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Cobra Strike at Rare Earth Resource Upgrade

13 June 2023 12:21
LSE: COBR

Cobra Resources continue to demonstrate the potential for significant growth to the Wudinna Projects unique dual gold/REE resource, with new drill results showing total rare earth oxide grades up to 3,568 ppm.

Rare Earth Opportunity

Drilling uncovered a number of potential extensions to the prospects 20.9 Mt at 658 ppm TREO resource, with the resource being shown to extend several directions with intervals up to 25m.

The Company plans to incorporate these newly returned results, as well as assays from 52 further holes, into an upcoming MRE update it expects to deliver later this year.

Alongside the numerous significant rare earth hits, assays also showed considerable amounts of high-value magnetic rare earth oxides at the Project, with MREOs comprising up to 28 per cent of total rare earth oxides.

Intersections from the Bradman prospect have also revealed a potential to increase the iconic component of mineralisation, with hits up to 1,687 ppm showing that rare earth enrichment occurs directly in contact with palaeochannel sediments, reducing the presence of organic material.

Double Resource

The results from this drilling campaign follow up on similarly compelling drill results delivered early last month, with assays grading up to 12m @ 2.35 g/t gold from the Project’s 13,000 Oz gold White Tank resource.

This previous 20 hole campaign targeted extensions for Wudinna’s gold resource across a number of prospects, extending the Clarke prospects strike to over 700 metres and delivered a shallow resource expansion for the 104,000 Oz Barns prospect.

The Company is still awaiting further gold assays from this campaign and plans to include all assays to provide an update to the Projects already significant 211,000 Oz gold resource alongside the REE update.

Looking Forward

With drilling now complete and assays being returned at a steady pace, the Company will now be shifting focus to metallurgical testwork of Wudinna’s REE resource, with select samples from this drilling being used to advance REE metallurgical studies aimed at defining a viable flow sheet for extraction.

The Company said that the results have come at a prime time, with the signing of the Climate, Critical Minerals and Clean Energy Transformation Compact between Australia and the US demonstrating the ongoing need for critical metals.

“It is our ambition to advance the Project to capitalise on the opportunities that shall arise from this strategic partnership,” Chief Executive Rupert Verco said.

“These drilling results confirm the resource growth potential of our unique rare earth resource and will likely inform a significant resource update, establishing Wudinna as a potential tier-1 rare earth project whose unique proximity to gold mineralisation has the potential to contribute favourably to economics.”

COBR’s London Stock Exchange-listed share price was trading at 1.20 British pence today (12:12 pm UTC+ 8 hours).

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