OD6 - 50m of fluorspar grading 63.9% from surface in Nevada, USA

Our US critical minerals Investment OD6 Metals (ASX: OD6) just announced its biggest channel sample to date at its project in Nevada, USA.

50m at 63.9% fluorspar from surface… from the pit walls where the project previously produced from.

(source)

There was also 9m @ 74.9% fluorspar so these aren't selective rock chips, but a representation of what is happening at and across the surface.

In fact, the average across all 118 channel samples taken was 64.4% fluorspar.

The interesting thing is that due to the terrain, the mineralisation pops out at the places you would expect it to… IF it was continuous.

(source)

So its starting to look like our "iceberg theory" is beginning to come to fruition where there are a few bits sticking out at surface, all appearing connected underneath:

(source)

Showing any sort of scale at these grades would change the story here pretty quickly, we think.

The US government is already funding domestic fluorspar a US$169M (up to US$250M) supply contract went to ~A$71M capped Ares Strategic Mining, the only permitted fluorspar mine in the US;

(source)

Plus OD6 has explicitly mentioned prior that saying OD6 could pursue fast-tracked permitting under a FAST-41 application for its project:

(source)

Grade matters because fluorspar is sold in two classes:

• Metspar (60–96% fluorspar) used in steelmaking, and
• Acidspar (>97% fluorspar) used in semiconductors, batteries and defence.

(source)

Today's channel sample being over 60% fluorspar is a good sign because it could underpin a potential Direct Shipping Ore (DSO) operation for OD6’s project.

Digging up material and selling it into the steelmaking market with minimal processing.

Check out our back of the napkin numbers on a potential DSO operating here.

OD6 also has data showing it could upgrade that material into 97.83% Acidspar - where prices are similar to the steelmaking market…(source)

BUT the strategic value of OD6’s asset increases because that's the type of fluorspar the US pentagon is looking for.

Remember that Pentagon deal where a US$250M contract was awarded to a smaller cap Canadian company Ares that we mentioned earlier, we think OD6 could be positioning itself similarly.

What's next for OD6?

🔄 Target generation for US fluorspar project

We want to see OD6 sample in and around the old workings on its project, run some geophysics and generate high priority drill targets ahead of its maiden drilling program.

Milestones:

• ✅ Rock chips
• ✅ Channel sampling
• ✅ Historic drill results
• 🔄 Digitisation of scanned paper maps and cross-sections into a 3D geological model
• ✅ Soil/channel sampling
• 🔲 Geophysics
• 🔲 Drill targets generated

Strategic / Government Engagement for fluorspar in the US

• 🔲 Engage with US Department of War, Department of Energy, or DLA regarding domestic fluorspar supply
• 🔲 Explore strategic partnerships or offtake discussions