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Cobra Resources Secures Prime Uranium Tenements for Exploration

13 February 2024 09:16
Uranium

Cobra Resources (LSE:COBR) has revealed that its recently acquired exploration licenses hold significant promise for uranium, strategically positioned near IsoEnergy‘s (TSX-V: ISO) Yarranna Uranium Project.

While focusing on testing extensions for roll-front uranium mineralisation, the Company remains dedicated to showcasing the scalability of the Boland ionic Rare Earth Element discovery and advancing in-situ mining recovery at the Wudinna Project.

Uranium Prospectivity

Cobra‘s exploration focus has revolved around the Boland ionic REE discovery, prompting the initiation of sonic core drilling following confirmation of ionic rare earth recoveries last year.

The Company’s dedication lies in delineating the discovery’s extent, concentration of grade, and the potential for in situ recovery (ISR).

Bolstering Boland’s REE prospectivity is its geological setting within the Narlaby Palaeochannel, a system also known for hosting uranium mineralisation, exemplified by IsoEnergy’s Yarranna Project and historical gamma eU3O8 grades reaching up to 1,000 ppm.

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Figure 1: Cobra’s Pureba tenement EL6967 and the location of the Yarranna South East palaeochannel hosted roll-front uranium occurrence

While different commodities, both rare earth elements (REE) and uranium are influenced by similar geological mechanisms within the palaeochannel system, where economically viable deposits can be accessed through low-cost, low-disturbance ISR mining.

Cobra contends that exploring both uranium and REE shouldn’t entail extra expenses for the Company.

Historical water samples from the Yarranna Project reveal concentrations of U3O8 up to 12,300 ug/L and acidities as low as pH 2.7, potentially serving as an acidic source for REE extraction. This supports opportunities for cost reduction in ISR mining and underscores the need for further testing upstream of the Yarranna roll-front.

IsoEnergy’s Yarranna Uranium Project

The Yarranna Uranium Project boasts four well-defined uranium occurrences characterised by roll-fronts hosting extensive zones of mineralisation and high-grade intersections.

Particularly, the eastern roll-front mineralisation at the Yarranna South East prospect has yielded numerous significant intersections within the widely spaced drilling, spanning over 200 metres, showcasing its promising potential. Results include:

  • 1 metre at 708 ppm U3O8 from 66 metres (IR1436)
  • 3 metres at 340 ppm U3O8 from 72 metres, including 1 metre at 420ppm U3O8 from 73 metres (IR1435)
  • 1 metre at 209 ppm U3O8 from 68 metres (IR1448)
  • 0.95 metres at 617 ppm eU3O8 from 69.95 metres (IR1065)

IsoEnergy has seen significant growth alongside the Project, with a market valuation now standing at $900 million CAD, while Cobra’s current market valuation is £6.97 million (equivalent to $11.8 million CAD), showcasing substantial growth potential as it progresses with its dual exploration strategies.

Uranium Market: Poised for a Bull Run

The timing of Cobra’s uranium discoveries couldn’t be more opportune, coinciding with a surge in the uranium market, which has hit its highest levels since 2007, surpassing the significant milestone of US$100/lb.

Additionally, South Australia stands out as a pro-uranium mining jurisdiction, boasting 25% of the world’s uranium resources and hosting Australia’s sole operational uranium mines, including BHP’s Olympic Dam, Heathgate Resources’ Beverley and Four Mile, and Boss Energy’s Honeymoon Mine.

The Next Steps

Moving forward, the Company intends to leverage the wealth of historical data housed in the South Australian core library to achieve several objectives:

  • Confirming the regional scalability of ionic REE mineralisation within the Narlaby Palaeochannel
  • Enhancing roll-front models for the Yarranna South East prospect
  • Identifying roll-front extensions
  • Evaluating spatial relationships between uranium and potential ionic REE mineralisation to facilitate dual resource growth recoverable through ISR mining
  • Delineating and prioritising targets for subsequent Aircore drilling after obtaining necessary native title, landholder, and regulatory approvals

Company Comments

Cobra Resources CEO, Rupert Verco, provided commentary regarding the uranium asset.

“As we advance the potential of ionic REE extraction via ISR at Boland, it is prudent to maximise the resource potential of our assets at minimal additional cost to the work programme,” he said.

“The geological processes that are promoting uranium and REE mineralisation within the Narlaby Palaeochannel are intrinsically related and therefore can be incorporated into our exploration strategy.”

“The extension of Yarranna South East onto our tenement is an exciting complementary opportunity, particularly given the considerable market success of IsoEnergy over the past six months as it approaches nearly A$1 billion in valuation.”

“The uranium spot price is at its highest point since 2007, breaking US$100/lb, and has strong market drivers for both supply and demand that see a robust foreseeable outlook.”

“Cobra has acquired a valuable, scalable asset with significant upside potential. We believe we can cost effectively grow a valuable uranium asset alongside our REE exploration strategy.”

COBR’s London Stock Exchange-listed share price has risen 10% and is currently trading at 1.05 British Pound Sterling (9.15am UTC+ 8 hours).

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