OD6 confirms high-grade critical mineral fluorspar from US project

Our US critical minerals Investment OD6 Metals (ASX: OD6) just announced channel sampling results from its fluorspar Project in Nevada.

OD6’s project has produced fluorspar in the past, mostly by mining the outcrop on the project.

OD6 actually produced fluorspar from a small scale mining operation in the 1950s - it produced ~26,000 tonnes of material at an estimated grade of 44.9% Fluorite. (source)

And today, OD6’s channel sampling (which is basically sampling across the same outcrop) is showing us there is still a lot of untouched material on OD6’s project - at similar grades too:

(The channel sampling returned a 12m at 40.8% fluorspar result)

(source)

Despite all of that production history AND the outcropping structures, OD6’s project has actually never been drilled.

OD6 is currently in the permitting phase for its first drill program.

What we do know is that OD6 has fluorspar occurrences across a ~8km trend:

(source)

What we don’t know is how far those structures extend into the ground - so we will need to see some drilling before we start to get an idea of how big OD6’s project might be:

How do the grades at OD6’s project compare to other fluorspar projects?

A key takeaway for us from today’s announcement was the consistency in grades across the outcrop.

That’s the key difference between a simple rock chip sample and a broader channel sample which shows grades over a bigger area (in this case over 12m).

The positive from this is that we can start to extrapolate those grades across the bigger structures.

AND if drilling confirms those grades across thick intercepts OD6’s project could start to look like “one of the higher-grade fluorspar deposits globally.” (source)

(source)

The reason we think drilling is important is because it will finally give the market results that can allow for comparisons to be made between OD6’s project and ASX fluorspar success story $737M Tivan (whose project is in WA).

Tivan’s project has a resource is 43.2mt at 8.3% Fluorspar. (source)

(in comparison to the 40.8% grades announced today and remembering that OD6’s project has historical production of ~26,000 tonnes of material at an estimated grade of 44.9% Fluorite) (source)

That’s production at grades that are ~7.5x Tivan’s resource.

Tivan is capped at $737M.

OD6 - with an asset in the US - is capped at $36.5M.

Now, Tivan is a lot more advanced relative to OD6 with a defined resource estimate and a major partner involved backing its project. Market cap differences reflect these vastly different stages of development.

The reason we think OD6 could be re-rated higher IF drilling comes in is because unlike Tivan, OD6’s project is INSIDE US borders.

And right now the US imports 100% of its fluorspar, China controls ~68% of global supply.

Fluorspar is also on the US Critical Minerals list - because it’s used in battery technologies, AI semiconductor chip etching, nuclear fuel processing, and defence applications. (source)

What’s next for OD6?

🔄 Additional assay results from fluorspar asset

OD6 has an exploration program planned with more rock chip/channel sampling as well as soil sampling and mapping to come.

So we should see a fair bit of newsflow (and results) from the program done back in Feb and the program OD6 is planning to run over the coming weeks.

🔄 Drill target development and permitting

Once the surface program is complete, OD6 will be ready to drill its project.

Two geologists are being deployed for detailed mapping and channel sampling of the Horseshoe and Mammoth deposits plus reconnaissance across the wider project area.

Here are the milestones we are tracking in the lead up to OD6’s first drill program:

• 🔄 Rock chips
• 🔄 Channel sampling
• 🔄 Soil sampling
• 🔲 Geophysics
• 🔲 Drill targets generated

🔄 Due diligence and option exercise

OD6 is still completing due diligence on Quinn as part of its exclusive option agreement.

We want to see this progress through to a completed acquisition.

Milestones:

• 🔄 Due diligence process completed
• 🔲 Option to acquire exercised
• 🔲 Acquisition completed