REG - Cobra Resources PLC - Exploration Update - Boland Project Advancement

Cobra ResourcesAnnouncement

23/06/2025 07:00

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RNS Number : 8416N  Cobra Resources PLC  23 June 2025

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23 June 2025

 

Cobra Resources plc

("Cobra" or the "Company")

 

Exploration Update - Boland Project Advancement

 

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 Heavy Rare Earth Element ("HREE") discovery at its Boland
Project ("Boland") in South Australia, is pleased to provide an update on its
exploration activities aimed at advancing Boland to an economic scoping study.
Boland is a unique, palaeochannel hosted ionic REE discovery whose geology
contains high permeability, supporting low-cost, low-disturbance In Situ
Recovery ("ISR") mining.

 

Cobra's approach has been to unlock the considerable commercial and
environmental benefits associated with recovering in-demand HREEs dysprosium
and terbium through ISR. The Boland Project's development strategy has focused
on addressing commercial risk before drilling at scale. The Company's recently
announced acquisition of three additional tenements has increased Cobra's
prospective palaeochannel landholding to over 3,365km(2), and the key
workstreams that are currently underway will be a precursor to drill testing
at such scale.

 

Highlights

 

·    Results from sonic core drilling are imminent and will enable Cobra
to confirm sample accuracy by aircore drilling - this is a key precursor to
further resource definition drilling

·    Resource modelling and density analysis are underway to support an
independent Mineral Resource Estimate ("MRE")

·    A total of 395 samples from historical uranium-focused drilling
across the recently acquired tenements are being analysed for rare earths.
Results are expected in July 2025

·    A further 500 samples are being recovered from the South Australian
core library for re-analysis to further refine targets for drilling on these
tenements

·    Documentation for permitting approvals to enable infield hydrology
and permeability testing have been submitted. Cobra aims to complete in-field
studies demonstrating the ISR method in August 2025

·    Metallurgical optimisation testing by the Australian Nuclear
Scientific Organisation ("ANSTO") has commenced. Diagnostic tests using
alternate lixiviants to maximise dysprosium and terbium recoveries have been
completed - results are expected in July 2025

·    A scaled ~44kg bench-scale ISR column is scheduled to commence in the
coming weeks to demonstrate ISR recovery across the greater Boland footprint -
this will further optimise the processing flowsheet and generate sufficient
MREC to support commercial offtake testing

 

Rupert Verco, Managing Director of Cobra, commented:

 

"We remain committed to addressing investment risk whilst capitalising on
opportunities that our unique style of mineralisation and ISR method of mining
enable. A large amount of legwork has been done to enable work fronts that
will provide valuable news flow over the coming months.

 

The recent addition of three additional tenements provides an unprecedented
level of scale that we look forward to testing in the near future.

 

We are in the ideal jurisdiction to rapidly advance ISR mining and we look
forward to working with the South Australian Department of Mining and other
key stakeholders to advance field trials which are integral for our economic
scoping study planned for later this year."

 

Further Detail on Cobra's Progress at Boland

 

Sonic Core Drilling

 

In May 2025, 445.3m of sonic core drilling was completed across the 6km(2)
mineralised footprint at Boland, enabling analysis of drilling recovery,
sample repeatability and the mapping of geological characteristics important
to ISR. Key points include:

 

·    Assay results from sonic core drilling are imminent

·    Sample representation between previous aircore drilling and sonic
core drilling to be evaluated from the twinning of multiple holes:

o  Previous wellfield sonic core drilling resulted in significantly higher
grades when compared to low-cost aircore drilling

o  Sonic drilling provides 100% sample recovery through the confined aquifer,
where ionic mineralisation enriched in dysprosium and terbium is absorbed to
fine organics within coarse permeable sands

o  Twinning of aircore holes enables a direct evaluation of the effective
sample recovery by aircore drilling

·    Results will be a precursor for further resource definition drilling

 

Resource Definition

 

Cobra aims to define a maiden rare earth MRE at Boland, which will be a
precursor to economic scoping. Key activities include:

 

·    The Company has modelled drilling results to date and is close to
appointing an independent Competent Person to commence the technical
requirements to enable a resource estimation

·    Core density results on 10 sonic core samples are expected to be
completed by ANSTO soon

·    A total of 395 samples from the recently acquired tenement EL6742
have been extracted from the core library and are at the laboratory for REE
analysis. Results are anticipated in late July 2025

·    Further samples are planned to be collected in the coming weeks to
test a further 50 drill holes for Boland-type mineralisation across the
acquired tenements (see Figure 1)

·    Cobra is preparing the necessary approvals to enable drilling on the
recently acquired tenements upon the transfer of title

 

Figure 1. Historic drillhole samples submitted and planned to be re-analysed
on recently acquired tenements EL6742, 6774 and 6780

 

 

 

Infield Permeability Study

 

In 2024, Cobra demonstrated the ISR potential of Boland mineralisation through
three bench-scale ISR tests that successfully demonstrated high REE recoveries
and high permeabilities. Infield permeability and hydrology testing aims to
demonstrate these key productivity metrics in the field, as a basis for future
engineering and economic evaluation. Key workstreams include:

 

·    Further monitoring wells installed at the Boland wellfield in May
2025

·    Electronic Program for Environment Protection and Rehabilitation
("EPEPR") lodged seeking approvals for a permeability study aimed at testing
the ISR mining rate achievable within the wellfield installed at Boland

·    Discharge permit application to be submitted upon receipt of EPEPR
approval

·    Key consultants have been engaged for study execution

·    Cobra is targeting August 2025 for permeability study completion

 

Figure 2. Well installation of a further injection well to support the planned
tracer field study.

 

 

Metallurgy - ANSTO Optimisation Programme

 

In January 2025, Cobra produced a high-grade, high-purity Mixed Rare Earth
Carbonate ("MREC"). Optimisation tests are currently underway to increase the
recoveries of dysprosium and terbium, whilst optimising impurity removal
processes to reduce cerium and lanthanum.

 

·    ~70Kg of sonic core sample has been delivered to ANSTO to enable
scaled ISR studies and flow sheet optimisation

·    The programme has commenced with sample preparation and diagnostic
leach tests trialling alternate lixiviants (i.e. magnesium sulphate)
completed. Preliminary results are expected during July 2025

·    A largescale ~44kg column leach trial is scheduled to commence in the
coming weeks to generate a large quantity of pregnant liquor ("PLS") to:

o  Evaluate recoveries from a larger representative sample of the Boland
palaeochannel system, whilst optimising conditions for downstream impurity
removal and MREC precipitation which includes cerium removal studies

o  Produced MREC will be used to advance commercial offtake discussions

o  Additional PLS will be used to evaluate alternate low-cost processing
options such as membrane desorption and selective resin exchange

 

Follow this link to watch a short video of CEO Rupert Verco discussing this
announcement: https://investors.cobraplc.com/link/0PQgGe
(https://investors.cobraplc.com/link/0PQgGe)

 

Further information relating to Boland is presented in the appendices.

 

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.

 

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 12 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 17 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 13 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 enabling bottom quartile recovery costs
without any need for excavation or ground disturbance. Cobra is focused on
de-risking the investment value of the discovery by proving ISR as the
preferred mining method and testing the scale of the mineralisation footprint
through drilling.

 

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:

 

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

X: 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/)

 

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Appendix 1: Background information - the Boland Project and ISR

 

Cobra's unique and highly scalable Boland discovery is a strategically
advantageous ionic rare earth discovery where high grades of valuable heavy
and magnet rare earths occur concentrated in a permeable horizon confined by
impermeable clays. Bench-scale ISR testing has confirmed that mineralisation
is amenable to ISR mining. ISR has been used successfully for decades within
geologically similar systems to recover uranium within South Australia.
Results of this metallurgical test work support that, with minor optimisation,
ISR techniques should enable non-invasive and low-cost production of critical
REEs from Cobra's Boland discovery.

 

·    The Boland Project was discovered by Cobra in 2023. Mineralisation is
ionically bound to clays and organics within palaeochannel sands within the
Narlaby Palaeochannel

 

·    Mineralisation occurs within a permeable sand within an aquifer that
is saltier than sea water and is confined by impermeable clays

 

·    ISR is executed through engineered drillhole arrays that allow the
injection of mildly acidic ammonium sulphate lixiviants, using the confining
nature of the geology to direct and lower the acidity of the orebody. This
low-cost process enables mines to operate profitably at lower grades and lower
rates of recovery

 

·    Once REEs are mobile in solution in groundwater, it is also possible,
from an engineering standpoint, to recover the solution to surface via
extraction drillholes, without any need for excavation or ground disturbance

 

·    The capital costs of ISR mining are low as they involve no material
movements and do not require traditional infrastructure to process ore - i.e.
metals are recovered in solution

 

·    Ionic mineralisation is highly desirable owing to its high weighting
of valuable HREOs and the cost-effective method in which REEs can be desorbed

 

·    Ionic REE mineralisation in China is mined in an in-situ manner that
relies on gravity to permeate mineralisation. The style of ISR process is
unconfined and cannot be controlled, increasing the risk for environmental
degradation. This low-cost process has enabled China to dominate mine supply
of HREOs, supplying over 90% globally

 

·    Confined aquifer ISR is successfully executed globally within the
uranium industry, accounting for more than 60% of the world's uranium
production. This style of ISR has temporary ground disturbance, and the ground
waters are regenerated over time

 

·    Cobra is aiming to demonstrate the economic and environmental
benefits of recovering ionic HREOs through the more environmentally aquifer
controlled ISR - a world first for rare earths

 

Figure 1: Comparison between the Chinese and the proposed Boland process for
ISR mining of REEs

 

 

 

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