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Cobra Resources Update REE & Gold Dual Resource Estimates at Wudinna

7 September 2023 14:41
LSE: COBR

Cobra Resources (LSE:COBR) have provided an update on its dual resource capabilities at the Wudinna Project in South Australia, finalising changes to both its Rare Earth Elements (REE) and Gold JORC Mineral Resource estimates (MRE), placing the Company in a ‘unique’ and ‘economically advantageous’ position.

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Figure 1: Locality plan – Wudinna Project 2023 MRE Update

Updated REE and Gold Highlights

In June, the Company unveiled its intention to enhance the unique rare earth elements (REE) and gold resources at Wudinna, with recent drill results showcasing total rare earth oxide grades reaching as high as 3,568 ppm.

Cobra’s exclusively unique REE resource overlies the Baggy Green and now Clarke gold resources, providing a competitive metric for low operational costs.

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Figure 2: Cross Section of the Clarke and Baggy Green dual gold and REE resource models demonstrating the complimentary spatial nature of the MREs

The close spatial relationship between rare earth mineralisation and gold mineralisation within the Project holds the potential for economic synergy between the two.

Upgrades to the REE MRE includes:

  • +99% increase in tonnes
  • +5% increase in Magnet Rare Earth Oxide (“MREO”) grade
  • +109% increase in MREO metal content

Cobra Resources has 22 orogenic gold targets within the Project, with a total gold resource of 5.8Mt at 1.5 g/t gold for 279,000 Oz JORC Mineral Resource Estimate.

The location of the gold resource in relation to the surface, estimated to occur within 200 metres, offers a strategic opportunity for the Company in low cost, camp scale open pit extraction with enhanced economics from REE overburden.

Upgrades to the Gold MRE includes:

  • +32% increase in gold metal (+68,000 Oz)
  • +1.4Mt increase in ore tonnes
  • 33,000 Oz maiden MRE estimate at the Clarke prospect

The Company anticipates the gold ounce increases across all deposits, demonstrating potential for additional growth through infill and further extensional drilling.

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Figure 2: Locality plan with Wudinna Project exploration leases

The Wudinna Project

Cobra’s Wudinna tenements encompass an expansive area of 1,832 km², with the Company also operating mining leases in nearby tenements totalling an additional 1,429 km².

Situated within the highly prospective Gawler Craton, the South Australian Project holds significant promise for ionic rare earth mineralisation.

The ongoing efforts on the Project have included a comprehensive three-stage geochemical sampling initiative, a re-assay program that has helped delineate mineralisation, and the completion of 65 reverse circulation (RC) drill holes spanning 9,000 metres. These activities have successfully expanded gold mineralisation across the Clarke, Baggy Green, Barns, and White Tank prospects. Furthermore, the Project boasts a cumulative drilling effort of over 10,000 metres, which has been instrumental in refining gold and IOCG (Iron Oxide Copper Gold) targets while delineating REE mineralisation.

Crucially, the Project’s location lends itself to cost-effective and environmentally friendly in-situ leach mining, a method that the Company recognises as pivotal to the global decarbonisation effort.

Future Outlook

Cobra’s Wudinna tenements boast extensive orogenic gold mineralisation, characterised by high-grade gold intersections that may be amenable to open-pit mining, all conveniently situated with access to infrastructure.

In addition to this, the Project offers a unique REE resource, positioning Cobra to tap into the growing demand for critical minerals essential for decarbonisation initiatives.

Metallurgical tests conducted within the Wudinna Project have revealed impressive MREO recoveries of up to 35% at a pH of one. When compared to other clay-hosted REE projects, these results are notably competitive from an economic standpoint.

These achievements position Cobra favourably for the next phase of exploration, with Rupert Verco, CEO of Cobra Resources, expressing satisfaction with these outcomes, highlighting the resource extensions across all gold deposits and the doubling of rare earth resources, all achieved at remarkably low costs.

“We are one step closer to demonstrating the commercial value of this unique dual resource and Wudinna is undoubtedly presenting as an economically advantageous project to take forward,” he said.

“Cobra’s rare earth strategy has been based upon economic viability. Defining rare earths within overburden provides a competitive edge when compared to stand-alone clay-hosted REE projects – with the exciting additional potential of ionic mineralisation at Boland, where we are eagerly awaiting final metallurgical results to validate proof-of-concept for in situ-leachable, low cost and sustainable sourcing of critical minerals.”

“Between our growing resources and our pipeline of targets such as Boland, Cobra is delivering transformational exploration success with potentially global implications.”

COBR’s London Stock Exchange-listed price is currently trading at £1.15 (2.40pm UTC+ 8 hours).

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