OD6 Metals Limited (ASX:OD6) has agreed to acquire additional mining claims at the historic Rainbow and Nyco fluorspar mines in Nevada, USA, for total consideration of US$89,166 in cash and 480,000 fully paid OD6 shares, further consolidating its position across the Quinn Fluorspar District.

Key Points

  • Acquisition adds 20 mining claims at the Rainbow and Nyco mines from Mithril Mining Corp, with no royalty or deferred consideration
  • Rock chip sampling at Rainbow returned grades of up to 89.6% CaF2 from a main shear vein, with altered country rock assaying up to 53.6% CaF2
  • Nyco Mine has recorded historic production of approximately 1,100 tonnes at 50% CaF2, with no modern exploration since historic mining ceased
  • Upon completion, OD6's expanded landholding will comprise 257 mining claims covering approximately 2,135 hectares across eight project areas
  • Completion is subject to customary conditions and is expected in the coming weeks

Rainbow Mine Acquisition and Exploration Results

OD6 has agreed to acquire four claims at the Rainbow Mine, located 16 kilometres WSW of its Horseshoe project, from Mithril Mining Corp. The Rainbow Mine sits on Bureau of Land Management land and has a production history dating to 1941, with approximately 200 tonnes of high-grade fluorspar shipped in 1945–1946. OD6 rock chip sampling conducted during due diligence returned 89.6% CaF2 from a one-metre wide shear vein, while altered volcanic country rock flanking the main structure returned 53.6% and 7.2% CaF2. Historic workings were confirmed during a field visit to extend over 850 metres of strike length, with the mineralised system described as untested at depth. Maiden exploration program planning is now underway.

Nyco Mine Details and Historic Production Records

OD6 has agreed to acquire 16 claims at the Nyco Mine, located 14 kilometres WSW of Horseshoe, also from Mithril Mining Corp. The Nyco No. 1–3 lode claims were located in October 1950, with main adit development commencing in 1951. Published records compiled by Papke (1979) estimate total recorded production of approximately 1,100 tonnes at 50% CaF2. Mine development comprises an adit nearly 122 metres long and a second adit 21 metres long, situated 43 metres lower. The filing states OD6 has not yet visited the Nyco site and no OD6 sampling results are presented for Nyco in this disclosure. The mineralised system is described as completely untested by modern exploration since historic mining ceased.

Acquisition Terms and Expanded District Landholding

Total consideration for the Rainbow and Nyco acquisitions is US$89,166 (approximately A$127,500) in cash, plus 480,000 fully paid OD6 shares to be issued under the company's existing Listing Rule 7.1 placement capacity. No royalty or deferred consideration is attached to the transaction. Completion remains subject to customary conditions. The Rainbow claims sit directly adjacent to OD6's existing Bruno Project, where recent sampling at the Red Bluff prospect returned assays of 99.9%, 80.4% and 58.4% CaF2, and the Bruno prospect returned assays of 97.2%, 92.1% and 58.2% CaF2. Upon completion, OD6's total landholding across the Quinn Fluorspar District will encompass 257 mining claims covering approximately 2,135 hectares across eight project areas.