REG - Cobra Resources PLC - Boland Re-Assay Results & Placing
26/04/2024 07:00
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RNS Number : 1834M Cobra Resources PLC 26 April 2024
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26 April 2024
Cobra Resources plc
("Cobra" or the "Company")
Re-Assay Results Confirm High Grades Over Exceptional Scale at Boland
&
£600,000 Placing Completed to Advance Work Programme
Cobra (https://cobraplc.com/) (LSE: COBR)
(https://www.londonstockexchange.com/stock/COBR/cobra-resources-plc/company-page)
, an exploration company focused on the Wudinna Project ("Wudinna") in South
Australia, is pleased to announce re-assay results which support regionally
scalable, high grade rare earth ("REE") mineralisation at Boland which is
amenable to in situ recovery ("ISR").
In order to accelerate the strategy to realise the value of Boland, and
progress towards a Scoping Study, the Company is also pleased to announce it
has raised gross proceeds of £600,000 through a placing (the "Placing") of
60,000,000 new ordinary shares of 1p each in the capital of the Company at a
price of 1p per share. Approximately 30% of the Placing was to Australian
investors including certain original vendors of the Wudinna Project.
Highlights:
Historical drillholes yield high grades over exceptional scale
· Extensive Rare Earth Mineralisation: Significant intersections of
rare earth mineralisation from historical drill samples of across 11.5km of
palaeochannel sediments, supporting the Company's modelled interpretation of
mineralised lithologies extending over ~139km(2) (at Boland alone)
o Results from 13 drillholes (233 samples) received; a further 869 samples
from 42 drillholes have been submitted for re-assay and are expected in the
coming weeks
· De-risking Economic Recovery of Ionic REE Mineralisation: The
Australian Nuclear Scientific and Technology Organisation ("ANSTO") is
preparing a column leach trial on core samples from the installed wellfield to
test recovery potential under ISR conditions
o Results of this work are expected in June 2024
· High Grade: Multiple high-grade intersections where:
o Maximum grade of 2m at 2,708 ppm Total Rare Earth Oxides ("TREO"), where
Nd(2)O(3) + Pr(6)O(11) totals 1,066 ppm and Dy(2)O(3) + Tb(2)O(3) totals 151
ppm Magnet Rare Earth Oxides ("MREO") 22%, Heavy Rare Earth Oxides ("HREO")
21% from 2m
· Valuable Basket: MREO of intersections averaging 23% of the TREO,
with HREO enrichment up to 37% of the TREO
· Shallow: High-grade mineralisation identified in upper palaeochannel
clay zones north of the recently installed wellfield 2m from surface
Placing to accelerate development of ionic REE discovery towards a Scoping
Study
· Raised £600,000: accelerates strategy to define economic value from
the Boland REE discovery through advancing ISR as the preferred extraction
method, undertaking Aircore drilling to support a maiden Mineral Resource
Estimate over the interpreted 139km(2) of mineralisation, and progressing
metallurgical work in preparation to undertake a Scoping Study
Rupert Verco, CEO of Cobra, commented:
"When we first drilled the Boland prospect a year ago, we believed that the
geological conditions were supportive of ionic mineralisation and amenable to
ISR. We are now methodically de-risking aspects necessary for the Boland
prospect to produce a resource that will have the capacity to change the cost
and environmental profile of magnet and heavy rare earth mining.
These results validate our interpretation for the potential scale of ionic
mineralisation across the Narlaby Palaeochannel. With further results to come,
we will be able to refine our interpretations and plan resource drilling to
target high-grade zones of mineralisation. This is exciting, considering that
the interpreted 139km(2) at Boland only represents 5% of the palaeochannels
held across Cobra's extensive land tenure.
Our Sonic core drilling demonstrated high-grade concentration and these
results are supporting scale for a future resource. We are eagerly awaiting
ANSTO's completion of our column ISR tests to confirm our belief that this
mineralisation can be mined by this most cost-effective form of mining, thus
demonstrating the economic value of the Boland discovery.
Greg Hancock, Chairman of Cobra, commented:
"We are pleased to have received further investor support today, corner stoned
once again by some of the original vendors to the Company of Wudinna. With
100% of the project now under Cobra's ownership, these funds will enable us to
accelerate progress towards unlocking the transformational value we believe
exists within this unique geology that has the capacity to alter the western
world's access to critical magnet and heavy rare earths.
Rupert and the team are experienced in ISR having been involved in Uranium
operations previously. This is a well known and proven form of mining, and one
in which we continue to receive encouraging evidence to suggest it can be
applied to our unique REE discovery at Boland. "
Boland Re-Assay Results - Significant Intersections
· IR 114 intersected 2m at 2,407 ppm TREO, where Nd(2)O(3) + Pr(6)O(11)
totals 737 ppm and Dy(2)O(3) + Tb(2)O(3) totals 40 ppm (MREO 32%, HREO 11%)
from 4m and 2m at 564 ppm TREO, where Nd(2)O(3) + Pr(6)O(11) totals 130 ppm
and Dy(2)O(3) + Tb(2)O(3) totals 12 ppm (MREO 25%, HREO 15%) from 16m
· IR 229 intersected 8m at 1,763 ppm TREO, where Nd(2)O(3) + Pr(6)O(11)
totals 354 ppm and Dy(2)O(3) + Tb(2)O(3) totals 47 ppm (MREO 32%, HREO 21%)
from 2m
· IR 112 intersected 6m at 964 ppm TREO, where Nd(2)O(3) + Pr(6)O(11)
totals 184 ppm and Dy(2)O(3) + Tb(2)O(3) totals 24 ppm (MREO 22%, HREO 19%)
from 42m, including 3m at 1,392 ppm TREO, where Nd(2)O(3) + Pr(6)O(11) totals
263 ppm and Dy(2)O(3) + Tb(2)O(3) totals 36 ppm (MREO 21%, HREO 20%) from 42m
· IR 237 intersected 8m at 641 ppm TREO, where Nd(2)O(3) + Pr(6)O(11)
totals 124 ppm and Dy(2)O(3) + Tb(2)O(3) totals 19 ppm (MREO 22%, HREO 27%)
from 16m
· IR 117 intersected 2m at 691 ppm TREO, where Nd(2)O(3) + Pr(6)O(11)
totals 148 ppm and Dy(2)O(3) + Tb(2)O(3) totals 11 ppm (MREO 22%, HREO 12%)
from 14m and 4m at 685 ppm TREO, where Nd(2)O(3) + Pr(6)O(11) totals 187 ppm
and Dy(2)O(3) + Tb(2)O(3) totals 6 ppm (MREO 28%, HREO 10%) from 42m
Boland Strategy
Cobra is progressing the ISR potential of ionic rare earths from permeable
geology, where metallurgical analysis has yielded high recoveries of MREOs and
HREOs through a simple ammonium nitrate, sulphuric acid wash. Recently, the
Company installed a wellfield in preparation to test the environmental and
cost-effective mining process of ISR.
ISR is a scalable, low capital-intensive form of mining already widely used to
mine uranium where permeable, low-grade deposits can be mined with minimal
ground disturbance. Cobra believes that the unique geology of the Boland
prospect can re-shape the preferred process of mining MREOs and HREOs from
ionic clays.
Using historical geophysical logs, Cobra has modelled the extent of the
mineralised geological units over significant areas of the palaeochannel.
Re-assaying of historical samples supports initial geological assessments for
a scalable, low-cost sourcing of magnet and heavy rare earths.
Benefits of ISR
Cobra confirmed ionic REE metallurgical recoveries at Boland in 2023 and
recent Sonic core drilling provided greater geological detail supporting the
Company's thesis that grade concentrations are high, mineralisation is
amenable to low-cost extraction via ISR, and the discovery has exceptional
province-scale potential.
Cobra believes that the amenability of the permeable palaeochannel geology to
ISR has the potential to differentiate the Boland project from other ionic and
clay hosted REE projects, as ISR:
· Removes bulk stripping, rehandle and rehabilitation requirements
· Does not require crushing or screening to de-logulate ores
· Eliminates the need to de-slime clays from solution
· Materially reduces water consumption
· Mitigates ore beneficiation
As ISR bypasses typical mining and processing steps, the inherent costs of
recovery are typically lower than traditional mines. This is widely
demonstrated in the uranium industry, where:
· Capital costs of project construction are 10-15% of the costs
attributed to hard rock projects
· Ongoing costs of ISR production are 30-40% less than the costs
attributed to hard rock uranium mining
(1) United States Nuclear Regulatory Commisions www.nrc.gov
(http://www.nrc.gov) TradeTech - the nuclear review (October 2016)
Figure 1: Plan detailing the extent of re-analysis results, previous Cobra
drilling, pending assays and the modelled extent of the geological
stratigraphy that hosts 'Zone 3' mineralisation identified in Boland wellfield
drilling
Next Steps
Cobra's strategy to realise the value of the Boland discovery is to
systematically advance the ISR recoverability of REEs at Boland, whilst
defining grade upside and scale. The forward plan presented in Table 1
summarises the timeframes for key scopes of work for Boland.
Table 1: Forward work plan
Discussion of Results
· In March 2024, the Company announced the results of a Sonic drilling
programme, and the subsequent installation of a wellfield to advance ISR as
the preferred mining method. Narrow sampling, downhole geophysics and improved
geological detail enabled Cobra's technical team to model the extent of three
geological lithologies (zones 1-3) that host ionic REEs. Modelled mineralised
units support extensive scale where host units have been modelled across:
o The geological formation hosting zone 1 mineralisation is mapped across
~128km(2)
o The geological formation hosting zone 2 mineralisation is mapped across
~58km(2)
o The geological formation hosting zone 3 mineralisation is mapped across
~139km(2)
· Modelling was based on the downhole geophysical responses attributed
to each mineralised zone in alignment with a REPTEM survey flown in 2008 that
defines the base of the Narlaby Palaeochannel
· Downhole geophysics from historical uranium focused drilling were
digitised, interpreted and wireframes developed
· Re-analysis results support the extent of scale and define
intersections across all zones
· Mineralisation has now been defined along 11.5km of strike within the
Narlaby Palaeochannel. Further re-analysis shall look to expand and infill the
mineralisation footprint
· Mineralisation is deeper within the central regions of the
palaeochannel, and less concentrated. This is interpreted to be a result of
fluvial, river streams re-working and eroding the marine sediments that host
the ionic REEs. This supports targeting the peripheral areas of the
palaeochannels for higher grades
· Historical results will be used to inform follow up drilling as:
o Historical 2m downhole sample composites do not represent the concentrated
nature of mineralisation at permeable boundaries, resulting in poor definition
between mineralised zones. Intersections reported across zones 1 and 2 are
amalgamated
o The highly concentrated nature of zone 3 is poorly represented by 2m
sample compositing; however, elevated grades support regional scale
o The geological controls resulting in shallower mineralisation north of the
Boland wellfield are unknown and require further investigation to confirm the
historical results and test their amenability to ISR
o Variable basket compositions reflect REE mobility and are a common trait
of ionic rare earth systems, owing to the drainage nature of the palaeochannel
being different to the hydraulic drivers in typical ionic systems, the
distribution and variability of mineralisation requires follow-up drilling
Table 2: Significant intersections
Hole Id From (m) To (m) Int (m) TREO Pr(6)O(11) Nd(2)O(3) Tb(2)O(3) Dy(2)O(3) MREO % HREO%
IR 111 12.0 16.0 4.0 445 20 69 2 9 22% 18%
IR 112 0.0 12.0 12 964 42 142 4 20 22% 19%
including 0.0 6.0 6.0 1,392 58 205 6 30 21% 20%
and 20.0 22.0 2 588 29 90 2 8 22% 13%
IR 113 4.0 10.0 6 952 47 159 3 17 24% 14%
and 52.0 54.0 2 607 31 108 2 12 25% 17%
IR 114 4.0 6.0 2 2,407 152 584 7 33 32% 11%
and 16.0 18.0 2 564 29 101 2 10 25% 15%
IR 229 2.0 10.0 8 1,763 74 280 7 40 23% 21%
and 12.0 14.0 2 552 29 97 2 8 25% 13%
IR 230 12.0 16.0 4 454 20 71 2 9 22% 19%
and 46.0 50.0 4 971 49 142 2 8 21% 8%
IR 117 14.0 16.0 2 691 32 106 2 9 22% 12%
and 42.0 46.0 4 685 43 144 1 5 28% 10%
IR 118 48.0 50.0 2 1,683 33 105 2 8 9% 5%
IR 237 16.0 24.0 8.0 641 26 97 3 16 22% 27%
£600,000 Placing
Cobra has raised gross proceeds of £600,000 through the Placing of 60,000,000
new ordinary shares of 1 pence each in the capital of the Company (the
"Placing Shares") at a price of 1p per share (the "Placing Price"),
representing a discount of approximately 3% to the mid-market closing share
price on 25 April 2024.
Following the completion of the acquisition of 100% of the Wudinna Project as
announced on 22 April 2024, the Company has raised funds to advance the work
programme summarised in Table 1 above to define economic value from the Boland
REE discovery through:
· Advancing ISR - a low-cost, low-disturbance mining process that could
be integrated into existing land practices - as the preferred mining and
extraction method
· Undertaking Aircore drilling to support a maiden Mineral Resource
Estimate for ionic REEs
· Progressing metallurgical work beyond the currently funded programme
to optimise a flowsheet which will enable the company to commence a Scoping
Study on the development of the resource
Approximately 30% of the Placing was to Australian investors including certain
of the original vendors to the Company of Wudinna.
The Placing has been conducted within the currently available share
authorities.
Admission of Placing Shares
The Company has made applications to the FCA and the London Stock
Exchange in connection with the admission of the Placing Shares, which is
expected to occur at 8.00 a.m. on 2 May 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 726,559,550
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 726,559,550 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: "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 and data presented within this announcement has been compiled by
Mr Robert Blythman, a Member of the Australian Institute of
Geoscientists ("MAIG"). Mr Blythman is a Consultant to Cobra Resources
Plc and has sufficient experience, which is relevant to the style of
mineralisation, deposit type and to the activity which he is undertaking to
qualify as a Competent Person defined by the 2012 Edition of the Australasian
Code for Reporting Exploration Results, Mineral Resources and Ore Reserves
(the "JORC" Code). This includes 10 years of Mining, Resource Estimation and
Exploration relevant to the style of mineralisation.
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
Cobra is defining a unique multi-mineral resource at the Wudinna Project in
South Australia's Gawler Craton, a tier one mining and exploration
jurisdiction which hosts several world-class mines. Cobra's Wudinna tenements
totalling 1,832km(2), and other nearby tenement rights totalling 2,941km(2),
contain highly desirable and ionic rare earth mineralisation amenable to
low-cost, low impact in situ recovery mining, and critical to global
decarbonisation. Cobra's greater Wudinna tenements are also prospective for
uranium. Additionally, Cobra holds a 213km(2) exploration tenement in northern
Tasmania which is also considered highly prospective for ionic rare earth
mineralisation.
Cobra's Wudinna tenements also contain extensive orogenic gold mineralisation
and are characterised by potentially open-pitable, high-grade gold
intersections, with ready access to infrastructure. Cobra has 22 orogenic gold
targets outside of the current 279,000 Oz gold JORC Mineral Resource Estimate,
and several iron oxide copper gold (IOCG) targets.
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Appendix 1: JORC Code, 2012 Edition - Table 1
Section 1 Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling techniques · Nature and quality of sampling (eg cut channels, random chips, or · Rotary mud and aircore drilling were used to obtain 1m - 2m sample
specific specialised industry standard measurement tools appropriate to the intervals.
minerals under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting the broad · A number of core holes were drilled to validate aircore results and
meaning of sampling. estimate gamma radiation disequilibrium.
· Include reference to measures taken to ensure sample representivity · Carpentaria Exploration Company Pty Ltd conducted drilling between
and the appropriate calibration of any measurement tools or systems used. 1979 - 1984.
· Aspects of the determination of mineralisation that are Material to
the Public Report.
· In cases where 'industry standard' work has been done this would be
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m
samples from which 3 kg was pulverised to produce a 30 g charge for fire
assay'). In other cases more explanation may be required, such as where there
is coarse gold that has inherent sampling problems. Unusual commodities or
mineralisation types (eg submarine nodules) may warrant disclosure of detailed
information.
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary · All drillholes were drilled at 90 degrees (vertical) due to the
air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or flat-lying nature of mineralisation.
standard tube, depth of diamond tails, face-sampling bit or other type,
whether core is oriented and if so, by what method, etc). · NQ diameter (76mm) drill holes were used to obtain 1m down-hole
samples.
· Drillholes were wireline logged using undisclosed gamma tools.
· Core samples from twinned aircore holes were used to determine
sample representation and disequilibrium between gamma measured radiation and
actual Uranium quantities.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · Reports imply that samples obtained by aircore drilling were
results assessed. considered superior owing to circulation problems encountered with rotary mud
drilling.
· Measures taken to maximise sample recovery and ensure representative
nature of the samples. · 1m sample composites are considered to provide reasonable
representation of the style of mineralisation.
· Whether a relationship exists between sample recovery and grade and
whether sample bias may have occurred due to preferential loss/gain of · 2m samples are indicative of the lateral distribution of rare
fine/coarse material. earth grade and the approximate stratigraphic location of the rare earth
grade.
Logging · Whether core and chip samples have been geologically and · Drillhole samples were logged by a onsite geologist and
geotechnically logged to a level of detail to support appropriate Mineral correlated to downhole geophysical logs that demonstrate correlation between
Resource estimation, mining studies and metallurgical studies. lithology units and gamma peaks.
· Whether logging is qualitative or quantitative in nature. Core (or · Oxidation state and the presence of reductants were logged
costean, channel, etc) photography.
· Sample loss was recorded
· The total length and percentage of the relevant intersections logged.
· Pulps have been reviewed and correlated to logging.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · Limited information concerning subsampling techniques is
taken. available.
· If non-core, whether riffled, tube sampled, rotary split, etc and · Twinned core holes, measured disequilibrium factors and duplicate
whether sampled wet or dry. sampling imply quality control.
· For all sample types, the nature, quality and appropriateness of the
sample preparation technique.
· Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples.
· Measures taken to ensure that the sampling is representative of the
in situ material collected, including for instance results for field
duplicate/second-half sampling.
· 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 · Original historic select samples were sent to COMLABS for XRF and
laboratory procedures used and whether the technique is considered partial or AAS analysis. Sample suites were variable across submissions.
total.
· Historic results are considered semiquantitative, further
· For geophysical tools, spectrometers, handheld XRF instruments, etc, re-assays would increase the confidence of historic sample results.
the parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc. · Chip reassays were analysed via a 4 acid digest. This method is
considered a near total digest. Rare earth minerals have potential for
· Nature of quality control procedures adopted (eg standards, blanks, incomplete digestion. These minerals are not considered as potential sources
duplicates, external laboratory checks) and whether acceptable levels of of extractable mineralization in this deposit type.
accuracy (ie lack of bias) and precision have been established.
Verification of sampling and assaying · The verification of significant intersections by either independent · Significant intercepts have been reviewed by Mr Rupert Verco and
or alternative company personnel. reviewed by Mr Robert Blythman (the competent persons)
· The use of twinned holes. · Historic cuttings samples retained within the Tonsely core
library have been secured and are being re-analysed to confirm results.
· Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols.
· Discuss any adjustment to assay data.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar
and down-hole surveys), trenches, mine workings and other locations used in
Mineral Resource estimation. · Collar locations have been sourced from the SARIG publicly
available dataset.
· Specification of the grid system used.
· Drill collars were surveyed on local grids established using
· Quality and adequacy of topographic control. ensign GPS. Coordinates have been transposed to MGA94 Zone 53.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · Samples were selected to provide representative regional indicators
of geology and mineralization without a fixed spacing
· Whether the data spacing and distribution is sufficient to establish
the degree of geological and grade continuity appropriate for the Mineral · No sample compositing has been applied
Resource and Ore Reserve estimation procedure(s) and classifications applied.
· The data spacing and distribution is sufficient to establish the
· Whether sample compositing has been applied. degree of geological and grade continuity appropriate for the interpretation
of roll-front, sandstone hosted Uranium mineralisation.
· Interpretation of historic results supports the flat lying
continuous mineralisation.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · Drillholes were vertical and drilled perpendicular to the
possible structures and the extent to which this is known, considering the mineralization.
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. · The security procedures are unknown
Audits or reviews · The results of any audits or reviews of sampling techniques and data. · No independent audits have been undertaken.
· The CSIRO re-analysed mineralized intersections, actively too water
samples and validated the factors of disequilibrium being used to estimate
Uranium grade.
· Proceeding tenement holders confirmed Uranium grades.
· Cobra currently re-analysing results to confirm Uranium grades.
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 · EL6967 & 6968 are 100% held by Lady Alice Mines Pty Ltd, a Cobra
agreements or material issues with third parties such as joint ventures, Resources Plc company.
partnerships, overriding royalties, native title interests, historical sites,
wilderness or national park and environmental settings. · Native title agreements need to be gained before land access by the
department of Environment and Water can be granted.
· The security of the tenure held at the time of reporting along with
any known impediments to obtaining a licence to operate in the area.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · Carpentaria: 1979-1984 explored for Sandstone hosted Uranium.
· Mount Isa Mines: 1984-1988 explored for Sandstone hosted Uranium
· BHP: 1989-1992 explored for heavy mineral sands (HMS) and base metal
· Peko Exploration: 1991-1992
· Diamond Ventures explored for diamonds in Kimberlites during the
1990s
· Iluka: 2005-2016 explored for HMS and Uranium
· Minatour Exploration: 2000-2004 explored for Sandstone hosted Uranium
and IOCG mineralisation
· Toro Energy Limited: 2004-2008 explored for sandstone hosted Uranium
Geology · Deposit type, geological setting and style of mineralisation. · Basement Geology is dominated by Archean Sleaford and Proterozoic
Hiltaba Suite Granites.
· Granite plutons are enriched in uranium bearing minerals with
background U being ~10-20 times background.
· The Narlaby Palaeochanel and Eucla Basins overlie basement rocks
Interbedded channel sands sourced from local bedrock and Eocene age clays are
interbedded within the Palaeochannel and basin.
· Highly enrich groundwaters within the Palaeochannel suggest the
mobilization from both channel fill and regional basement for Uranium and REE.
· Uranium mineralisation is hosted in Roll-front style mineralisation
when fluids are oxidizing reduced channel sediments
· REE's are adsorbed to the contacts of reduced clay interbeds.
Drillhole Information · A summary of all information material to the understanding of the · Plans demonstrate the location of drillholes.
exploration results including a tabulation of the following information for
all Material drill holes: · Coordinates can be publicly accesses through the South Australian
SARIG portal.
o easting and northing of the drill hole collar
· No relevant material has been excluded from this release.
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 · eU3O8 grades have been calculated using a disequilibrium factor of
results and longer lengths of low grade results, the procedure used for such 1.8
aggregation should be stated and some typical examples of such aggregations
should be shown in detail.
· The assumptions used for any reporting of metal equivalent values
should be clearly stated.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · Holes are drilled vertically. Reported intersections reflect true
Exploration Results. width.
· 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').
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
locations and appropriate sectional views.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · All drillhole locations have been shown on plans
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misIeading reporting of Exploration
Results.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · Reported results reflect publicly available information.
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.
Further work · The nature and scale of planned further work (eg tests for lateral · Re-analysis of historical drill samples is underway. Samples shall be
extensions or depth extensions or large-scale step-out drilling). analysed for REE and Uranium to confirm historical results.
· Diagrams clearly highlighting the areas of possible extensions, · Previous TEM surveys are being re-interpreted to improve
including the main geological interpretations and future drilling areas, Palaeochannel interpretation and to identify potential pathways of fluid
provided this information is not commercially sensitive. oxidation.
· Ground water sampling planned.
· Digitization of downhole wireline logs to re-interpret mineralized
roll-fronts.
Prospect Hole Number Grid Northing Easting Elevation
Boland IR 111 GDA94 / MGA zone 53 6369173 532029 105
Boland IR 112 GDA94 / MGA zone 53 6369173 533029 100
Boland IR 113 GDA94 / MGA zone 53 6369173 534004 105
Boland IR 114 GDA94 / MGA zone 53 6367673 534629 105
Boland IR 115 GDA94 / MGA zone 53 6365973 534880 103
Boland IR 116 GDA94 / MGA zone 53 6364173 534404 105
Boland IR 117 GDA94 / MGA zone 53 6365173 534704 105
Boland IR 118 GDA94 / MGA zone 53 6364173 533129 114
Boland IR 119 GDA94 / MGA zone 53 6364573 532130 120
Boland IR 228 GDA94 / MGA zone 53 6372473 531729 112
Boland IR 229 GDA94 / MGA zone 53 6370873 533029 104
Boland IR 230 GDA94 / MGA zone 53 6370873 532429 102
Boland IR 232 GDA94 / MGA zone 53 6365773 532729 114
Boland IR 234 GDA94 / MGA zone 53 6365573 533629 115
Boland IR 235 GDA94 / MGA zone 53 6365273 534229 107
Boland IR 237 GDA94 / MGA zone 53 6361573 535129 117
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