REG - Cobra Resources PLC - Completion of 100% Wudinna Project Acquisition

Cobra ResourcesAnnouncement

22/04/2024 07:15

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RNS Number : 4779L  Cobra Resources PLC  22 April 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
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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.

 

22 April 2024

 

Cobra Resources plc

("Cobra" or the "Company")

 

Completion of 100% Wudinna Project Acquisition

 

Catalyst for Cobra to evaluate alternative opportunities for gold and uranium
assets

 

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 that the conditions precedent to the Wudinna
Sale Agreement (the "Agreement") with Andromeda Metals (ASX: ADN) for Cobra to
acquire the remaining 25% of Wudinna have been satisfied, entitling Cobra to
100% ownership of Wudinna.

 

The terms of the Agreement are covered in the Company's Prospectus published
on 16 January 2024, which is available to view here:
https://cobraplc.com/investors/#corporate-documents
(https://cobraplc.com/investors/#corporate-documents) .

 

Highlights

 

100% project ownership

 

·    Subject only to Departmental procedures and Ministerial approvals,
Cobra has become the 100% owner of Wudinna, which hosts the Boland ionic rare
earth ("REE") discovery, the Wudinna Gold JORC Resource, and a number of
Uranium occurrences

 

·    Finalising 100% project acquisition enhances optionality, with the
Company evaluating opportunities in light of the strong gold and uranium
markets

 

Company priority to define economics of ionic REEs by In Situ Recovery (ISR)
mining

 

·    Boland's ionic REEs are uniquely hosted within permeable geology,
amenable to low-cost, low disturbance mining method

 

·    Cobra's board and management are experienced in ISR from their prior
association with South Australia's two operating ISR uranium mines

 

·    The Company believes it can treat clays via ISR to achieve lower
capital and operational costs than typical ionic clay projects

 

·    Work programme designed to demonstrate the scale of ionic REE
mineralisation and the cost advantage of mining, processing and precipitation
of a mixed REE carbonate through ISR extraction

 

Results testing scale, grade and ISR recovery forthcoming

 

·    Results from 233 samples obtained from historical drilling are
imminent, selected to the modelled scale of Boland mineralisation which
currently stands at 139km(2)

 

·    A further 869 samples have been submitted for re-assay to further
evaluate the scale of Boland mineralisation and its potential to extend across
Cobra's prospective 2,000km(2) of palaeochannel land tenure

 

·    Australia's Nuclear, Scientific and Technology Organisation ("ANSTO")
is preparing a column leach trial on core recovered from the installed
wellfield at Boland to test recovery potential under ISR conditions - results
expected in June

 

 

Rupert Verco, CEO of Cobra, commented:

 

"It is pleasing to complete the Agreement and obtain 100% ownership of
Wudinna, which is an exceptionally prospective landholding containing gold
resources, uranium mineralisation and, of course, the transformational ionic
rare earths discovery. Given the strong gold and uranium markets, we are
evaluating how to best progress our existing gold resource and highly
prospective uranium assets whilst we focus on advancing the Boland rare earths
discovery.

 

We expect to be able to bring further rare earth re-assay results to the
market imminently which test Cobra's modelled scale, followed by ISR column
leach results. These workflows are important in demonstrating the economic
significance of ISR to ionic rare earth mining.

 

ISR mining has changed the supply of uranium over the last 30 years - we hope
to emulate this in the magnet and heavy rare earth markets."

 

About The Wudinna Project

 

Wudinna is located within the Gawler Craton, South Australia, a tier 1 mining
and exploration jurisdiction which hosts several world class mines and is a
world leader in ISR.  Wudinna totals 1,832 km(2) and contains ionic rare
earths hosted within palaeochannels where the geology is amenable to low cost
ISR mining. The project also contains a shallow 279,000 Oz JORC Gold Resource
and a number of uranium prospects where previous explorers have identified
sandstone-hosted uranium.

 

Cobra is progressing the ISR potential of ionic rare earths from permeable
geology, where metallurgical analysis has yielded high recoveries of magnet
rare earths ("MREO") and heavy rare earths ("HREO") 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 and the economic benefits are demonstrated by materially
lower capital (~10-20% of hard rock mines) and operational costs (30-40% less
than conventional mines)(1). 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 MREOs and HREOs.

 

(1) United States Nuclear Regulatory Commisions www.nrc.gov
(http://www.nrc.gov) TradeTech - the nuclear review (October 2016)

 

 

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.

 

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 1,832 km(2), and other nearby tenement rights totalling 2,941 km(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 213 km(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.

 

Follow us on social media:

 

LinkedIn: https://www.linkedin.com/company/cobraresourcesplc
(https://www.linkedin.com/company/cobraresourcesplc)

Twitter: https://twitter.com/Cobra_Resources
(https://twitter.com/Cobra_Resources)

 

Subscribe to our news alert service: https://cobraplc.com/news/
(https://cobraplc.com/news/)

 

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