REG - Cobra Resources PLC - 2nd Bench Scale ISR Study & £1.7M Placing
26/11/2024 07:15
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241126:nRSZ6619Na&default-theme=true
RNS Number : 6619N Cobra Resources PLC 26 November 2024
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET
ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK
MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE
REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.
26 November 2024
Cobra Resources plc
("Cobra" or the "Company")
Completion of 2nd Bench Scale ISR Study Positions Boland Project for Even
Higher Recoveries at Lower Costs
&
£1.7M Placing to Advance Project Towards Commercialisation
Company well financed to execute on resource definition and in situ recovery
field testing
Cobra (https://cobraplc.com/) (LSE: COBR)
(https://www.londonstockexchange.com/stock/COBR/cobra-resources-plc/company-page)
, the mineral exploration and development company advancing a potentially
world-class ionic Rare Earth Element ("REEs") discovery at its Boland Project
in South Australia, is delighted to announce it has demonstrated exceptional
permeability through a second bench scale in situ recovery ("ISR") test from a
section of core from its Boland Project.
Permeability is a critical enabler of ISR, and the rates achieved in this test
bode well for future productivity.
To define a scalable resource and advance the Boland Project towards
commercialisation, the Company is pleased to announce it has raised gross
proceeds of £1.7 million through an oversubscribed two-tranche placement of
an aggregate 147,826,088 new ordinary shares of 1 pence each in the capital of
the Company ("Ordinary Shares") at a price of 1.15 pence per share as detailed
below (the "Placing").
Highlights of Second Bench Scale ISR Study:
· Ionically bound rare earth metals are not commonly found in permeable
sands amenable to in situ recovery but, at Boland, REEs are ionically bound
within permeable sands, not impermeable clays. This unique geology enables
ISR, eliminating challenges associated with handling and processing clay ores
· Permeability of mineralisation is a key productivity driver of ISR
that can influence critical cost factors such as acid consumption, wellfield
design and metal recovery
· The second bench scale ISR study achieved the following results:
o 121 pore volumes per day or 24.3 metres per day at 5.5 bar pressure
o 43 pore volumes per day or 8.6 metres per day at 2.5 bar pressure
· As a result, the ISR bench scale study has been completed in only 24
hours, compared to the 150 days of the first study
· These results suggest that the sample preparation of the initial
bench scale study impacted permeability as the mineralised interval contained
underlying saprolite. The standard procedure involves homogenising the core
sample. As a result, saprolite was mixed within permeable ore impacting its
permeability
· The excellent permeability observed in the second bench scale ISR
study is expected to result in improved metal recoveries with implications for
potentially lower recovery costs than were inferred from the results of the
first test - which was, itself, successful
· Metal recovery results from the second bench scale ISR test which was
performed with a pH 2 lixiviant are expected within two weeks
· Results for impurity removal and Mixed Rare Earth Carbonate (MREC)
precipitation are pending
· Further bench scale tests will be performed on the remainder of the
mineralised intersection of the retained core
To view a video of the second permeability test and to learn more about its
significance, please click the following link:
https://investors.cobraplc.com/link/7eXGwy
(https://investors.cobraplc.com/link/7eXGwy) .
Webinar
Rupert Verco, Managing Director, will host a live webinar on Tuesday, 3
December 2024 at 11 a.m. GMT to discuss today's news. Investors and interested
parties are invited to register via the link below and submit questions ahead
of time or at any time during the live webinar.
Follow the directions on the Cobra investor hub to register:
https://investors.cobraplc.com/webinars/15-advancing-boland-rare-earth-project-towards-commercialisation
(https://investors.cobraplc.com/webinars/15-advancing-boland-rare-earth-project-towards-commercialisation)
.
A recording of the webinar will be made available on the Cobra website after
the event.
Rupert Verco, Managing Director of Cobra, commented:
"The permeability rates far exceed our internal baseline expectations. Our
initial bench scale study demonstrated the ISR process, highlighting that high
recoveries can be achieved with low-cost inputs, but this second test scales
our opportunity by an order of magnitude.
Our strategy has been to address investment risk first which, in the case of
rare earth projects, is normally associated with the cost of extraction. These
extraordinary permeability results further highlight the unique nature of
Boland mineralisation in this regard.
We are grateful for today's investor support. The funds being raised will help
accelerate the development of the Boland Project where we believe that,
through materialising low-cost ISR mining, we will demonstrate the cost
competitive advantage that Boland presents over other ionic rare earth clay
projects. We will be well financed to execute on resource definition and in
situ recovery field testing.
With consistent short-term and long-term news to be generated from our
multiple work programmes, we expect to deliver material upside to our valued
shareholders."
Placing
Cobra has raised proceeds of £1.7 million before expenses through placements
of 73,311,910 ("Tranche 1 Placing Shares"), 7,992,438 ("Tranche 2 Placing
Shares") and 66,521,740 ("Tranche 2 Conditional Placing Shares") new Ordinary
Shares respectively at a price of 1.15p per share, representing a discount of
approximately 11.5% to the closing price on 25 November 2024.
The Tranche 1 Placing Shares are being issued within the Company's existing
headroom and include support by new and existing shareholders. SI Capital is
acting as lead broker, supported by Global Investment Strategy (GIS).
Due to overwhelming support for the Placing, the 7,992,438 Tranche 2 Placing
Shares could not be covered under the Company's existing headroom and
therefore will be issued with the publication of a secondary prospectus.
Additionally, the Company has received commitments from the Former Lady Alice
Unitholders, who were the original vendors to Cobra of the Wudinna Gold and
Rare Earth Project in 2019, to subscribe, in cash, for the Tranche 2
Conditional Placing Shares, thereby increasing their combined ownership of
Cobra from 29.89% to 32.44%. In total, the Former Lady Alice Unitholders have
committed to invest £765,000 subject to shareholder approval. The issue of
the Tranche 2 Conditional Placing Shares is conditional upon shareholder
approval of a Rule 9 waiver for the Former Lady Alice Unitholders to increase
their aggregate holding, and the publication of a secondary prospectus.
Participants in the Placing will receive a warrant to subscribe for a further
one new Ordinary Share in the Company for every two shares subscribed, which
may be exercised at any time from admission of the applicable tranche of
Placing shares (detailed above) for up to two years with an exercise price of
2.3p. In aggregate, the Company will issue warrants over 73,913,044 new
Ordinary Shares in connection with this Placing (the "Warrants").
In due course, a circular convening a General Meeting for the purposes of,
inter alia, approving a Rule 9 waiver, the issue of the Tranche 2 Placing
Shares and the Tranche 2 Conditional Placing Shares, and the issue of the
shares into which the Warrants may convert, will be published.
Use of Funds
Cobra's recent metallurgical programme has demonstrated the potential to
achieve high ionic recoveries by low-cost, low impact in situ recovery. The
proceeds of the Placing will be used to rapidly advance the project by:
· Resource definition: Both aircore and sonic core drilling to support
a maiden palaeochannel rare earth mineral resource estimate (MRE)
· Regional exploration: Aircore drilling aimed at testing priority
palaeochannel targets prospective for ionic rare earth mineralisation
· Scaled ISR testing: Increase the scale of ISR bench scale tests at
optimised conditions to produce a sufficient quantity of mixed rare earth
carbonate for off take testing
· In field permeability testing: Aimed at emulating the ISR process to
replicate permeability rates achieved at bench scale
· Scoping study: The exploration executed through the above work plans
will support a scoping study aimed at defining the economics of the low-cost
ISR mining operation
Figure 1: Use of funds, subsequent exploration plan and expected market
sensitive news flow
Admission of the Tranche 1 Placing Shares
The Company has made applications to the FCA and the London Stock
Exchange in connection with the admission of the Tranche 1 Placing Shares to
the Official List of the FCA and to trading on the main market of the London
Stock Exchange respectively, which is expected to occur at 8.00 a.m. on 2
December 2024 ("Admission").
Total Voting Rights
The Company hereby notifies the market, in accordance with
the FCA's Disclosure Guidance and Transparency Rule 5.6.1, that, on
Admission, the Company's issued share capital will consist of 799,871,460
ordinary shares, each with one vote. The Company does not hold any ordinary
shares in treasury. On Admission, the total number of voting rights in the
Company will be 799,871,460 and this figure may be used by shareholders as the
denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in, the
Company under the FCA's Disclosure Guidance and Transparency Rules.
Enquiries:
Cobra Resources plc via Vigo Consulting
Rupert Verco (Australia) +44 (0)20 7390 0234
Dan Maling (UK)
SI Capital Limited (Joint Broker) +44 (0)1483 413 500
Nick Emerson
Sam Lomanto
Global Investment Strategy (Joint Broker) +44 (0)20 7048 9437
James Sheehan james.sheehan@gisukltd.com
Vigo Consulting (Financial Public Relations) +44 (0)20 7390 0234
Ben Simons cobra@vigoconsulting.com
Kendall Hill
The person who arranged for the release of this announcement was Rupert Verco,
Managing Director of the Company.
Information in this announcement relates to exploration results that have been
reported in the following announcements:
· Wudinna Project Update: "ISR bench scale study delivers exceptional
results", dated 1 October 2024
· Wudinna Project Update: "ISR bench scale update - Exceptionally high
recoveries with low impurities and low acid consumption; on path to disrupt
global supply
of heavy rare earths", dated 28 August 2024
· Wudinna Project Update: "ISR bench scale update -Further
metallurgical success at world leading ISR rare earth project", dated 11 July
2024
· Wudinna Project Update: "ISR bench scale update - Exceptional head
grades revealed", dated 18 June 2024
· Wudinna Project Update: "Re-Assay Results Confirm High Grades Over
Exceptional Scale at Boland", dated 26 April 2024
· Wudinna Project Update: "Drilling results from Boland Prospect",
dated 25 March 2024
· Wudinna Project Update: "Historical Drillhole Re-Assay Results",
dated 27 February 2024
· Wudinna Project Update: "Ionic Rare Earth Mineralisation at Boland
Prospect", dated 11 September 2023
· Wudinna Project Update: "Exceptional REE Results Defined at Boland",
dated 20 June 2023
Competent Persons Statement
Information in this announcement has been assessed by Mr Rupert Verco, a
Fellow of the Australasian Institute of Mining and Metallurgy. Mr Verco is an
employee of Cobra and has more than 16 years' industry experience which is
relevant to the style of mineralisation, deposit type, and activity which he
is undertaking to qualify as a Competent Person as defined in the 2012 Edition
of the Australasian Code for Reporting Exploration Results, Mineral Resources
and Ore Reserves of JORC. This includes 11 years of Mining, Resource
Estimation and Exploration.
About Cobra
In 2023, Cobra discovered a rare earth deposit with the potential to re-define
the cost of rare earth production. The highly scalable Boland ionic rare earth
discovery at Cobra's Wudinna Project in South Australia's Gawler Craton is
Australia's only rare earth project amenable for in situ recovery ("ISR")
mining - a low cost, low disturbance method. Cobra is focused on de-risking
the investment value of the discovery by proving ISR as the preferred mining
method which would eliminate challenges associated with processing clays and
provide Cobra with the opportunity to define a low-cost pathway to production.
Cobra's Wudinna tenements also contain extensive orogenic gold mineralisation,
including a 279,000 Oz gold JORC Mineral Resource Estimate, characterised by
low levels of over-burden, amenable to open pit mining.
Regional map showing Cobra's tenements in the heart of the Gawler Craton
Follow us on social media:
LinkedIn: https://www.linkedin.com/company/cobraresourcesplc
(https://www.linkedin.com/company/cobraresourcesplc)
X (Twitter): https://twitter.com/Cobra_Resources
(https://twitter.com/Cobra_Resources)
Engage with us by asking questions, watching video summaries and seeing what
other shareholders have to say. Navigate to our Interactive Investor hub here:
https://investors.cobraplc.com/ (https://investors.cobraplc.com/)
Subscribe to our news alert service:
https://investors.cobraplc.com/auth/signup
(https://investors.cobraplc.com/auth/signup)
Appendices
Table 1: Head Assay data for samples from CBSC0002 Zone 3 used in the
Permeability Study
Sample ID m From m To TREO ppm Nd2O3 ppm Pr6O11 ppm Tb2O3 ppm Dy2O3 ppm MREO ppm HREO ppm Used in Permeability Study
141245 26.50 26.60 630 85 29 2 15 132 166 Study 2
141246 26.60 26.70 1,559 212 78 5 30 324 325 Study 2
141247 26.70 26.80 3,580 554 168 14 81 817 877 Planned (study 3)
141248 26.80 26.90 4,714 734 223 18 107 1082 1130 Planned (study 3)
141249 26.90 26.95 2,973 475 131 13 73 691 812 Planned (study 3)
141250 26.95 27.00 3,365 544 149 16 89 798 957 Planned (study 3)
141251 27.00 27.10 2,067 293 88 8 45 433 490 Planned (study 4)
141252 27.10 27.20 1,322 166 54 4 24 248 270 Planned (study 4)
141253 27.20 27.30 1,123 135 47 3 18 203 213 Planned (study 4)
141254 27.30 27.40 918 112 39 3 15 169 171
141255 27.40 27.50 485 67 20 2 12 100 133
Appendix 1: JORC Code, 2012 Edition - Table 1
Criteria JORC Code explanation Commentary
Sampling techniques · Nature and quality of sampling (eg cut channels, random chips, or 2024
specific specialised industry standard measurement tools appropriate to the
minerals under investigation, such as down hole gamma sondes, or handheld XRF SONIC
instruments, etc). These examples should not be taken as limiting the broad
meaning of sampling. · Core was scanned by a SciAps X555 pXRF to determine sample
intervals. Intervals through mineralized zones were taken at 10cm. Through
· Include reference to measures taken to ensure sample representivity waste, sample intervals were lengthened to 50cm. Core was halved by knife
and the appropriate calibration of any measurement tools or systems used. cutting. XRF scan locations were taken on an inner surface of the core to
ensure readings were taken on fresh sample faces.
· Aspects of the determination of mineralisation that are Material to
the Public Report. Full core samples were submitted to Australian Nuclear Science and Technology
Organisation (ANSTO), Sydney for XRF analysis and to ALS Geochemistry
· In cases where 'industry standard' work has been done this would be Laboratory (Brisbane) on behalf of ANSTO for lithium tetraborate digest
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m ICP-MS. The core was split in half along the vertical axis, and one half
samples from which 3 kg was pulverised to produce a 30 g charge for fire further split into 10 even fractions along the length of the half-core.
assay'). In other cases more explanation may be required, such as where there Additional sub-sampling, homogenisation and drying steps were performed to
is coarse gold that has inherent sampling problems. Unusual commodities or generate ~260 g (dry equivalent) samples for head assay according to the
mineralisation types (eg submarine nodules) may warrant disclosure of detailed laboratory internal protocols.
information.
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary 2024
air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or
standard tube, depth of diamond tails, face-sampling bit or other type, · Sonic Core drilling completed Star Drilling using 4" core with a
whether core is oriented and if so, by what method, etc). SDR12 drill rig. Holes were reamed to 6" or 8" to enable casing and screens to
be installed
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and Aircore & RC
results assessed.
· Sample recovery was generally good. All samples were recorded for
· Measures taken to maximise sample recovery and ensure representative sample type, quality and contamination potential and entered within a sample
nature of the samples. log.
· Whether a relationship exists between sample recovery and grade and · In general, sample recoveries were good with 10 kg for each 1 m
whether sample bias may have occurred due to preferential loss/gain of interval being recovered from AC drilling.
fine/coarse material.
· No relationships between sample recovery and grade have been
identified.
· RC drilling completed by Bullion Drilling Pty Ltd using 5 ¾"
reverse circulation drilling techniques from a Schramm T685WS rig with an
auxiliary compressor
· Sample recovery for RC was generally good. All samples were
recorded for sample type, quality and contamination potential and entered
within a sample log.
· In general, RC sample recoveries were good with 35-50 kg for each
1 m interval being recovered.
· No relationships between sample recovery and grade have been
identified.
Sonic Core
· Sample recovery is considered excellent.
Logging · Whether core and chip samples have been geologically and
geotechnically logged to a level of detail to support appropriate Mineral
Resource estimation, mining studies and metallurgical studies. Sonic Core
· Whether logging is qualitative or quantitative in nature. Core (or · Logging was carried out in detail, determining lithology and
costean, channel, etc) photography. clay/ sand content. Logging intervals were lithology based with variable
interval lengths.
· The total length and percentage of the relevant intersections logged.
· All core drilled has been lithologically logged.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core
taken.
Sonic Drilling
· If non-core, whether riffled, tube sampled, rotary split, etc and
whether sampled wet or dry.
· For all sample types, the nature, quality and appropriateness of the · Field duplicate samples were taken nominally every 1 in 25
sample preparation technique. samples where the sampled interval was quartered.
· Quality control procedures adopted for all sub-sampling stages to · Blanks and Standards were submitted every 25 samples
maximise representivity of samples.
· Half core samples were taken where lab geochemistry sample were
· Measures taken to ensure that the sampling is representative of the taken.
in situ material collected, including for instance results for field
duplicate/second-half sampling. · In holes where column leach test samples have been submitted,
full core samples have been submitted over the test areas.
· Whether sample sizes are appropriate to the grain size of the
material being sampled.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and Sample Characterisation Test Work performed by the Australian Nuclear Science
laboratory procedures used and whether the technique is considered partial or and Technology Organisation (ANSTO)
total.
· For geophysical tools, spectrometers, handheld XRF instruments, etc,
the parameters used in determining the analysis including instrument make and · Full core samples were submitted to Australian Nuclear Science
model, reading times, calibrations factors applied and their derivation, etc. and Technology Organisation (ANSTO), Sydney for preparation and analysis. The
core was split in half along the vertical axis, and one half further split
· Nature of quality control procedures adopted (eg standards, blanks, into 10 even fractions along the length of the half-core. Additional
duplicates, external laboratory checks) and whether acceptable levels of sub-sampling, homogenisation and drying steps were performed to generate ~260
accuracy (ie lack of bias) and precision have been established. g (dry equivalent) samples for head assay according to the laboratory internal
protocols.
· Multi element geochemistry of solid samples were analysed at
ANSTO (Sydney) by XRF for the major gangue elements Al, Ca, Fe, K, Mg, Mn, Na,
Ni, P, Si, S, and Zn.
· Multi element geochemistry of solid samples were additionally
analysed at ALS Geochemistry Laboratory (Brisbane) on behalf of ANSTO by
lithium tetraborate digest ICP-MS and analysed for Ce, Dy, Er, Eu, Gd, Ho,
La, Lu, Nd, Pr, Sm, Tb, Th, Tm, U, Y and Yb.
· Reported assays are to acceptable levels of accuracy and
precision.
· Internal laboratory blanks, standards and repeats for rare earths
indicated acceptable assay accuracy.
· Samples retained for metallurgical analysis were immediately
vacuum packed, nitrogen purged and refrigerated.
· These samples were refrigerated throughout transport.
Metallurgical Leach Test Work performed by the Australian Nuclear Science and
Technology Organisation (ANSTO)
· ANSTO laboratories prepared ~80g samples for diagnostic leaches, a
443g sample for a slurry leach and a 660g sample for a column leach.
Sub-samples were prepared from full cores according to the laboratory internal
protocols. Diagnostic and slurry leaching were carried out in baffled leach
vessels equipped with an overhead stirrer and applying a 0.5 M (NH4)2SO4
lixiviant solution, adjusted to the select pH using H2SO4.
· 1 M H2SO4 was utilised to maintain the test pH for the duration of
the test, if necessary. The acid addition was measured.
· Thief liquor samples were taken periodically.
· At the completion of each test, the final pH was measured, the slurry
was vacuum filtered to separate the primary filtrate.
· The thief samples and primary filtrate were analysed as follows:
o ICP-MS for Ce, Dy, Er, Eu, Gd, Ho, La, Lu, Mn, Nd, Pb, Pr, Sc, Sm, Tb, Th,
Tm, U, Y, Yb.
o ICP-OES for Al, Ca, Fe, K, Mg, Mn, Na, Si.
· The water wash was stored but not analysed.
· Column leaching was carried out in horizontal leaching column. The
column was pressurised with nitrogen to 6 bar and submerged in a temperature
controlled bath.
· A 0.5 M (NH4)2SO4 lixiviant solution, adjusted to the select pH using
H2SO4 was fed to the column at a controlled flowrate.
· PLS collected from the end of the column was weighed, the SH and pH
measured and the free acid concentration determined by titration. Liquor
samples were taken from the collected PLS and analysed as follows:
o ICP-MS for Ce, Dy, Er, Eu, Gd, Ho, La, Lu, Mn, Nd, Pb, Pr, Sc, Sm, Tb, Th,
Tm, U, Y, Yb.
o ICP-OES for Al, Ca, Fe, K, Mg, Mn, Na, Si.
· The column leach test has been completed. Assays of the column are
being taken to confirm PLS assays
Verification of sampling and assaying · The verification of significant intersections by either independent · Sampling data was recorded in field books, checked upon
or alternative company personnel. digitising and transferred to database.
· The use of twinned holes. · Geological logging was undertaken digitally via the MX Deposit
logging interface and synchronised to the database at least daily during the
· Documentation of primary data, data entry procedures, data drill programme.
verification, data storage (physical and electronic) protocols.
· Compositing of assays was undertaken and reviewed by Cobra
· Discuss any adjustment to assay data. Resources staff.
· Original copies of laboratory assay data are retained digitally
on the Cobra Resources server for future reference.
· Samples have been spatially verified through the use of Datamine
and Leapfrog geological software for pre 2021 and post 2021 samples and
assays.
· Twinned drillholes from pre 2021 and post 2021 drill programmes
showed acceptable spatial and grade repeatability.
· Physical copies of field sampling books are retained by Cobra
Resources for future reference.
· Elevated pXRF grades were checked and re-tested where anomalous.
pXRF grades are semi quantitative.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar Pre 2021
and down-hole surveys), trenches, mine workings and other locations used in
Mineral Resource estimation. · Collar locations were pegged using DGPS to an accuracy of +/-0.5
m.
· Specification of the grid system used.
· Downhole surveys have been completed for deeper RC and diamond
· Quality and adequacy of topographic control. drillholes
· Collars have been picked up in a variety of coordinate systems
but have all been converted to MGA 94 Zone 53. Collars have been spatially
verified in the field.
· Collar elevations were historically projected to a geophysical
survey DTM. This survey has been adjusted to AHD using a Leica CS20 GNSS base
and rover survey with a 0.05 cm accuracy. Collar points have been re-projected
to the AHD adjusted topographical surface.
2021-onward
· Collar locations were initially surveyed using a mobile phone
utilising the Avenza Map app. Collar points recorded with a GPS horizontal
accuracy within 5 m.
· RC Collar locations were picked up using a Leica CS20 base and
Rover with an instrument precision of 0.05 cm accuracy.
· Locations are recorded in geodetic datum GDA 94 zone 53.
· No downhole surveying was undertaken on AC holes. All holes were
set up vertically and are assumed vertical.
· RC holes have been down hole surveyed using a Reflex TN-14 true
north seeking downhole survey tool or Reflex multishot
· Downhole surveys were assessed for quality prior to export of
data. Poor quality surveys were downgraded in the database to be excluded from
export.
· All surveys are corrected to MGA 94 Zone 53 within the MX Deposit
database.
· Cased collars of sonic drilling shall be surveyed before a
mineral resource estimate
Data spacing and distribution · Data spacing for reporting of Exploration Results. · Drillhole spacing was designed on transects 50-80 m apart.
Drillholes generally 50-60 m apart on these transects but up to 70 m apart.
· Whether the data spacing and distribution is sufficient to establish
the degree of geological and grade continuity appropriate for the Mineral · Additional scouting holes were drilled opportunistically on
Resource and Ore Reserve estimation procedure(s) and classifications applied. existing tracks at spacings 25-150 m from previous drillholes.
· Whether sample compositing has been applied. · Regional scouting holes are drilled at variable spacings designed
to test structural concepts
· Data spacing is considered adequate for a saprolite hosted rare
earth Mineral Resource estimation.
· No sample compositing has been applied
· Sonic core holes were drilled at ~20m spacings in a wellfield
configuration based on assumed permeability potential of the intersected
geology.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · Aircore and Sonic drill holes are vertical.
possible structures and the extent to which this is known, considering the
deposit type.
· If the relationship between the drilling orientation and the
orientation of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if material.
Sample security · The measures taken to ensure sample security. · Transport of samples to Adelaide was undertaken by a competent
independent contractor. Samples were packaged in zip tied polyweave bags in
bundles of 5 samples at the drill rig and transported in larger bulka bags by
batch while being transported.
· Refrigerated transport of samples to Sydney was undertaken by a
competent independent contractor. Samples were double bagged, vacuum sealed,
nitrogen purged and placed within PVC piping.
· There is no suspicion of tampering of samples.
Audits or reviews · The results of any audits or reviews of sampling techniques and data. · No laboratory audit or review has been undertaken.
· Genalysis Intertek and BV Laboratories Adelaide are NATA (National
Association of Testing Authorities) accredited laboratory, recognition of
their analytical competence.
Appendix 2: Section 2 reporting of exploration results
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including · RC drilling occurred on EL 6131, currently owned 100% by Peninsula
agreements or material issues with third parties such as joint ventures, Resources limited, a wholly owned subsidiary of Andromeda Metals Limited.
partnerships, overriding royalties, native title interests, historical sites,
wilderness or national park and environmental settings. · Alcrest Royalties Australia Pty Ltd retains a 1.5% NSR royalty over
future mineral production from licenses EL6001, EL5953, EL6131, EL6317 and
· The security of the tenure held at the time of reporting along with EL6489.
any known impediments to obtaining a licence to operate in the area.
· Baggy Green, Clarke, Laker and the IOCG targets are located within
Pinkawillinnie Conservation Park. Native Title Agreement has been negotiated
with the NT Claimant and has been registered with the SA Government.
· Aboriginal heritage surveys have been completed over the Baggy Green
Prospect area, with no sites located in the immediate vicinity.
· A Native Title Agreement is in place with the Barngarla People.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · On-ground exploration completed prior to Andromeda Metals' work was
limited to 400 m spaced soil geochemistry completed by Newcrest Mining Limited
over the Barns prospect.
· Other than the flying of regional airborne geophysics and coarse
spaced ground gravity, there has been no recorded exploration in the vicinity
of the Baggy Green deposit prior to Andromeda Metals' work.
· Paleochannel uranium exploration was undertaken by various parties in
the 1980s and the 2010s around the Boland Prospect. Drilling was primarily
rotary mud with downhole geophysical logging the primary interpretation
method.
Geology · Deposit type, geological setting and style of mineralisation. · The gold and REE deposits are considered to be related to the
structurally controlled basement weathering of epidote- pyrite alteration
related to the 1590 Ma Hiltaba/GRV tectonothermal event.
· Mineralisation has a spatial association with mafic
intrusions/granodiorite alteration and is associated with metasomatic
alteration of host rocks. Epidote alteration associated with gold
mineralisation is REE enriched and believed to be the primary source.
· Rare earth minerals occur within the saprolite horizon. XRD analysis
by the CSIRO identifies kaolin and montmorillonite as the primary clay phases.
· SEM analysis identified REE bearing mineral phases in hard rock:
· Zircon, titanite, apatite, andradite and epidote.
· SEM analyses identifies the following secondary mineral phases in
saprock:
· Monazite, bastanite, allanite and rutile.
· Elevated phosphates at the base of saprock do not correlate to rare
earth grade peaks.
· Upper saprolite zones do not contain identifiable REE mineral phases,
supporting that the REEs are adsorbed to clay particles.
· Acidity testing by Cobra Resources supports that pH chemistry may act
as a catalyst for Ionic and Colloidal adsorption.
· REE mineral phase change with varying saprolite acidity and REE
abundances support that a component of REE bursary is adsorbed to clays.
· Palaeo drainage has been interpreted from historic drilling and
re-interpretation of EM data that has generated a top of basement model.
· Ionic REE mineralisation is confirmed through metallurgical
desorption testing where high recoveries are achieved at benign acidities
(pH4-3) at ambient temperature.
· Ionic REE mineralisation occurs in reduced clay intervals that
contact both saprolite and permeable sand units. Mineralisation contains
variable sand quantities that yield permeability and promote insitu recovery
potentail
Drillhole Information · A summary of all information material to the understanding of the · Exploration results being reported represent a small portion of the
exploration results including a tabulation of the following information for Boland target area. Coordinates for Wellfield drill holes are presented in
all Material drill holes: Table 3.
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level - elevation above sea level in metres) of
the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
· If the exclusion of this information is justified on the basis that
the information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain why
this is the case.
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, · Reported summary intercepts are weighted averages based on length.
maximum and/or minimum grade truncations (eg cutting of high grades) and
cut-off grades are usually Material and should be stated. · No maximum/ minimum grade cuts have been applied.
· Where aggregate intercepts incorporate short lengths of high grade · No metal equivalent values have been calculated.
results and longer lengths of low grade results, the procedure used for such
aggregation should be stated and some typical examples of such aggregations · Gold results are reported to a 0.3 g/t cut-off with a maximum of 2m
should be shown in detail. internal dilution with a minimum grade of 0.1 g/t Au.
· The assumptions used for any reporting of metal equivalent values · Rare earth element analyses were originally reported in elemental
should be clearly stated. form and have been converted to relevant oxide concentrations in line with
industry standards. Conversion factors tabulated below:
·
Element Oxide Factor
Cerium CeO(2) 1.2284
Dysprosium Dy(2)O(3) 1.1477
Erbium Er(2)O(3) 1.1435
Europium Eu(2)O(3) 1.1579
Gadolinium Gd(2)O(3) 1.1526
Holmium Ho(2)O(3) 1.1455
Lanthanum La(2)O(3) 1.1728
Lutetium Lu(2)O(3) 1.1371
Neodymium Nd(2)O(3) 1.1664
Praseodymium Pr(6)O(11) 1.2082
Scandium Sc(2)O(3) 1.5338
Samarium Sm(2)O(3) 1.1596
Terbium Tb(4)O(7) 1.1762
Thulium Tm(2)O(3) 1.1421
Yttrium Y(2)O(3) 1.2699
Ytterbium Yb(2)O(3) 1.1387
· The reporting of REE oxides is done so in accordance with industry
standards with the following calculations applied:
· TREO = La(2)O(3) + CeO(2) + Pr(6)O(11) + Nd(2)O(3) + Sm(2)O(3) +
Eu(2)O(3) + Gd(2)O(3) + Tb(4)O(7) + Dy(2)O(3) + Ho(2)O(3) + Er(2)O(3) +
Tm(2)O(3) + Yb(2)O(3) + Lu(2)O(3) + Y(2)O(3)
· CREO = Nd(2)O(3) + Eu(2)O(3) + Tb(4)O(7) + Dy(2)O(3) + Y(2)O(3)
· LREO = La(2)O(3) + CeO(2) + Pr(6)O(11) + Nd(2)O(3)
· HREO = Sm(2)O(3) + Eu(2)O(3) + Gd(2)O(3) + Tb(4)O(7) + Dy(2)O(3)
+ Ho(2)O(3) + Er(2)O(3) + Tm(2)O(3) + Yb(2)O(3) + Lu(2)O(3) + Y(2)O(3)
· MREO = Nd(2)O(3) + Pr(6)O(11) + Tb(4)O(7) + Dy(2)O(3)
· NdPr = Nd(2)O(3) + Pr(6)O(11)
· TREO-Ce = TREO - CeO(2)
· % Nd = Nd(2)O(3)/ TREO
· % Pr = Pr(6)O(11)/TREO
· % Dy = Dy(2)O(3)/TREO
· % HREO = HREO/TREO
· % LREO = LREO/TREO
· XRF results are used as an indication of potential grade only.
Due to detection limits only a combined content of Ce, La, Nd, Pr & Y has
been used. XRF grades have not been converted to oxide.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · All reported intercepts at Boland are vertical and reflect true width
Exploration Results. intercepts.
· If the geometry of the mineralisation with respect to the drill hole · Exploration results are not being reported for the Mineral Resource
angle is known, its nature should be reported. area.
· If it is not known and only the down hole lengths are reported, there
should be a clear statement to this effect (eg 'down hole length, true width
not known').
Diagrams · Appropriate maps and sections (with scales) and tabulations of · Relevant diagrams have been included in the announcement.
intercepts should be included for any significant discovery being reported
These should include, but not be limited to a plan view of drill hole collar · Exploration results are not being reported for the Mineral Resources
locations and appropriate sectional views. area.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · Not applicable - Mineral Resource and Exploration Target are defined.
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration · Exploration results are not being reported for the Mineral Resource
Results. area.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · Refer to previous announcements listed in RNS for reporting of REE
reported including (but not limited to): geological observations; geophysical results and metallurgical testing
survey results; geochemical survey results; bulk samples - size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.
Further work · The nature and scale of planned further work (eg tests for lateral · The metallurgical testing reported in this announcement represents
extensions or depth extensions or large-scale step-out drilling). the second bench scale ISR study performed on a 20cm section of mineralized
core
· Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling areas, · Future metallurgical testing will focus on producing PLS under leach
provided this information is not commercially sensitive. conditions to conduct downstream bench-scale studies for impurity removal and
product precipitation.
· Hydrology, permeability and mineralogy studies are being performed on
core samples.
· Installed wells are being used to capture hydrology base line data to
support a future infield pilot study.
· Trace line tests shall be performed to emulate bench scale pore
volumes.
· The reporting of REE oxides is done so in accordance with industry
standards with the following calculations applied:
· TREO = La(2)O(3) + CeO(2) + Pr(6)O(11) + Nd(2)O(3) + Sm(2)O(3) +
Eu(2)O(3) + Gd(2)O(3) + Tb(4)O(7) + Dy(2)O(3) + Ho(2)O(3) + Er(2)O(3) +
Tm(2)O(3) + Yb(2)O(3) + Lu(2)O(3) + Y(2)O(3)
· CREO = Nd(2)O(3) + Eu(2)O(3) + Tb(4)O(7) + Dy(2)O(3) + Y(2)O(3)
· LREO = La(2)O(3) + CeO(2) + Pr(6)O(11) + Nd(2)O(3)
· HREO = Sm(2)O(3) + Eu(2)O(3) + Gd(2)O(3) + Tb(4)O(7) + Dy(2)O(3)
+ Ho(2)O(3) + Er(2)O(3) + Tm(2)O(3) + Yb(2)O(3) + Lu(2)O(3) + Y(2)O(3)
· MREO = Nd(2)O(3) + Pr(6)O(11) + Tb(4)O(7) + Dy(2)O(3)
· NdPr = Nd(2)O(3) + Pr(6)O(11)
· TREO-Ce = TREO - CeO(2)
· % Nd = Nd(2)O(3)/ TREO
· % Pr = Pr(6)O(11)/TREO
· % Dy = Dy(2)O(3)/TREO
· % HREO = HREO/TREO
· % LREO = LREO/TREO
· XRF results are used as an indication of potential grade only.
Due to detection limits only a combined content of Ce, La, Nd, Pr & Y has
been used. XRF grades have not been converted to oxide.
Relationship between mineralisation widths and intercept lengths
· These relationships are particularly important in the reporting of
Exploration Results.
· If the geometry of the mineralisation with respect to the drill hole
angle is known, its nature should be reported.
· If it is not known and only the down hole lengths are reported, there
should be a clear statement to this effect (eg 'down hole length, true width
not known').
· All reported intercepts at Boland are vertical and reflect true width
intercepts.
· Exploration results are not being reported for the Mineral Resource
area.
Diagrams
· Appropriate maps and sections (with scales) and tabulations of
intercepts should be included for any significant discovery being reported
These should include, but not be limited to a plan view of drill hole collar
locations and appropriate sectional views.
· Relevant diagrams have been included in the announcement.
· Exploration results are not being reported for the Mineral Resources
area.
Balanced reporting
· Where comprehensive reporting of all Exploration Results is not
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration
Results.
· Not applicable - Mineral Resource and Exploration Target are defined.
· Exploration results are not being reported for the Mineral Resource
area.
Other substantive exploration data
· Other exploration data, if meaningful and material, should be
reported including (but not limited to): geological observations; geophysical
survey results; geochemical survey results; bulk samples - size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.
· Refer to previous announcements listed in RNS for reporting of REE
results and metallurgical testing
Further work
· The nature and scale of planned further work (eg tests for lateral
extensions or depth extensions or large-scale step-out drilling).
· Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.
· The metallurgical testing reported in this announcement represents
the second bench scale ISR study performed on a 20cm section of mineralized
core
· Future metallurgical testing will focus on producing PLS under leach
conditions to conduct downstream bench-scale studies for impurity removal and
product precipitation.
· Hydrology, permeability and mineralogy studies are being performed on
core samples.
· Installed wells are being used to capture hydrology base line data to
support a future infield pilot study.
· Trace line tests shall be performed to emulate bench scale pore
volumes.
Table 2: Drillhole coordinates
Prospect Hole number Grid Northing Easting Elevation
Boland CBSC0001 GDA94 / MGA zone 53 6365543 534567 102.9
Boland CBSC0002 GDA94 / MGA zone 53 6365510 534580 104.1
Boland CBSC0003 GDA94 / MGA zone 53 6365521 534554 102.7
Boland CBSC0004 GDA94 / MGA zone 53 6365537 534590 105
Boland CBSC0005 GDA94 / MGA zone 53 6365528 534573 103.2
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END UPDBFBRTMTMTMTIRecent news on Cobra Resources
See all newsREG - Cobra Resources PLC - Final Results for the Year Ended 31 December 2024
AnnouncementREG - Cobra Resources PLC - Sonic Drilling Commences at Boland
AnnouncementREG - Cobra Resources PLC - Updates re Rare Earth & Gold Projects
AnnouncementRCS - Cobra Resources PLC - Response to China’s Rare Earths Export Controls
AnnouncementREG - Official List - Official List Notice
Announcement