REG - Cobra Resources PLC - Drilling Defines REE Resource Extension Potential
12/06/2023 07:00
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RNS Number : 3147C Cobra Resources PLC 12 June 2023
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12 June 2023
Cobra Resources plc
("Cobra" or the "Company")
Drilling Defines REE Resource Extension Potential
Cobra, a gold, rare earth and IOCG exploration company focused on the Wudinna
Project in South Australia, announces rare earth results from Reverse
Circulation ("RC") and Aircore ("AC") drilling, which will support further
Rare Earth Elements ("REE") resource growth at the Company's unique and
complementary gold and REE resource.
Drilling results demonstrate significant potential for resource extensions in
multiple directions, with intervals up to 25m and Total Rare Earth Oxides
("TREO") grades of up to 3,568 ppm. Results will be incorporated in a rare
earth mineral resource update, which is scheduled to be published once the
update to the existing gold Mineral Resource Estimate ("MRE") has been
completed, expected in the second half of the year.
Highlights:
· CBAC0134: 18m at 1,123 ppm TREO from 21m, where the Magnet Rare Earth
Oxide ("MREO") equates to 21% of the TREO, including 3m at 3,568 ppm TREO,
where the MREO equates to 21%
· CBAC0109: 25m at 739 ppm TREO from 12m, where the MREO equates to
26%, including 9m at 1,187 ppm TREO, where the MREO equates to 28%
· CBAC0114: 21m at 736 ppm TREO from 15m, where the MREO equates to
24%, including 3m at 1,298 ppm TREO, where the MREO equates to 22%
· CBAC0147: 9m at 977 ppm TREO from 12m, where the MREO equates to 19%,
including 3m at 1,719 ppm TREO, where the MREO equates to 19%
· CBAC0102: 4m at 831 ppm TREO from 14m, where the MREO equates to 28%
· CBAC0135: 3m at 1823 ppm TREO from 18m, where the MREO equates to 22%
· At the Bradman prospect, rare earth enrichment occurs directly in
contact with palaeo-channel sediments, where the presence of reduced organic
material has the potential to increase the ionic component of mineralisation.
Highlight intersections include:
o CBAC0158: 15m at 946 ppm TREO from 33m, where the MREO equates to 24%,
including 3m at 1,687 ppm TREO, where the MREO equates to 22%
o CBAC0156: 15m at 825 ppm TREO from 45m, where the MREO equates to 25%,
including 3m at 1,417 ppm TREO, where the MREO equates to 25%
o CBAC0149: 9m at 897 ppm TREO from 54m, where the MREO equates to 23%,
including 6m at 1,076 ppm TREO, where the MREO equates to 23%
· These results represent 43 of 95 drilled AC holes. Further results
from resource expansion drilling and testing of palaeo-channel clays at the
Boland prospect remain outstanding
· Selected samples from this drilling will be used to further advance
REE metallurgical studies aimed at defining a viable flow sheet for extraction
Rupert Verco, CEO of Cobra, commented:
"These drilling results confirm the resource growth potential of our unique
rare earth resource and will likely inform a significant resource update,
establishing Wudinna as a potential tier-1 rare earth project whose unique
proximity to gold mineralisation has the potential to contribute favourably to
economics.
"Whilst we eagerly await further drilling results, our focus turns to
metallurgical advancement where our progress in mineralogical and ore body
characterisation has provided the essential information required to advance
recoveries, targeting low cost and environmentally considerate processes.
"The results also come at a time when the necessity of critical minerals has
been further highlighted through the signing of the Climate, Critical Minerals
and Clean Energy Transformation Compact between Australia and the US. It is
our ambition to advance the project to capitalise on the opportunities that
shall arise from this strategic partnership."
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
Shard Capital Partners LLP (Joint Broker)
Erik Woolgar +44 (0)20 7186 9952
Damon Heath
Vigo Consulting (Financial Public Relations) +44 (0)20 7390 0234
Ben Simons
Charlie Neish
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 3,261 km(2), 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 211,000 Oz gold JORC Mineral Resource Estimate. In 2021, Cobra
discovered rare earth mineralisation proximal to and above the gold
mineralisation which has been demonstrated to be regionally scalable. In 2023,
Cobra published a maiden rare earth JORC Mineral Resource Estimate of 20.9 Mt
at 658 ppm Total Rare Earth Oxides enabling a strategic baseline to advance an
economically beneficial combination of gold and rare earth resources.
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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 ("FAusIMM"). Mr
Verco an employee of Cobra Resources Plc has more than 16 years relevant
industry 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 as defined in the 2012 Edition of the Australasian Code for Reporting
Exploration Results, Mineral Resources and Ore Reserves (the "JORC" Code).
This includes 11 years of Mining, Resource Estimation and Exploration
Information in this announcement relates to exploration results that have been
reported in the following announcements:
· "Wudinna Project Update - Initial Gold and Rare Earth Results", dated
14 December 2021
· "Wudinna Project Update - Northern Drillholes at Clarke Intersect
Additional Gold Mineralisation, Additional Rare Earth Intersections Directly
Above Gold Zones", dated 7 February 2022
· "Wudinna Project Update - Re-Analysis Defines Large Rare Earth
Mineralisation Footprint Above Baggy Green and Clarke Gold Mineralisation",
dated 4 May 2022
· "Wudinna Project Update - Aircore Drilling Yields Exceptional Gold
and Rare Earth Results at Clarke" dated 16 August 2022
· "Wudinna Project Update - Additional High-Grade Rare Earths Defined
Across Regional Targets" dated 12 September 2022
· "Wudinna Project Update - Exceptional Rare Earth Scale Potential at
Thompson Prospect Increases REE Footprint from 4 km(2) to 22.5 km(2)" dated
26 September 2022
· "Wudinna Project Update - Maiden Rare Earth Resource Estimate -
Unique and Unconstrained" dated 9 January 2023
· "Wudinna Project Update - RC Drilling Results - Expanding Gold and
Rare Earth Occurrence
at Clarke Prospect Position Cobra for Dual Resource Expansion" dated 17
January 2023
· "Wudinna Project Update - Stage 3 Earn-In to Obtain 75% of the
Wudinna Project Achieved" dated 24 April 2023
· "Wudinna Project Update - Initial RC Drilling Results Underpin Gold
Resource Growth Potential" dated 9 May 2023
Definitions
REO - Rare Earth Oxides
TREO - Total Rare Earth Oxides plus yttrium
MREO - Magnet Rare Earth Oxide (Nd(2)O(3) + Pr(6)O(11) + Dy(2)O(3) +
Tb(2)O(3))
MRE - Mineral Resource Estimate
Further Information Regarding the AC Drilling Programme
A total of 95 holes for 3,950m were drilled across eight prospects, including:
· Clarke North, where a further 1 km(2) of REE mineralisation has been
defined through the following intersections:
o CBAC0109: 25m at 739 ppm TREO from 12m, where the MREO equates to 26%,
including 9m at 1187 ppm TREO, where the MREO equates to 28%
o CBAC0108: 10m at 710 ppm TREO from 27m, where the MREO equates to 22%
o CBAC0105: 12m at 550 ppm TREO from 18m, where the MREO equates to 21%
o CBAC0105: 12m at 550 ppm TREO from 18m, where the MREO equates to 21%
o CBAC0104: 6m at 719 ppm TREO from 16m, where the MREO equates to 17%
o CBAC0103: 6m at 602 ppm TREO from 18m, where the MREO equates to 22% and
2m at 683 ppm TREO from 40m, where the MREO equates to 23%
· Clarke South, where results from 8 of 11 holes received have
demonstrated further REE mineralisation beyond the southern extent of Clarke
gold mineralisation and the REE resource extent with the following
intersections:
o CBAC0112: 6m at 621 ppm TREO from 24m, where the MREO equates to 23%
o CBAC0113: 15m at 607 ppm TREO from 18m, where the MREO equates to 23%,
including 3m at 1146 ppm TREO from 18m, where the MREO equates to 24%
o CBAC0114: 21m at 736 ppm TREO from 15m, where the MREO equates to 24%,
including 3m at 1298 ppm TREO from 33m, where the MREO equates to 22%
o CBAC0115: 3m at 674 ppm TREO from 21m, where the MREO equates to 29%
o CBAC0116: 3m at 634 ppm TREO from 21m, where the MREO equates to 26%, and
3m at 609 ppm TREO from 36m, where the MREO equates to 22%
o CBAC0137: 12m at 629 ppm TREO from 15m, where the MREO equates to 20%
· Grace, where 23 exploration holes were drilled to test structures
similar to gold and REE enriched structures at the Clarke prospect. Results
from 11 holes have been received that include:
o CBAC0146: 3m at 544 ppm TREO from 18m, where the MREO equates to 23%
o CBAC0141: 9m at 756 ppm TREO from 21m, where the MREO equates to 21%
o CBAC0139: 13m at 698 ppm TREO from 24m, where the MREO equates to 21%
· Baggy Green West, where results from two of six holes drilled tested
demagnetised zones that demonstrate increased saprolite horizons prospective
for REE resource extensions, as supported by:
o CBAC0135: 3m at 1,823 ppm TREO from 18m, where the MREO equates to 22%
o CBAC0134: 18m at 1,123 ppm TREO from 21m, where the MREO equates to 21%,
including 3m at 3,568 ppm TREO from 24m, where the MREO equates to 21%
· Bradman, where 11 holes have verified the electromagnetic
interpretation of an extensive palaeo-drainage system. Here, the channel
sediments are more oxidised and clay intervals limited, and REE mineralisation
is enriched on the contact to the palaeo-sediments, where the following
intersections are present:
o CBAC0147: 9m at 977 ppm TREO from 12m, where the MREO equates to 19%,
including 3m at 1,719 ppm TREO from 12m, where the MREO equates to 19%
o CBAC0149: 9m at 897 ppm TREO from 54m, where the MREO equates to 23%,
including 6m at 1,076 ppm TREO from 54m, where the MREO equates to 23%
o CBAC0153: 6m at 821 ppm TREO from 27m, where the MREO equates to 19%
o CBAC0156: 15m at 825 ppm TREO from 45m, where the MREO equates to 25%,
including 3m at 1417 ppm TREO from 48m, where the MREO equates to 25%
o CBAC0158: 15m at 946 ppm TREO from 33m, where the MREO equates to 24%,
including 3m at 1687 ppm TREO from 33m, where the MREO equates to 22%
o CBAC0159: 6m at 637 ppm TREO from 54m, where the MREO equates to 23%
· Boland, where 20 holes validate the presence of significant
palaeo-drainage system where smectite clays occur within 5-15m interbeds of
oxidised and reduced channel sands. The presence of abundant lignite (organic
matter) is a positive sign for chemical reduction and subsequent adsorption of
REEs. Results are anticipated over the next two to four weeks
· Barns East, where 10 holes were drilled to test and infill previous
drilling, intersecting shallow gold mineralisation that lies outside of the
existing Barns MRE, where historical intersections include:
o 7m at 2.23 g/t gold from 52m, including 1m at 8.3 g/t gold from 57m
o 6m at 1.35 g/t gold from 64m
o 7m at 1.35 g/t gold from 64m
o 5m at 1.00 g/t gold from 10m
· AC drilling failed to penetrate a silicious quartzite unit and
intersect basement. Regardless, this drilling has defined an anomalous zone of
North-South gold mineralisation through the following anomalous gold
mineralisation in the upper saprolite:
o CBAC0092 intersected 2m at 0.19 g/t gold from 8m and 2m at 1 g/t from 10m
o CBAC0095 intersected 2m at 0.12 g/t gold from 52m
o CBAC0097 intersected 2m at 0.5 g/t gold from 26m
o CBAC0098 intersected 2m at 0.48 g/t gold from 38m and 2m at 0.24 g/t from
50m
o CBAC0101 intersected 2m at 0.23 g/t gold from 8m
Targeted Advancement of REE Metallurgy
Summarised below is the work that has been completed to date, along with key
strategic tests that will be explored in ongoing testwork:
Figure 1: Overview of resource extension targeted AC drilling results at the
Clarke and Baggy Green prospects
Figure 2: Overview of AC drilling results at the Bradman prospect
Table 1: Significant intersections from 2023 AC drilling
Prospect BHID From (m) To (m) Int (m) TREO MREO Nd(2)O(3) Pr(6)O(11) Dy(2)O(3) Tb(2)O(3)
(ppm) (ppm) (ppm) (ppm) (ppm) (ppm)
Clarke North CBAC0102 14 18 4 831 232 170 42 17 3.3
Clarke North CBAC0103 18 24 6 602 135 96 25 12 2.1
Clarke North CBAC0103 40 42 2 683 159 110 25 20 3.4
Clarke North CBAC0104 16 22 6 719 122 86 25 9 1.6
Clarke North CBAC0105 18 30 12 550 118 83 23 10 1.7
Clarke North CBAC0108 27 37 10 710 157 108 28 18 2.9
Clarke North CBAC0109 12 37 25 739 191 134 39 15 2.6
including 15 24 9 1187 329 231 68 26 4.6
Clarke South CBAC0112 24 30 6 621 144 103 27 12 1.9
Clarke South CBAC0113 18 33 15 607 141 100 29 10 1.7
including 18 21 3 1146 276 201 58 14 2.6
Clarke South CBAC0114 15 36 21 736 173 123 37 12 2.0
including 33 36 3 1298 288 201 55 28 4.5
Clarke South CBAC0115 21 24 3 674 195 139 41 13 2.3
Clarke South CBAC0116 21 24 3 634 162 114 39 7 1.4
and 36 39 3 609 134 95 28 10 1.7
Baggy Green W CBAC0134 21 39 18 1123 238 164 45 25 3.8
including 24 27 3 3568 759 538 153 58 9.6
Baggy Green W CBAC0135 18 21 3 1823 409 292 86 27 4.6
Clarke South CBAC0137 15 27 12 629 127 88 26 11 1.8
Grace CBAC0139 24 37 13 698 148 100 29 17 2.5
Grace CBAC0141 21 30 9 756 155 105 31 17 2.6
Grace CBAC0146 18 21 3 544 124 90 25 8 1.7
Bradman CBAC0147 12 21 9 977 184 130 40 12 2.2
including 12 15 3 1719 326 231 70 21 4.0
Bradman CBAC0149 54 63 9 897 202 137 36 25 4.0
including 54 60 6 1076 251 170 45 31 5.1
Bradman CBAC0153 27 33 6 821 157 111 33 12 2.2
Bradman CBAC0153 27 33 6 821 157 111 33 12 2.2
Bradman CBAC0156 45 60 15 825 205 146 41 15 2.5
including 48 51 3 1417 350 254 66 26 4.4
Bradman CBAC0158 33 48 15 946 224 154 40 26 4.1
including 33 36 3 1687 365 257 64 38 6.1
Bradman CBAC0159 54 60 6 637 144 102 25 15 2.3
Clarke CBRC0079 16 20 4 697 171 123 33 12 2.3
Location and Land Tenure
The Wudinna Project is located on the northern Eyre Peninsula, within South
Australia, a tier 1 mining jurisdiction. The defined dual Gold and REE MRE
occurs within EL6131 (Corrobinnie) and lies within the Pinkawillinie
Conservation Park (dual proclamation land). Gold Resources extend across
EL5953 (Minnipa) and EL6131. The tenements are held by Peninsula Resources, a
subsidiary of Andromeda Metals. In April 2023, the Company announced its 75%
earn-in had been recognised by Andromeda Metals under the terms of the Wudinna
Heads of Agreement.
Figure 3: Locality plan
Geology and Nature of the REE Mineralisation
The gold and REE deposits at the Wudinna Project are considered to be related
to the structurally controlled basement weathering of epidote-pyrite
alteration related to the 1590 Ma Hiltaba/GRV tectonothermal event of the
Gawler Craton. Gold and REE mineralisation have a spatial association with
mafic intrusions/granodiorite alteration and are associated with metasomatic
alteration of host rocks. Epidote alteration associated with gold
mineralisation is REE enriched and believed to be the primary source.
The REE mineralisation is regionally extensive in weathered (saprolite and
saprock) zones developed on basement rocks. The nature of controlling
structures that act as conduits for gold mineralisation are also thought to
act as catalysts for the secondary processes that promote weathering and
subsequent mobilisation of REEs to the saprolite and saprock.
The following simplified model is proposed for clay-hosted REEs and the Clarke
and Baggy Green prospects:
· Gold and sulphide mineralisation is directly associated with Hiltaba
Suite volcanics (~1590-1575 Ma)
· WNW redial shears under NS compression (craton emplacement) act as
dilatational conduits through Kimbian and Sleaford age granitoids
· Hiltaba suite mafics are enriched in light REEs
· Gold and sulphide mineralisation forms along sheeted granitoid "dome"
joints, bound within shear zones
· Sericite and epidote alteration halos form peripheral to gold
mineralisation
· Epidote alteration is enriched in REEs providing an enriched source
· Supergene enrichment of gold occurs at the base of oxidation, where
the weathering of primary sulphides generates acidic conditions
· Primary REE phases are weathered to secondary REE phases through
prolonged weathering
· Acidic conditions generated by the weathering of sulphides
re-mobilises REEs
· Near redox boundaries (pH 6-7) a greater component of REE is absorbed
to clay particles
· Colloidal phases occur as conditions become alkaline
Figure 4: Proposed geological model for gold and REE mineralisation at the
Clarke and Baggy Green prospects
Table 2: Drillhole survey details
HOLE ID EASTING NORTHING ELEVATION DIP AZI EOH
CBAC0102 545831 6365699 112.1 -90 0 20.4
CBAC0103 546041 6365847 109.6 -90 0 47
CBAC0104 545749 6365358 112.7 -90 0 22
CBAC0105 545954 6365495 111.4 -90 0 34
CBAC0106 546174 6365653 110.6 -90 0 45
CBAC0107 546092 6365310 111.0 -90 0 41
CBAC0108 546301 6365444 110.9 -90 0 39
CBAC0109 545980 6364922 113.6 -90 0 37
CBAC0110 546144 6365037 113.0 -90 0 42
CBAC0111 546308 6365152 111.2 -90 0 39
CBAC0112 546471 6365266 110.7 -90 0 38
CBAC0113 548079 6364675 115.5 -90 0 39
CBAC0114 547879 6364675 118.5 -90 0 39
CBAC0115 547479 6364675 115.7 -90 0 41
CBAC0116 547679 6364675 115.4 -90 0 41
CBAC0117 547527 6364491 120.1 -90 0 43
CBAC0134 546238 6363072 134.7 -90 0 41
CBAC0135 546004 6363058 135.7 -90 0 24
CBAC0136 548120 6364896 114.4 -90 0 25
CBAC0137 548336 6364915 113.1 -90 0 31
CBAC0138 549327 6364906 117.1 -90 0 36
CBAC0139 549319 6364687 117.4 -90 0 37
CBAC0140 548888 6364962 115.3 -90 0 19
CBAC0141 549319 6364025 118.5 -90 0 32
CBAC0142 549314 6363738 115.6 -90 0 36
CBAC0143 549308 6363379 115.1 -90 0 30
CBAC0144 549317 6365195 115.6 -90 0 49
CBAC0145 549322 6365550 116.2 -90 0 39
CBAC0146 549324 6365828 120.3 -90 0 30
CBAC0147 548611 6364942 115.2 -90 0 40
CBAC0148 549314 6364409 116.4 -90 0 30
CBAC0149 540383 6364320 120.3 -90 0 69
CBAC0150 537409 6364599 100.4 -90 0 15
CBAC0151 537945 6364815 102.5 -90 0 12
CBAC0152 537628 6365027 111.9 -90 0 30
CBAC0153 537896 6365443 110.0 -90 0 50
CBAC0154 538849 6364807 120.2 -90 0 27
CBAC0155 539747 6364744 118.6 -90 0 33
CBAC0156 539112 6365169 118.0 -90 0 66
CBAC0157 538477 6365593 117.7 -90 0 24
CBAC0158 538362 6366150 121.3 -90 0 51
CBAC0159 538997 6365726 122.4 -90 0 60
CBRC0079 546734.78 6365441.266 111.3 -65 240 132
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 Pre 2021
specific specialised industry standard measurement tools appropriate to the
minerals under investigation, such as down hole gamma sondes, or handheld XRF · Historic RC and RAB drilling methods have been employed at Clarke
instruments, etc). These examples should not be taken as limiting the broad and Baggy Green Prospects since 2000.
meaning of sampling.
· Pulp samples from pre-Cobra Resources' drilling were collected
· Include reference to measures taken to ensure sample representivity with intervals of 1-6 m. Samples were riffle split if dry or sub
and the appropriate calibration of any measurement tools or systems used. split using a trowel if wet.
· Aspects of the determination of mineralisation that are Material to · Pulp samples were obtained from Challenger geological services
the Public Report. using a combination of logging and geochemical selection criteria. Samples
pulled from storage were re-pulverised at the laboratory prior to further
· In cases where 'industry standard' work has been done this would be analysis.
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 2021 - 2022
assay'). In other cases more explanation may be required, such as where there
is coarse gold that has inherent sampling problems. Unusual commodities or · Sampling during Cobra Resources 2022 aircore ("AC") drilling
mineralisation types (eg submarine nodules) may warrant disclosure of detailed programme at all Prospects were obtained through AC drilling methods.
information.
· 2 m samples were collected in 20l buckets via a rig mounted
cyclone. An aluminum scoop was used to collect a 2-4 kg sub sample from each
bucket. Samples were taken from the point of collar, but only samples from the
commencement of saprolite were selected for analysis.
· Samples submitted to the Genalysis Intertek Laboratories,
Adelaide and pulverised to produce the 25g fire assay charge and 4 acid digest
sample.
· A summary of previous RC drilling at the Wudinna Project is
outlined in the Cobra Resources' RNS number 7923A from 7 February 2022.
2023
RC
· Samples were collected via a Metzke cone splitter mounted to the
cyclone. 1m samples were managed through chute and butterfly valve to produce
a 2-4 kg sample. Samples were taken from the point of collar, but only samples
from the commencement of saprolite were selected for analysis.
· Samples submitted to Bureau Veritas Laboratories, Adelaide, and
pulverised to produce the 50 g fire assay charge and 4 acid digest sample.
AC
· A combination of 2m and 3 m samples were collected in green bags
via a rig mounted cyclone. An PVC spear was used to collect a 2-4 kg sub
sample from each green bag. Samples were taken from the point of collar.
· Samples submitted to Bureau Veritas Laboratories, Adelaide, and
pulverised to produce the 50 g fire assay charge and 4 acid digest sample.
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary Pre 2021
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, · Drill methods include AC, RH and RAB in unconsolidated regolith
whether core is oriented and if so, by what method, etc). and aircore hammer in hard rock. Some shallow RC holes have been drilled in
place of AC and RAB, a single diamond drillhole has been incorporated in the
estimate.
2021- 2022
· Drilling completed by McLeod Drilling Pty Ltd using 75.7 mm NQ
air core drilling techniques from an ALMET Aircore rig mounted on a Toyota
Landcruiser 6x6 and a 200psi, 400cfm Sullair compressor.
· Slimline RC drilling was completed by Wuzdrill pty limited and
Indicator drilling services Pty Ltd using a 400D and Mantis C60R drill rigs
using a 4" hammer and 78mm drill rods.
2023
· Drilling completed by Bullion Drilling Pty Ltd using 5 ¾"
reverse circulation drilling techniques from a Schramm T685WS rig with an
auxiliary compressor.
· Drilling completed by McLeod Drilling Pty Ltd using 75.7 mm NQ
air core drilling techniques from an ALMET Aircore rig mounted on a Toyota
Landcruiser 6x6 and a 200psi, 400cfm Sullair compressor.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · Sample recovery was generally good.All samples were recorded for
results assessed. sample type, quality and contamination potential and entered within a sample
log.
· Measures taken to maximise sample recovery and ensure representative
nature of the samples. · In general, sample recoveries were good with 10 kg for each 1 m
interval being recovered from AC drilling.
· Whether a relationship exists between sample recovery and grade and
whether sample bias may have occurred due to preferential loss/gain of · No relationships between sample recovery and grade have been
fine/coarse material. 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.
Logging · Whether core and chip samples have been geologically and · All drill samples were logged by an experienced geologist at the
geotechnically logged to a level of detail to support appropriate Mineral time of drilling. Lithology, colour, weathering and moisture were documented.
Resource estimation, mining studies and metallurgical studies.
· Logging is generally qualitative in nature.
· Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography. · All drill metres have been geologically logged on sample
intervals (1-3 m).
· The total length and percentage of the relevant intersections logged.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core Pre-2021
taken.
· Samples from AC, RAB and "bedrock" RC holes have been collected
· If non-core, whether riffled, tube sampled, rotary split, etc and initially as 6 m composites followed by 1 m re-splits. Many of the 1 m
whether sampled wet or dry. re-splits have been collected by riffle splitting.
· For all sample types, the nature, quality and appropriateness of the · RC samples have been collected by riffle splitting if dry, or by
sample preparation technique. trowel if wet
· Quality control procedures adopted for all sub-sampling stages to · Pulverised samples have been routinely checked for size after
maximise representivity of samples. pulverising
· Measures taken to ensure that the sampling is representative of the · Pulp samples were re- pulverised after storage to re-homogenise
in situ material collected, including for instance results for field samples prior to analysis.
duplicate/second-half sampling.
2021-onward
· Whether sample sizes are appropriate to the grain size of the
material being sampled. · The use of an aluminum scoop or PVC spear to collect the required
2-4 kg of sub-sample from each AC sample length controlled the sample volume
submitted to the laboratory.
· Additional sub-sampling was performed through the preparation and
processing of samples according to the lab internal protocols.
· Duplicate AC samples were collected from the green bags using an
aluminium scoop or PVC spear at a 1 in 25 sample frequency.
· Sample sizes were appropriate for the material being sampled.
· Assessment of duplicate results indicated this sub-sample method
provided good repeatability for rare earth elements.
· RC drill samples were sub-sampled using a cyclone rig mounted
splitter with recoveries monitored using a field spring scale.
· Manual re-splitting of RC samples through a riffle splitter was
undertaken where sample sizes exceeded 4 kg.
· RC field duplicate samples were taken nominally every 1 in 25
samples. These samples showed good repeatability for REE.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · Samples were submitted to Bureau Veritas Laboratories, Adelaide
laboratory procedures used and whether the technique is considered partial or for preparation and analysis.
total.
· Multi element geochemistry were digested by four acid ICP-MS and
· For geophysical tools, spectrometers, handheld XRF instruments, etc, analysed for Ag, Ce, Cu, Dy, Er, Eu, Gd, Ho, La, Lu, Mg, Na, Nd, P, Pr, Sc,
the parameters used in determining the analysis including instrument make and Sm, Tb, Th, Tm, U, Y and Yb.
model, reading times, calibrations factors applied and their derivation, etc.
· Field gold blanks and rare earth standards were submitted at a
· Nature of quality control procedures adopted (eg standards, blanks, frequency of 1 in 25 samples.
duplicates, external laboratory checks) and whether acceptable levels of
accuracy (ie lack of bias) and precision have been established. · Field duplicate samples were submitted at a frequency of 1 in 25
samples
· Reported assays are to acceptable levels of accuracy and
precision.
· Internal laboratory blanks, standards and repeats for rare earths
indicated acceptable assay accuracy.
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.
· Significant intercepts have been prepared by Mr Rupert Verco and
reviewed by Mr Robert Blythman.
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.
· The quality and accuracy of the topographic control is considered
sufficient for the Mineral Resource estimation and classification applied.
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
· Drillhole spacing does not introduce any sample bias.
· The data spacing and distribution is sufficient to establish the
degree of geological and grade continuity appropriate for interpretation of
the REE mineralised horizon and the classification applied.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · RC drillholes have been drilled between -60 and -75 degrees at
possible structures and the extent to which this is known, considering the orientations interpreted to appropriately intersect gold mineralisation
deposit type.
· Gold results are not presented as true width but are not considered
· If the relationship between the drilling orientation and the to present any down-dip bias.
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. Pre 2021
· Company staff collected or supervised the collection of all
laboratory samples. Samples were transported by a local freight contractor
· No suspicion of historic samples being tampered with at any stage.
· Pulp samples were collected from Challenger Geological Services and
submitted to Intertek Genalysis by Cobra Resources' employees.
2021-onward
· 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.
· 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 relevant Native Title
party.
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.
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 REDOX 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.
· The conditions within the interpreted Palaeo system are considered
supportive of ionic REE mineralisation.
Drillhole Information · A summary of all information material to the understanding of the · Exploration results are not being reported as part of the Mineral
exploration results including a tabulation of the following information for Resource area.
all Material drill holes:
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)
· 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
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · Preliminary results support unbiased testing of mineralised
Exploration Results. structures.
· If the geometry of the mineralisation with respect to the drill hole · Previous holes have been drilled in several orientations due to the
angle is known, its nature should be reported. unknown nature of mineralisation.
· If it is not known and only the down hole lengths are reported, there · Most intercepts are vertical and reflect true width intercepts.
should be a clear statement to this effect (eg 'down hole length, true width
not known'). · Exploration results are not being reported for the Mineral Resource
area.
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, metallurgical testing and detailed gold intersections.
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 · Infill and extensional drilling aimed at growing the Mineral Resource
extensions or depth extensions or large-scale step-out drilling). and converting Inferred Resources to Indicated Resources is planned.
· 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 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)
· 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
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').
· Preliminary results support unbiased testing of mineralised
structures.
· Previous holes have been drilled in several orientations due to the
unknown nature of mineralisation.
· Most intercepts 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, metallurgical testing and detailed gold intersections.
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.
· Infill and extensional drilling aimed at growing the Mineral Resource
and converting Inferred Resources to Indicated Resources is planned.
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