Osmond Resources (ASX:OSM) said preliminary metallurgical testwork at its Orion EU critical minerals project in Spain achieved about 97.4% liberation of zircon, producing a concentrate grading about 50.2% zirconium dioxide with roughly 70% recovery, according to a Tuesday Australian bourse filing.

The company said scoping study testwork is targeting production of a premium-grade zircon concentrate grading at least 66% zirconium dioxide.

Initial flotation tests on the minus 38 micrometer monazite fraction achieved about 19.4% total rare earth oxides (TREO), excluding yttrium, with around 76% recovery from the WHIMS stream, representing about a 20-fold increase from the sample head grade, the filing added.

The company said improvements in monazite concentrate TREO grade and total mineral recovery are anticipated following inclusion of monazite from the plus 38 micrometer stream, with net monazite recoveries expected to be in line with global hard rock producers.

Preliminary results indicate the project is amenable to conventional heavy mineral processing flowsheets, Osmond said, adding that preliminary titanium mineral results are expected in the second quarter of calendar year 2026.

Large-scale continuous beneficiation testwork on a five-tonne bulk sample to support the next phase of development is about to commence, the filing added.

The company's shares were down 3% in recent Tuesday trade.