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REG - Cobra Resources PLC - Historical Drillhole Re-Assay Results

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RNS Number : 5064E  Cobra Resources PLC  27 February 2024

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET
ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK
MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE
REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

 

27 February 2024

 

Cobra Resources plc

("Cobra" or the "Company")

 

Historical Drillhole Re-Assay Results

 

Results support massive scale potential of palaeochannel hosted ionic rare
earths

 

Cobra (https://cobraplc.com/) , an exploration company focused on the Wudinna
Project ("Wudinna") in South Australia, is pleased to announce that Stage 1
re-analysis of historical drillholes, designed to demonstrate the regional
scale potential of the Boland ionic rare earth discovery across several Cobra
tenements, has defined Heavy Rare Earth Oxide ("HREO") enriched mineralisation
within the Yaninee Palaeochannel, located ~30km southwest of Boland, where
Rare Earth Element ("REE") mineralisation occurs proximal to sandstone hosted
uranium mineralisation.

 

Highlights

 

·    New mineralisation system identified: intersections enriched in HREOs
occur in sediments within the Yaninee Palaeochannel, located ~30km southwest
of the Boland prospect located in the Narlaby Palaeochannel

 

·    Results demonstrate massive scale potential: intersections within the
Yaninee Palaeochannel confirm the prospectivity across a further 150km(2) of
Cobra-held palaeochannel

 

·    HREO enrichment: intersections enriched in high value Magnet Rare
Earth Oxides ("MREOs") and HREOs

 

·    In situ recovery ("ISR") potential: mineralisation occurs within the
same geological units as Boland, where conditions support ISR mining and high
recoveries using benign acidities with low acid consumptions

 

·    Validation of REE and uranium targeting: highest grades of REE
mineralisation occur proximal to and below sandstone hosted uranium
mineralisation at the Kattata prospect, where re-analysis confirms historical
intersections of up to 271 ppm U(3)O(8)(1). This validates the Company's
complementary exploration strategy to target known uranium roll-front
mineralisation

 

·    Hard rock grab samples taken by previous explorers at the Kattata
workings are elevated in REEs, suggesting a localised enriched source for
ionic REE mineralisation

 

Significant intersections include:

 

·    SBUO5008 intersects 3m at 818 ppm (MREO 32%, HREO 22%) from 52m, 3m
at 810 ppm Total Rare Earth Oxides ("TREO") (MREO 27%, HREO 15%), 1m at 519
ppm TREO (22% MREO, 23% HREO) from 80m, and 1m at 171 ppm U(3)O(8) from 52m

 

·    IR 293 intersects 6m at 788 ppm TREO (MREO 20%, HREO 9%) from 46m,
including 2m at 1,090 ppm TREO (MREO 20%, HREO 12%) from 50m

 

·    RD1 intersects 6m at 514 ppm (MREO 24%, HREO 37%) from 54m

 

·    IR 295 intersects 4m at 553 ppm TREO (MREO 21%) from 38m

 

·    IR 294 intersects 4m at 512 ppm TREO (MREO 22%) from 42m

 

·    All results are from composited downhole samples, with grade
concentrations expected over narrower intersections

 

·    Stage 2 re-analysis will test:

 

o  Intervals from 20 holes on the Narlaby Palaeochannel to define extensions
to the Boland discovery

 

o  Intervals from a further nine holes located within the Yaninee
Palaeochannel

 

o  Intervals from ~50 drillholes from the Pureba tenement, where holes
proximal to roll-front uranium mineralisation will be prioritised

 

Rupert Verco, CEO of Cobra, commented:

 

"These results re-affirm our belief that the ionic REE mineralisation
confirmed at Boland is not isolated but part of an extensive system within
Cobra tenements that is amenable to low cost, low disturbance ISR mining. This
work will, in time, inform a potentially substantial palaeochannel ionic rare
earth mineral resource estimate.

 

The proximity of REE mineralisation to sandstone hosted mineralisation at
Kattata also validates our strategy to target high grade ionic REE
mineralisation proximal to uranium roll-fronts at the Yarranna South East
prospect.

 

As we focus on confirming the ISR potential at Boland, we will continue to
demonstrate scale whilst identifying high grade targets and exploring uranium
upside.

 

The amenability of mineralisation and geology to ISR is a significant
advantage that Cobra is moving quickly to demonstrate given the extraction
method's potential to offset the depth of intersection and materially reduce
mining costs. Through our strategic work programme, we aim to demonstrate that
the ionic REE mineralisation across Cobra's significant land package presents
as one of the world's lowest cost sources of magnet and heavy rare earths."

 

1 Open file envelopes No. 10677 Minataur Exploration Pty Ltd, 2004

 

Figure 1: Stage 1 re-analysis results and the location of drillholes to be
re-assayed in Stage 2

 

 

 

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 Gold and Rare
Earth 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. 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/)

 

Further information regarding Cobra's rare earth strategy

 

Cobra is investigating occurrences of REEs which it soon hopes to prove can be
recovered:

 

·      cost efficiently with minimal infrastructure

·      by a time efficient mining process known as ISR

·      with a significantly reduced environmental footprint

 

Cobra's extensive landholding lies within the Southern Gawler Craton in South
Australia, where Hiltaba Suite rocks - long known to contain elevated levels
of REEs (evident at a number of world class mineral deposits like Olympic Dam)
- outcrop and have been subject to prolonged weathering in naturally acidic
groundwaters.

 

Exploration to date has demonstrated that extended weathering cycles have
released REEs from their crystal structure in minerals such as bastnaesite,
monazite and xenotime, allowing REE ions to move in groundwater until they
become loosely attached (by ionic adsorption) to the surfaces of clay
particles within less acidic palaeochannels.

 

The Company intends to demonstrate that by temporarily restoring the
palaeochannel groundwater to its original acidity, the REEs will be released
to solution (via ion exchange) and become accessible by pumping groundwater to
the surface.

 

Initial metallurgical test work performed by ANSTO has demonstrated
exceptionally high ion exchange recoveries at an acidity equivalent to orange
juice. Cobra is now moving to field trial the ISR process at the Boland
prospect. ISR has been used successfully in South Australia for decades for
the cost efficient, safe and environmentally friendly recovery of uranium.

 

Further information regarding re-analysis results

 

REEs and uranium are sourced from similar minerals such as zircon, monazite,
and xenotime within the enriched Hiltaba Suite granites of the Gawler Craton.
Natural weathering and supergene leaching mobilises both uranium and REEs
within acidic (and enriched) groundwaters that migrate through the Narlaby
system. Whilst the chemistry for the secondary deposition for REDOX and ionic
adsorption differ, the geological mechanisms that promote the oxidation for
REDOX roll-fronts are likely to produce chemical boundaries that promote
physisorption (the adsorption of REEs to clays). This warrants that the
exploration approach targets oxidation sources that promote the deposition of
both REEs and uranium.

 

The historical Kattata gold workings on Cobra's Yaninee tenement were
reportedly worked from 1905-1941 and assays of hematite + chlorite brecciated
granite mine spoils analysed by previous explorers yielded anomalous REE and
hematite. Follow-up drilling identified roll-front hosted uranium across a
>500m transect where grades of up to 271 ppm U(3)O(8) were defined within
reduced sands.

 

The objective of Stage-1 re-analysis was to identify the regional scale
potential for ionic REE mineralisation analogous to the Company's Boland ionic
REE project across Cobra's extensive land tenure. Samples from 17 holes were
initially selected as they contained the same geological units that host ionic
REE mineralisation at the Boland prospect.

 

Results of Stage 1:

 

·    Confirm the thesis for regionally scalable ionic rare earth
mineralisation amenable to ISR mining

 

·    Validate the Company's strategy to target areas proximal to known
sandstone hosted uranium as re-analysis of drillhole SBUO50008 confirms REE
mineralisation directly below a uranium intersection

 

·    Demonstrate mobility of heavy rare earths within the palaeosystem, a
characteristic of ionic REE deposits, as HREO ratios vary greatly from 5% -
49% of the TREO between intervals

 

·    Confirm the potential for ionic REE mineralisation within the Yaninee
Palaeochannel, where Cobra's 100% owned exploration licence covers ~150km(2)
of the paleochannel

 

·    Provide confidence in demonstrating further REE intersections as the
Company commences a second stage of REE analysis with a focus on:

 

o  Cost effectively expanding the mineralisation footprint at Boland (20
holes)

 

o  Testing regions proximal to known uranium mineralisation at the Yarrana SE
prospect (50 holes)

 

o  Testing further holes within the Yaninee Palaeochannel

 

Table 1: Stage 1 re-analysis significant REE intersections

 

 

 Drillhole  From (m)  To (m)  Int (m)  TREO ppm  Nd(2)O(3) ppm  Pr(6)O(11) ppm  Dy(2)O(3)  ppm   Tb(2)O(3) ppm  MREO ppm  HREO ppm
 SBUO5008   52        55      3        818       187            44              25               4.4            260       185
 including  52        53      1        1314      297            66              46               8.1            418       290
 and        74        77      3        810       157            46              13               2.3            218       120
 and        80        81      1        519       81             22              12               1.8            116       119
 IR 293     46        52      6        788       111            35              9                1.6            157       74
 including  50        52      2        1090      152            47              14               2.5            215       128
 IR 294     40        44      4        512       82             24              7                1.3            115       47
 IR 295     38        42      4        553       88             26              4                0.8            119       29
 RD 1       54        60      6        514       85             17              20               3.1            126       192

 

Table 2: Stage 1 re-analysis of uranium intersections (greater than 10 times
crustal abundance)

 

 Drillhole  From (m)  To (m)  Int (m)  U(3)O(8) ppm  Th ppm
 IR 291     28        30      2        49.8          2.3
 IR 495     60        62      2        33.4          11.6
 SBUO5008   52        55      3        76.8          1.3
 SBUO5008   52        53      1        171.1         1.7
 IR 1055    60        62      2        59.4          12.5

 

 

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 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
                                                          fine/coarse material.
 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.                                                   ·      Pulp 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 AMG94 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.

 

 

Appendix 2. Collar Locations

 

 Drillhole  Drillhole No  Operator                             Drilling Method  Depth (m)  Dip  Easting                       Northing                        Drill Date
 IR 3       132151        Carpentaria Exploration Co Pty Ltd.  Rotary - Mud     98         -90             485,399                       6,416,481            4/04/1979
 IR 51      132200        Carpentaria Exploration Co Pty Ltd.  Rotary - Mud     54         -90             475,029                       6,431,423            3/05/1979
 IR 66      132215        Carpentaria Exploration Co Pty Ltd.  Rotary - Mud     90         -90             462,629                       6,445,598            10/05/1979
 IR 291     134660        Carpentaria Exploration Co Pty Ltd.  Rotary - Mud     58         -90             507,819                       6,347,373            9/04/1980
 IR 292     134661        Carpentaria Exploration Co Pty Ltd.  Rotary - Mud     54         -90             505,779                       6,347,533            9/04/1980
 IR 293     134662        Carpentaria Exploration Co Pty Ltd.  Rotary - Mud     54         -90             503,909                       6,347,753            10/04/1980
 IR 294     134638        Carpentaria Exploration Co Pty Ltd.  Rotary - Air     48         -90             503,929                       6,349,573            9/04/1980
 IR 295     134639        Carpentaria Exploration Co Pty Ltd.  Rotary - Air     42         -90             504,729                       6,351,273            10/04/1980
 IR 494     132355        Carpentaria Exploration Co Pty Ltd.  Rotary - Mud     84         -90             412,686                       6,430,296            10/06/1980
 IR 495     132356        Carpentaria Exploration Co Pty Ltd.  Rotary - Mud     72         -90             411,833                       6,431,854            10/06/1980
 IR 1052    133529        Carpentaria Exploration Co Pty Ltd.  Rotary - Mud     132        -90             456,077                       6,452,097            4/04/1981
 IR 1055    133532        Carpentaria Exploration Co Pty Ltd.  Rotary - Mud     96         -90             458,698                       6,451,203            6/04/1981
 SBU05008   219902        Toro Energy Ltd.                     Aircore          82         -90             492,699                       6,347,245            14/05/2006
 RD 1       138344        Esso Exploration                     Rotary - Mud     66.5       -90             489,704                       6,336,073            30/11/1981

 

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