OD6 expands its Nevada fluorspar project to 226 claims with four new project areas added

Our US critical minerals Investment OD6 Metals (ASX: OD6) just expanded its fluorspar project in Nevada.

OD6 staked four entirely new project areas, lifting the total landholding from 48 to 226 mining claims across ~1,890 hectares and seven project areas.

(source)

All four of the new project areas each come with fluorspar occurrences ~12km to the south and ~7km east o& south of OD6’s existing ground:

And OD6 has crews on site running a sampling program with results expected in 4-6 weeks.

(source)

OD6 is now calling its project a "district play" where several deposits could one day feed a single central processing facility at Quinn.

So technically, there doesn’t need to be a single giant resource, instead there can be many smaller ones that can be processed through the same central processing plant.

Outlining a clear vision could make it easier to seek government funding opportunities, like the funding support that small cap ARES mining received (up to US$250M from the Pentagon).

(source)

The only reason Ares received that funding was because it's the only fully-permitted, ready-to-restart fluorspar mine in the United States.

Ares' project in Utah is currently designated as the sole domestic supplier of acid-grade fluorspar to the US government. (source)

The interesting part is the way the contract is structured. The Department of War orders the product as Ares delivers it.

No acidspar produced = no payment.

We think that now OD6 with its metwork results and historical drilling data has enough data already to put itself in the conversation as an alternative domestic supplier of fluorspar…

AND the dream scenario for us as OD6 investors would be the Department of War issuing a similar contract to OD6.

It’s hard to see the DoW put all its eggs in one basket (which is one small Canadian listed company) for the supply of a critical mineral that it is 100% reliant on imports for.

In an announcement last month, OD6’s Managing Director commented on US engagement confirming that OD6 had enough data that “could enable application to the White House for FAST-41 status” on its project:

(source)

FAST-41 is a special accelerated USA permitting and development framework for projects considered “critical” and essential for US national security. (more on Fast-41 status here).

OD6 has recently shown its fluorspar contains low impurities from the initial multi element results from last week, we covered this in a Quick take here: OD6 produces low impurity fluorspar from project in Nevada, USA.

And in our most recent Deep Dive article we go through what fluorspar is and used for plus how we think this project could be developed in the nearer term should the project show some scale: OD6: Pulls out “exceptional high grade fluorspar mineralisation from surface” card

(We also go through our theory that each of the outcrops are joined or at least linked under the surface, if this is true then OD6 could have a significant amount of fluorspar)

What we want to see next from OD6

🔄 Target generation for US fluorspar project

We want to see OD6 samples 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
• ✅ Metallurgical testwork showing OD6’s material can be processed to acid-spar grades.
• 🔄 NEW: 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

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