OD6 Metals (ASX: OD6)

NRX has acquired a high-grade fluorspar Quinn project in Nevada which has an 8km fertile mineralised corridor and over 20 significant fluorspar occurrences in what could be a gigantic epithermal system. There are 4 key prospects at Quinn – the Horseshoe prospect has historic intercepts such as 14.3m at 70.9% CaF2 from surface including 1.5m at 84% CaF2, along with 26,000t of prior production. It recently recorded channel samples of 50m at 63.9% CaF₂ with peak values up to 82% CaF₂, and is connected by a 1.5km long high-intensity alteration zone to Big Jim, which has 230m of historical workings that are open to the north and south, with prolific mineralisation throughout including a massive vein with grades above 98% CaF₂. Mammoth adds a broad 9,000m² mineralised footprint with channel results including 15.2m at 48% CaF₂, while Blue Bell returned 86.7% CaF₂ from its main vein and produced the clearest preliminary ore-sorting response.

Despite fluorspar being essential for semiconductor manufacturing, lithium-ion battery production, uranium enrichment and a litany of defence applications. The US is 100% net import reliant on it, and 94% of global production is concentrated amongst China, Mongolia, Mexico and South Africa. Fluorspar mining in China is highly fragmented, with 683 mines across the country, 450 of which produce between 10-50ktpa – while the US still has none.

A key peer comparison is ARS, which currently has an EV of C$132 million after attaining over C$34 million in state and federal loans and a US$250 million Department of War supply agreement to start mining its Utah fluorspar resource. It is pre-resource and pre-feasibility study, but is a historically producing asset that has relatively solid metallurgical testwork and will supply around 13% of the USA’s demand – leaving a gigantic gap that OD6 is perfectly suited to fill. ARS has begun the process of ramping up to a 50ktpa production rate, and OD6 could at the very least consider a near term 20ktpa metspar operation that would add acidspar into the mix not long after.

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