 64.1% zirconium dioxide at 63.6% net recovery, a mixed titanium-mineral concentrate grading 71.3% titanium dioxide at 36.1% net recovery, and a monazite-rich concentrate grading 22.6% TREO plus yttrium oxide at 60.4% net recovery.

Those product grades are extrapolated from test results and remain subject to confirmation through recently started pre-feasibility study (PFS) test work.

Next Development Phase

Bulk sample testing is underway at Nagrom in Perth as part of the PFS program, which will generate design data and product samples while supporting further optimisation of the processing flowsheet.

Planned work includes testing alternative comminution options, targeting higher-grade zircon and rare earth concentrate products, investigating separation of a near-pure rutile stream and completing lateral and within-seam variability testing.

Osmond has also commenced trading on the Frankfurt Stock Exchange under the symbol 4OG, providing an additional European trading venue while retaining its primary Australian listing and continuous disclosure framework.

The broader Orión project covers 232 square kilometres across 772 Spanish mining units, with the current high-grade Zone 1 target covering 11.47 sq km.