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Cobra Resources Acquires New Exploration Tenement in Tasmania

23 November 2023 09:25

Cobra Resources PLC (LSE:COBR) continues to advance in its rare earth exploration, announcing it has obtained a new 213 square kilometre exploration tenement, located in northern Tasmania.

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Figure 1: Location of new exploration tenement (EL22/2022), demonstrating its proximity to ABx’s Deep Leads / Rubble Mound REE Resource

Prospective New Land

The newly acquired tenements are complementary to Cobra’s ionic rare earth strategy, and are considered to be highly prospective for Ion Absorption Clay hosted rare earth mineralisation.

Cobra reports Ionic Rare Earth Element (REE) mineralisation has been identified on the tenement by ABx Group (ASX: ABX) during their exploration of the area and nearby Projects.

The REE mineralisation was discovered within alluvial channel sediments that are a weathering product of alkali basalts, the chemistry which Cobra notes is ideal for ionic REE adsorption.

The new exploration tenement is located adjacent to ABx’s Deep Leads / Rubble Mound REE Project which boasts a resource of 52 Mt at 817 ppm Total Rare Earth Oxides.

ABx’s Project also has excellent ionic metallurgy amenable to low-cost recovery in weak acid conditions (pH4), akin to Cobra’s Boland discovery at Wudinna.

The Company believes the new tenement provides considerable opportunity for cost-effective defined scalability of ionic REE mineralisation, comparable to the success experienced by its neighbours at the Deep Leads / Rubble Mound Project.

Company Comments

Cobra Resources CEO Rupert Verco commented on obtaining the new tenement.

“We seized an opportunity to secure this tenement adjacent to an outstanding ionic rare earth project with demonstrated low-cost metallurgy, similar to what we have discovered at Boland,” he said.

“IAC hosted rare earth deposits tend to have a higher contained basket value than hard rock deposits due to their higher content of valuable heavy rare earths. Our tenement neighbour has substantially increased its rare earth resource since its maiden estimate in November 2022, and we believe that strong potential exists for scalable ionic clay channel deposits to extend onto Cobra’s tenement EL22/2022.”

“Tasmania has a history of mining industrial metals, with good transport infrastructure, labour, energy, and water availability. We are evaluating strategic options to advance a low-cost exploration programme whilst maintaining our primary focus on advancing our ionic rare earth discovery in South Australia.”

COBR’s London Stock Exchange-listed share price has risen 16.67% and is currently trading at 1.05 pence (9.00am UTC+ 8 hours).

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