REG - Cobra Resources PLC - Rare Earth and Gold Resource Upgrades
07/09/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230907:nRSG6341La&default-theme=true
RNS Number : 6341L Cobra Resources PLC 07 September 2023
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.
7 September 2023
Cobra Resources plc
("Cobra" or the "Company")
Rare Earth and Gold Resource Upgrades
Unique and Economically Advantageous Dual Resource Project
Cobra, a gold, rare earth and IOCG exploration company focused on the Wudinna
Project in South Australia, is pleased to announce upgrades to both its Rare
Earth Elements ("REE") and Gold JORC Mineral Resource estimates ("MRE"), which
establish this dual resource project as unique and economically advantageous.
Highlights - Rare Earth Elements
· Upgraded REE MRE includes:
o +99% increase in tonnes
o +5% increase in Magnet Rare Earth Oxide ("MREO") grade
o +109% increase in MREO metal content
· An exclusively unique REE resource that overlies the Baggy Green and
now, Clarke gold resources, providing a competitive metric for low operational
costs
Highlights - Gold
· Upgraded Gold MRE includes:
o +32% increase in gold metal (+68,000 Oz)
o +1.4Mt increase in ore tonnes
o 33,000 Oz maiden MRE estimate at the Clarke prospect
· Shallow resource - all resource ounces occur within 200m of surface,
presenting as low cost, camp scale open pit extraction with enhanced economics
from REE overburden
· Total gold resource of 5.8Mt at 1.5 g/t gold for 279,000 Oz
· Gold ounce increases across all deposits, demonstrating potential for
additional growth through infill and further extensional drilling
Rupert Verco, CEO of Cobra, commented:
"It is pleasing to see resource extension at all gold deposits and a doubling
of rare earth resources, achieved at exceptionally low cost.
We are one step closer to demonstrating the commercial value of this unique
dual resource and Wudinna is undoubtedly presenting as an economically
advantageous project to take forward.
Cobra's rare earth strategy has been based upon economic viability. Defining
rare earths within overburden provides a competitive edge when compared to
stand-alone clay-hosted REE projects - with the exciting additional potential
of ionic mineralisation at Boland, where we are eagerly awaiting final
metallurgical results to validate proof-of-concept for in situ-leachable, low
cost and sustainable sourcing of critical minerals.
Between our growing resources and our pipeline of targets such as Boland,
Cobra is delivering transformational exploration success with potentially
global implications."
The 2023 Gold and REE JORC MRE updates are defined below:
Table 1: Wudinna Project 2023 JORC MRE Update
Gold Mineral Resource Estimate Rare Earth Mineral Resource Estimate
Category Deposit Tonnes Au Ounces Tonnes TREO MREO LREO HREO Pr(6)O(11) Nd(2)O(3) Dy(2)O(3) Tb(4)O(7)
Mt g/t oz Mt ppm ppm ppm ppm ppm ppm ppm ppm
Indicated Barns 0.44 1.3 18,000 - - - - - - - - -
Inferred 2.19 1.6 116,000 - - - - - - - - -
Inferred Baggy Green 2.12 1.4 96,000 15.1 652 142 512 140 29 97 14 2
Inferred Clarke 0.73 1.4 33,000 26.5 725 175 571 154 35 122 16 3
Inferred White Tank 0.33 1.5 16,000 - - - - - - - - -
Total 5.81 1.5 279,000 41.6 699 163 549 149 33 113 15 3
Rare Earth Mineral Resources reported above a cut-off grade of 320 ppm TREO-Ce
Gold Mineral Resource reported above a cut-off grade of 0.5 g/t gold
The Wudinna Project's gold resource comprises four primary, shallow, camp
scale gold occurrences. The alteration mineralogy and structural genesis
associated with the gold mineralisation event is believed to act as a catalyst
for REE enrichment and mobilisation. The spatial proximity of rare earth
mineralisation has the potential to economically complement the gold
mineralisation.
The Wudinna Project's unique REE resource lends itself to a sustainable supply
of critical minerals central to decarbonisation, owing to the resource's
position as overburden. Metallurgical testwork has demonstrated MREO
recoveries of up to 35% at a pH 1. In comparison to other clay-hosted REE
projects, these results are considered economically competitive. Further
testwork is underway to enhance recoveries without materially increasing
acidities which impact cost and environmental risk. Current studies include
beneficiation, material characterisation and gangue element management. This
work is iterative in nature.
Figure 1: Locality plan - Wudinna Project 2023 MRE Update
Figure 2: Cross section of the Clarke and Baggy Green dual gold and REE
resource models demonstrating the complementary spatial nature of the MREs
Figure 3: Wudinna Project gold MRE variance since the 2019 MRE
Figure 4: Grade tonnage curve for the Baggy Green and Clarke rare earth MRE
demonstrates the relative relationship between grade and tonnage distribution.
The cut-off grade of 320 ppm TREO-Ce reflects the deflection point between
background and grade enrichment
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 Limited (Joint Broker) +44 (0)20 7186 9952
Erik Woolgar
Damon Heath
Vigo Consulting (Financial Public Relations) +44 (0)20 7390 0234
Ben Simons
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
total 1,832 km(2), with other nearby tenement rights totalling 1,429 km(2).
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.
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/)
Competent Persons Statement
The information in this announcement that relates to the estimation and
reporting of the gold Mineral Resource estimates for the Barns, Baggy Green
and White Tank Deposits and the Clarke and Baggy Green REE Mineral Resource
estimates has been compiled by Mrs Christine Standing BSc Hons (Geology), MSc
(Min Econs), MAusIMM, MAIG. Mrs Standing is a Member of the Australian
Institute of Geoscientists and the Australian Institute of Mining and
Metallurgy and is a full-time employee of Snowden Optiro (Optiro Pty Ltd) and
has acted as an independent consultant. The information in this announcement
that relates to the estimation and reporting of the gold Mineral Resource
estimate for Clarke has been compiled by Ms Justine Tracey BSc Hons (Geology),
MSc (Geostatistics), MAusIMM. Ms Tracey is a Member of the Australian
Institute of Geoscientists and is a full-time employee of Snowden Optiro
(Optiro Pty Ltd) and has acted as an independent consultant.
Mrs Christine Standing and Ms Justine Tracey have sufficient experience with
the style of mineralisation, deposit type under consideration and to the
activities undertaken to qualify as Competent Persons as defined in the 2012
Edition of the "Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (The JORC Code). Mrs Standing and Ms Tracey
consent to the inclusion in this announcement of the contained technical
information relating the Mineral Resource estimations in the form and context
in which it appears.
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 has more than 16 years' 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, Mineral Resource estimation and exploration.
Information in this announcement relates to exploration results that have been
reported in the following announcements:
· "Wudinna Gold Resource Update", dated 7 May 2019
· "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 - Maiden Rare Earth Resource Estimate -
Unique and Unconstrained", dated 9 January 2023
· "Wudinna Project Update - Initial RC Drilling Results Underpin
Gold Resource Growth Potential - Completion of Aircore Drilling Confirms
Highly Prospective Conditions for Ion-Adsorbed Rare Earths", dated 9 May 2023
· "Drilling Defined REE Resource Extension potential", dated 12
June 2023
Definitions
REE - Rare Earth Elements
REO - Rare Earth Oxides
MREO - Magnet Rare Earth Oxides (dysprosium + terbium + praseodymium,
neodymium)
TREO - Total Rare Earth Oxides plus yttrium
TREO-Ce - Total Rare Earth Oxides plus yttrium and minus cerium
Further Information Regarding the REE and Gold MREs
Location and Land Tenure
The Wudinna Project is located on the northern Eyre Peninsula, within South
Australia, a tier 1 mining jurisdiction. The defined REE MRE occurs within EL
6131 (Corrobinnie) and lies within the Pinkawillinie Conservation Park (dual
proclamation land). The tenement is held by Peninsula Resources, a subsidiary
of Andromeda Metals. Cobra is entitled to 75% ownership in the project through
the Wudinna Heads of Agreement. In April 2023, the Company announced it had
achieved its 75% earn-in obligation.
Figure 5: Locality plan
Geology and Nature of Gold and 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 1,590 Ma Hiltaba/GRV tectonothermal event of the
Gawler Craton. Gold and REE 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.
Gold mineralisation at Barns is associated with a large hydrothermal
alteration halo. Within the host granodiorite the outermost alteration
comprises a propylitic alteration zone where primary biotite is altered to
chlorite, the composition of primary plagioclase becomes albite, and iron
sourced from accessory magnetite and possibly biotite is oxidised and forms a
red dusting. Epidote is common and may form from the calcium lost from the
plagioclase during albitisation. The propylitic altered rocks display fine
scale micro-fracturing which has allowed ingress of hydrothermal fluids. At
Baggy Green, the host rocks are visibly altered and sheared in and around the
mineralised zone. Alteration phases include biotite, chlorite, sericite and
possibly hydrothermal magnetite. Gold occurs as free grains which can be
panned from drill samples. The gold mineralisation style at Barns is
reflective of the general features of the gold resources at Baggy Green,
Clarke and White Tank.
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. Weathering
processes have resulted in a supergene enrichment of gold withing the
saprolite and saprock horizons.
The following simplified model is proposed for ionic REEs at the Clarke and
Baggy Green prospects:
· Gold and sulphide mineralisation is directly associated with
Hiltaba Suite volcanics (~1,590-1,575 Ma)
· WNW Riedel shears, under north-south compression (craton
emplacement) act as dilatational conduits through Kimban 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 rare
earth 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 are
adsorbed to clay particles
· Colloidal phases occur as conditions become alkaline
Figure 6: Proposed geological model for gold and REE mineralisation at the
Clarke and Baggy Green prospects
X-Ray Diffraction analysis performed by the Commonwealth Scientific and
Industrial Research Organisation supports that a component of REE bursary is
adsorbed to the primary clay particles, being kaolin and montmorillonite, in
similar fashion to the highly desirable Ion Adsorbed Clay ("IAC") hosted
deposits of southern China.
SEM analyses performed by the University of South Australia determined that:
· Primary REE mineral phases in basement, hard rock lithologies are
zircon, titanite, apatite, andradite, epidote
· Secondary REE mineral phases within the lower saprock (weakly to
moderately weathered basement) are monazite, bastnaesite, allanite, rutile
Figures 7-9: SEM imagery of samples from 27, 47 and 117m downhole of CBRC0042
· REE enrichment in source rock is associated with Hiltaba
intrusive alteration, the primary gold mineralising event
· Elevated phosphate is identified at the base of saprolite,
however the peak is not associated with elevated REE grades (Figure 10)
Figure 10: REE grades downhole of CBRC0042 intersected 8.2m at 561 ppm TREO
from 38.1m below surface, and 19m at 0.79 g/t gold from 83m, including 5m at
2.62 g/t gold from 95m
· Definitive change in REE bearing mineral phases between basement
and saprolite, demonstrated by the calculated mass abundance of respective REE
mineral phases
· Rare earth grade peaks in the upper saprolite occur where secondary
REE phases are low, supporting clay adsorption
The identified changes in mineral phase from hard rock to lower saprock and
the occurrence of grade peaks within the weathered saprolite with very low
identifiable rare earth mineral phases is supportive of a component of the REE
bursary being adsorbed to clay particles and is analogous to the ionic rare
earth deposits of Southern China.
Figure 11: CBRC0042 downhole REO grades, sample pH and the SEM calculated
primary and secondary rare earth bearing mineral phases
Drilling data and intersections can be located in company announcement:
"Wudinna Project Update - Northern Drillholes at Clarke Intercept Additional
Gold Mineralisation - Additional Rare Earth Interceptions Directly Above Gold
Zones", dated 07 February 2022
Drilling Techniques
The Barns Mineral Resource estimate is based on 94 drillholes (11,193.1m)
consisting of Diamond ("DD"), Reverse Circulation ("RC"), and Rotary Hammer
("RH"). 20 holes have been drilled by Cobra since 2019.
The White Tank Resource is based on 49 drillholes (3,687m) consisting of RC
and RH drilling. 5 holes have been drilled by Cobra since 2019.
The Baggy Green Resource is based on 102 holes (9,433.0m) consisting of DD,
RC, and RH drilling. 15 holes have been drilled by Cobra since 2019.
The Clarke Resource is based on 87 holes (7,789m) consisting of AC and RC
drilling. 67 holes have been drilled by Cobra since 2019.
The Rare Earth Mineral Resource estimate is based upon the drill results or
re-analysis of 271 drillholes (19,065.1m) that consist of Aircore ("AC"), RH,
and RC and a single DD drillhole. 48 RC and 69 AC holes have been drilled by
Cobra since 2019. All rare earth results incorporated within the MRE were
announced during 2022 and 2023.
The drillhole spacing within the Mineral Resource for the rare earths area is
generally 200m by 200m, however areas of tighter drilling and sampling occur
proximal to gold mineralisation where drill density is up to 25m by 100m. The
drillhole spacing for the gold resources is on transects designed at 50-80m
apart. Drillholes are typically 50-60m apart on the drill lines in the
Inferred Mineral Resource areas. At Barns the drillhole spacing narrows to 50m
by 20m in the area where Mineral Resources have been classified as Indicated.
Sampling and Sub-sampling Techniques
Downhole sample composites vary over the Mineral Resources, with historic
drilling and subsequent re-analysis being performed on pulp samples from 1m,
2m, 4m and 6m down-hole intervals. Samples from Cobra's drilling have produced
1m composites from RC drilling and 2-3m from AC drilling. Owing to the
variable nature of REE mineralisation through the saprolite, greater composite
lengths are expected to understate grade.
RC drill samples were collected via a rig mounted cyclone and cone splitter to
produce 2-4kg of sample. A riffle splitter was used to split any oversize
samples to the 2-4kg size.
AC samples were collected via a rig mounted cyclone into a green bag or bucket
for each 2-3m interval. A PVC spear was used to collected a representative
2-4kg.
Samples were collected from the top of hole. Samples for REE analysis were
submitted from the top of the saprolite profile to the end of hole.
Sample Analysis Methods
From 2019 to the end of 2022, samples were submitted to Genalysis Intertek
Laboratories, Adelaide, for preparation and analysis. Multi-element
geochemistry was digested by four acid ICP-MS and analysed for Ag, Ce, Cu, Dy,
Er, Eu, Gd, Ho, La, Lu, Na, Nd, Pr, Sc, Sm, Tb, Th, Tm, U, Y and Yb. Au
analysis was completed through 50g and 25g fire assay.
From the start of 2023, samples were submitted to Bureau Veritas, Adelaide for
preparation and analysis. Multi-element geochemistry was digested by four acid
ICP-MS/ ICP-OES and analysed for Ag, Ce, Cu, Dy, Er, Eu, Gd, Ho, La, Lu, Mg,
Na, Nd, P, Pr, Sc, Sm, Tb, Th, Tm, U, Y and Yb. Au analysis was completed
through 50g fire assay.
Mineral Resource Estimation and Classification
The REE and gold Mineral Resources have been estimated by independent
consultants to the Company, Snowden Optiro.
The resource model for the REE mineralisation at Clarke and Baggy Green was
constructed using a parent block size of 25 mE by 40 mN on 1 m benches and the
parent blocks were allowed to sub-cell down to 5 mE by 10 mN by 0.5 mRL to
more accurately represent the geometry and volume of the saprolite and saprock
domains. Categorical Indicator Kriging ("CIK") at the sub-cell resolution was
used to define REE mineralised (>100 ppm CeO(2) at a 45% threshold) blocks.
The REE block grades were estimated using ordinary kriging. All REE
(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)
and Y(2)O(3)) were estimated independently.
The gold resource model at Barns was constructed on a block size of 10 mE by
10 mN on 4m benches. At White Tank, a parent block size of 10 mE by 20 mN on
4m benches was used. At Clarke, 25mE by 25 mN on a 3m bench blocks were used
and at Baggy Green a parent block size of 10 mE by 10 mN on 5m benches were
used.
The REE Mineral Resources and the majority (96%) of the gold Mineral Resources
have been classified as 'Inferred' on the basis of confidence in geological
and grade continuity and taking into account data quality, data density and
confidence in the grade estimation, using the modelled grade continuity. In
places, the drillhole density is sufficient to support a higher Mineral
Resource classification and scope exists to review the current Mineral
Resource classification if positive results are obtained from additional
metallurgical studies that support economic viability.
An area of Barns has been classified as Indicated within areas where drill
spacing is generally 20 mE by 50 mN or less and is above 20 mRL.
At Clarke, two northern mineralisation domains have not been included in the
Mineral Resource estimate due to limited confidence in geometry and grade
distribution. These areas have been classified as exploration potential.
Density
Weathering domains that reflect the controls to rare earth distribution were
produced to remove transported cover and fresh basement from the REE Mineral
Resource estimate. Within the saprolite domain, density was measured for 19
saprolite samples from diamond drilling at the Baggy Green and Barns gold
prospects that exhibit a range of densities between 1.2 t/m(3) and 2.01
t/m(3). The average density of 1.6 t/m(3) was applied for tonnage estimation
of the REE Mineral Resource.
No changes have been applied to the bulk density parameters used for the gold
Mineral Resource estimates. As previously reported, a total of 255 bulk
density determinations were undertaken at Barns on either historical or recent
DD drillholes and 185 bulk density determinations were undertaken at Baggy
Green on recent DD drillholes. Average values were calculated from the
complete dataset by Mining Plus in 2016 and were used in the "Wudinna Gold
Resource Update", dated 7 May 2019. The average values determined for the
transitional material and the fresh mineralisation at Barns were applied to
the Barns and White Tank (located 1 km to the south of Barns) Mineral Resource
estimates and the average values determined for the supergene and fresh
mineralisation at Baggy Green were applied to the Clarke and Baggy Green
Mineral Resource estimates.
Cut-off Grade
The REE Mineral Resource has been reported above a cut-off grade of TREO-Ce of
320 ppm and assumes extraction by open pit mining. The cut-off grade was
selected based on the evaluation of other advanced clay-hosted rare earth
mineral resources and the consideration that future economic analysis of the
cut-off grade is likely to incorporate parameters that support extraction of
the underlying gold mineralisation.
A gold cut-off grade of 0.5 g/t has been selected to reflect current commodity
prices and a likely open pit mining option in conjunction with the overlying
rare earth extraction.
Metallurgy
· Preliminary metallurgical test work focusing on extraction techniques
adopted to ionic phase mineralisation using H(2)SO(4) as a lixiviant, and
performed by Australia's Nuclear Science and Technology Organisation, yielded
recoveries of up to 34% Total Rare Earth Element ("TREE") from samples across
two holes at Clarke
· Preliminary metallurgical testwork has provided positive indications
that REE bursary is bound to clay particles. The identification of a technique
or techniques to optimally recover rare earth metals from the saprolite
mineralisation is ongoing with further desorption and leach testing underway
· pH testing of drill samples demonstrates variable conditions across
all prospects, saprolite horizons, and types of clays that are associated with
high REE adsorption capacity
· The nature of the bonds which adsorb the REEs within enclosing clay
appear dependent upon the local chemical environment:
o Where local pH is greater than optimal (moderately alkaline), colloidal
bonding is more abundant and a positive cerium anomaly is generally present
o Where local pH is in an optimal range, ionic bonding appears favoured, the
valuable MREO mineral suite is enhanced (pH 5-6.8), and REE baskets generate
negative cerium anomalies
o Where local pH is lower than optimal (acidic), REEs appear to have
remained mobile and enhanced grades are not retained within the saprolite zone
· pH testwork completed to date provides an encouragement that it can
be utilised as a process to identify metallurgical upside
· REE grade is considerably higher at pH conditions 6-7 and 9-10.
Should further metallurgical testing support a higher component of ionic
adsorption, then saprolite acidity will be a key identifier for determining
higher grades and zones amenable to lower processing costs
Figure 12: TREO breakdown of the Clarke dataset evaluating drillhole grades at
a cut-off of 350 ppm TREO compared to a pH range of 6-7
The likelihood of eventual economic extraction of gold was considered in terms
of possible open pit mining and results from metallurgical testwork
commissioned by Andromeda in 2017. Metallurgical testwork from material at
Barns and Baggy Green indicated gold recoveries ranging from 94.3% to 99.3%
and averaging 97.7% across all samples from a combination of conventional
gravity and cyanide leaching.
Gold and REE Mineral Resource update
Appendix 1: JORC Code, 2012 Edition - Table 1
The table below summaries the assessment and reporting criteria used for the
Barns, White Tank, Clarke and Baggy Green gold Mineral Resource estimates and
the Clarke and Baggy Green REE Mineral Resource estimates and reflects the
guidelines in Table 1 of The Australasian Code for the Reporting of
Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012).
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
instruments, etc). These examples should not be taken as limiting the broad
meaning of sampling. · Historic RC and RAB drilling methods have been employed at the Barns,
White Tank, Clarke and Baggy Green prospects.. diamond (DD) drillholes have
· Include reference to measures taken to ensure sample representivity been incorporated in the Barns and Baggy Gren Mineral Resource estimates.
and the appropriate calibration of any measurement tools or systems used.
· Aspects of the determination of mineralisation that are Material to
the Public Report. · Pulp samples from pre-Cobra Resources' drilling were collected with
intervals of 1-6 m. Samples were riffle split if dry or sub split using a
· In cases where 'industry standard' work has been done this would be trowel if wet.
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 · Pulp samples were obtained from Challenger geological services using a
mineralisation types (eg submarine nodules) may warrant disclosure of detailed combination of logging and geochemical selection criteria. Samples pulled from
information. storage were re-pulverised at the laboratory prior to further analysis.
2021 - 2022
· Sampling during Cobra Resources 2022 aircore ("AC") drilling programme
at all prospects were obtained through AC drilling methods.
· 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
2-4 kg of sample from the collar. Samples from the commencement of saprolite
were selected for analysis.
· Samples were submitted to Bureau Veritas Laboratories, Adelaide and
pulverized to provide 50g fire assay charge and 4 acid digest sample.
AC
· A combination of 2m and 3m samples were collected in green bags via a
rig mounted cyclone. A PVC spear was used to collect a 2-4kg sub sample from
each green bag. Sampling commenced from the collar point with samples
submitted for analysis from the top of saprolite.
· Samples were submitted to Bureau Veritas Laboratories, Adelaide and
pulverized to prude 50g 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
Barns Mineral Resource estimate.
2021- 2022
· Drilling completed by McLeod Drilling Pty Ltd using 75.7mm 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 Wasdrill Pty Ltd 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.
· Whether a relationship exists between sample recovery and grade and · In general, AC sample recoveries were good with 10 kg for each 1 m
whether sample bias may have occurred due to preferential loss/gain of interval being recovered from AC drilling.
fine/coarse material.
· 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 time
geotechnically logged to a level of detail to support appropriate Mineral of drilling. Lithology, colour, weathering and moisture were documented.
Resource estimation, mining studies and metallurgical studies.
· Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography. · Logging is generally qualitative in nature.
· The total length and percentage of the relevant intersections logged.
· All drill metres have been geologically logged on sample intervals (1-3
m).
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core Pre-2021
taken.
· If non-core, whether riffled, tube sampled, rotary split, etc and
whether sampled wet or dry. · Diamond drilling was used to confirm composite sample selection. Core
was halved and sampled according to geology rather than down hole composite
· For all sample types, the nature, quality and appropriateness of the length.
sample preparation technique.
· Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples. · Samples from AC, RAB and "bedrock" RC holes have been collected
initially as 6 m composites followed by 1 m re-splits. Many of the 1 m
· Measures taken to ensure that the sampling is representative of the re-splits have been collected by riffle splitting.
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 · RC samples have been collected by riffle splitting if dry, or by trowel
material being sampled. if wet.
· Pulverised samples have been routinely checked for size after
pulverising.
· Pulp samples were re- pulverized after storage to re-homogenise samples
prior to assay.
2021-2022
· The use of an aluminum scoop to collect the required 2-4kg of
sub-sample from each 2m 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 Intertek Genalysis internal protocols.
· Duplicate AC samples were collected from the sample buckets using an
aluminum scoop at a 1 in 50 sample frequency.
· Sample sizes were appropriate for the material being sampled.
· Assessment of duplicate results indicated this sub - sample method
provided appropriate repeatability for rare earths and gold.
· RC 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 4kg.
· RC field duplicate samples were taken nominally every 1 in 20 samples.
These samples showed appropriate repeatability for rare earth elements and
gold.
2023
· The use of a PVC spear to collect the required 2-4kg of sub-sample from
each 2-3m AC sample length controlled the sample volume submitted to the lab.
· Additional sub-sampling was performed through the preparation and
processing of samples according to the Bureau Veritas internal protocols.
· Duplicate AC samples were collected from the sample buckets using an
PVC spear scoop 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 appropriate repeatability for rare earths and gold.
· RC 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 4kg.
· RC field duplicate samples were taken nominally every 1 in 25 samples.
These samples showed appropriate repeatability for rare earth elements and
gold.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · Samples were submitted to Genalysis Intertek Laboratories, Adelaide for
laboratory procedures used and whether the technique is considered partial or preparation and analysis to the end of 2022. Multi element geochemistry were
total. digested by four acid ICP-MS and analysed for Ag, Ce, Cu, Dy, Er, Eu, Gd, Ho,
La, Lu, Na, Nd, Pr, Sc, Sm, Tb, Th, Tm, U, Y and Yb.
· For geophysical tools, spectrometers, handheld XRF instruments, etc,
the parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc.
· From 2023 samples were submitted to Bureau Veritas, Adelaide for
· Nature of quality control procedures adopted (eg standards, blanks, preparation and analysis. Multi-element geochemistry were digested by four
duplicates, external laboratory checks) and whether acceptable levels of acid ICP-MS/ ICP-OES and analysed for Ag, Ce, Cu, Dy, Er, Eu, Gd, Ho, La, Lu,
accuracy (ie lack of bias) and precision have been established. Mg, Na, Nd, P, Pr, Sc, Sm, Tb, Th, Tm, U, Y and Yb.
· Field gold blanks, and multi element gold - rare earth standards were
submitted at a frequency of 1 in 25 samples.
· Field duplicate samples were submitted at a frequency of 1 in 25
samples.
· Reported assays are to acceptable levels of accuracy and precision.
· Internal lab 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 digitising and
or alternative company personnel. transferred to database.
· The use of twinned holes.
· Documentation of primary data, data entry procedures, data · Geological logging was undertaken digitally via the MX Deposit logging
verification, data storage (physical and electronic) protocols. interface and synchronised to the database at least daily during the drill
programme.
· Discuss any adjustment to assay data.
· Compositing of assays was undertaken and reviewed by Cobra 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 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.
· Specification of the grid system used. · Collar locations were pegged using DGPS to an accuracy of +/-0.5 m.
· Quality and adequacy of topographic control.
· Downhole surveys have been completed for deeper RC and diamond
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 GPS
utilising the Avenza Map app. Collar points recorded with a horizontal
accuracy within 5m.
· Collar locations were picked up using a Leica CS20 base and Rover with
an instrument precision of 0.05cm.
· 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 a Reflex Multishot magnetic downhole survey
tool.
· All surveys are corrected to MGA 94 Zone 53 northing within the MX
Deposit database.
.
Data spacing and distribution · Data spacing for reporting of Exploration Results. REE MRE data
· Whether the data spacing and distribution is sufficient to establish · Drillhole spacing was designed on transects 50 to 80m apart. Drillholes
the degree of geological and grade continuity appropriate for the Mineral generally 50 - 60m apart on these transects but up to 70m apart.
Resource and Ore Reserve estimation procedure(s) and classifications applied.
· Whether sample compositing has been applied.
· Additional scouting holes were drilled opportunistically on existing
tracks at spacings 25-150m from previous drillholes.
Gold MRE data
· Drill lines at Barns have been drilled mainly on a 50 m section spacing
with some sections having been drilled 25 m apart. Drillhole spacings on
section vary but on average are in the order of 20 m apart.
· Drill lines at Baggy Green have been drilled mainly on a 50 m section
spacing. Drillhole spacing on section vary but on average are in the order of
20 m to 50 m apart.
· Drill lines at White Tank have been drilled mainly on a 50 m section
spacing. Drillhole spacing on section vary but on average are in the order of
10 m to 50 m apart.
· Drill lines at Clarke North have been drilled mainly on a 100 m section
spacing. Drill lines at Clarke South have been drilled irregularly mainly on a
50 m to 70 m section spacing.
· Drillhole spacing is not expected to introduce any sample bias.
· Data spacing is considered adequate for the gold and saprolite hosted
rare earth Mineral Resource estimates.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · REE mineralisation is expected to be controlled by vertical weathering
possible structures and the extent to which this is known, considering the profiles.
deposit type.
· If the relationship between the drilling orientation and the
orientation of key mineralised structures is considered to have introduced a · REE results are reported as true width.
sampling bias, this should be assessed and reported if material.
· Vertical drill holes are expected to be perpendicular to rare earth
mineralisation.
· Gold results are not presented as true width but are not considered to
present any down dip bias.
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 Laboratories Adelaide and Bureau Veritas
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 · The Clarke and Baggy Green Gold MRE and the Clarke- Baggy Green Rare
agreements or material issues with third parties such as joint ventures, Earth MRE are located on EL 6131, currently owned 100% by Peninsula Resources
partnerships, overriding royalties, native title interests, historical sites, limited, a wholly owned subsidiary of Andromeda Metals Limited.
wilderness or national park and environmental settings.
· 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. · The Barns and White Tank Gold MRE are located on EL 5953, currently
owned 100% by Peninsula Resources limited, a wholly owned subsidiary of
Andromeda Metals Limited.
· Alcrest Royalties Australia Pty Ltd retains a 1.5% NSR royalty over
future mineral production from licenses EL6001, EL5953, EL6131, EL6317 and
EL6489.
· 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, bastnaesite, 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 changes with varying saprolite acidity and REE
abundances support that a component of REE bursary is ionically adsorbed to
clays.
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.
· Where aggregate intercepts incorporate short lengths of high grade · No maximum/ minimum grade cuts have been applied.
results and longer lengths of low grade results, the procedure used for such
aggregation should be stated and some typical examples of such aggregations
should be shown in detail.
· No metal equivalent values have been calculated.
· The assumptions used for any reporting of metal equivalent values
should be clearly stated. · Rare earth element analyses were originally reported in elemental
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 = CeO(2) + Pr(6)O(11) + Nd(2)O(3) + Sm(2)O(3)
· HREO = 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
angle is known, its nature should be reported.
· Previous holes drilled have been drilled in several orientations due
· If it is not known and only the down hole lengths are reported, there to the unknown nature of mineralisation.
should be a clear statement to this effect (eg 'down hole length, true width
not known').
· Most intercepts are vertical and reflect true width intercepts.
· Gold intercepts are considered oblique to mineralisation.
Diagrams · Appropriate maps and sections (with scales) and tabulations of · Relevant diagrams have been included within the Mineral Resource
intercepts should be included for any significant discovery being reported report main body of text.
These should include, but not be limited to a plan view of drill hole collar
locations and appropriate sectional views.
· Exploration results are not being reported for the Mineral Resources
areas.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · Not applicable - Mineral Resources are defined.
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration
Results.
· Exploration results are not being reported for the Mineral Resource
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 and 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 Mineral Resources to Indicated Mineral 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.
· Core drilling to collect geotechnical samples and bulk density data
is proposed for each resource area.
· 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 = CeO(2) + Pr(6)O(11) + Nd(2)O(3) + Sm(2)O(3)
· HREO = 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 drilled have been drilled in several orientations due
to the unknown nature of mineralisation.
· Most intercepts are vertical and reflect true width intercepts.
· Gold intercepts are considered oblique to mineralisation.
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 within the Mineral Resource
report main body of text.
· Exploration results are not being reported for the Mineral Resources
areas.
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 Resources 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 and 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 Mineral Resources to Indicated Mineral Resources is
planned.
· Core drilling to collect geotechnical samples and bulk density data
is proposed for each resource area.
Appendix 3: Section 3 Estimation and Reporting of Mineral Resources
Criteria JORC Code explanation Commentary
Database integrity · Measures taken to ensure that data has not been corrupted by, for example, · The drillhole database is managed in-house by Cobra Resources using
transcription or keying errors, between its initial collection and its use for the Company's Seequent MXDeposit database.
Mineral Resource estimation purposes.
· Data validation procedures used.
· It has been validated by MXDeposit specialists and Cobra Resources.
· Data has been imported from current and historical data files.
· Source data for historical drilling has been verified as being
drilled by Andromeda Metals and imported directly from their Datashed
database.
· Additional data validation, by Snowden Optiro, included checking for
out of range assay data and overlapping or missing intervals.
Site visits · Comment on any site visits undertaken by the Competent Person and the · Mrs C Standing (Snowden Optiro), acting as Competent Person for the
outcome of those visits. REE MRE and the Barns, Baggy Green and White Tank gold MREs and Ms J Tracey
(Snowden Optiro) acting as Competent Person for the Clarke gold MRE have not
visited the Wudinna Gold Project.
Geological interpretation · Confidence in (or conversely, the uncertainty of) the geological REE
interpretation of the mineral deposit.
· Nature of the data used and of any assumptions made.
· REE mineralisation at Clarke and Baggy Green is within saprolite and
· The effect, if any, of alternative interpretations on Mineral Resource saprock horizons. There is reasonable confidence in the geological
estimation. interpretation of these horizons within the Mineral Resource area.
· The use of geology in guiding and controlling Mineral Resource estimation.
· The factors affecting continuity both of grade and geology. · The saprolite and saprock horizons were interpreted from geological
logging data using Leapfrog Geo software.
Gold
· The Weathering Interpretation has been used to guide the segregation
of the mineralisation into primary and supergene zones., which have been
treated separately in the estimation.
· A host lithology is relatively homogeneous, this has not been used to
guide the primary mineralisation interpretation.
· The 2023 Mineral Resource estimates investigate an alternative
interpretation to the 2016 (Barns) and 2017 (White Tank and Baggy Green)
Mineral Resource estimates.
Dimensions · The extent and variability of the Mineral Resource expressed as length REE
(along strike or otherwise), plan width, and depth below surface to the upper
and lower limits of the Mineral Resource. · The area used to constrain the Mineral Resource (that is within 50 m
of the drilling) extends for 2.0 km east-west by 3 km north-south. The
mineralisation is contained within a horizon of weathered saprolite and
saprock that has a thickness ranging from 1 to 70 m and an average thickness
of 54 m. The top of this horizon extends from surface to 24 m.
Gold
· The Barns resource has an extent of 440 mN by 300 mE and is up to
200 m deep.
· The White Tank resource has an extent of 300 along strike by 150 m
across strike and is up to 120 m deep.
· The Baggy Green resource has two areas of mineralisation with extents
of 240 mN by 460 mE and 150 mN by 360 mE. The mineralisation extends to a
depth of 170 m.
· The Clarke resource has two areas of mineralisation with extents of
450 mN by 170 mE in the north and 290 mN by 145 mE in the south. The
mineralisation extends to a depth of 190 m in the north and 140 m in the
south.
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) applied and REE
key assumptions, including treatment of extreme grade values, domaining,
interpolation parameters and maximum distance of extrapolation from data · Data analysis and estimation was undertaken using Snowden Supervisor
points. If a computer assisted estimation method was chosen include a and Datamine software.
description of computer software and parameters used.
· REE block grades were estimated using ordinary kriging (OK). Snowden
Optiro considers OK to be an appropriate estimation technique for this type of
mineralisation.
· The drillhole spacing within the Mineral Resource area is generally
200 m by 200 m, however, areas of tighter drilling and sampling occur proximal
to gold mineralisation where drill density is up to 25 m by 100 m.
· A maximum extrapolation distance of 50 m was applied around the
drilled area.
· Almost 77% of the sample intervals with assay data are from samples
of ≤1 m intervals, 13% are from intervals of 1-2 m and 10% are from
intervals of 2-12 m. The data was composited to 1 m intervals for statistical
analysis and grade estimation.
· Statistical analysis indicated that outlier grades are not present
and top-cutting (grade-capping) was not applied.
· Variogram analysis was undertaken to determine the kriging estimation
parameters used for OK estimation of each REE.
· Variogram analysis was undertaken for each REE within the saprolite
and saprock. Within the mineralised area of the saprolite maximum continuity
ranges are 169 to 415 m E-W and 54 m to 160 m N-S. Within the saprock maximum
continuity ranges are 100 to 190 m NE-SW and 115 m to 230 m NW-SE.
· Kriging neighbourhood analysis was performed to determine the block
size, sample numbers and discretisation levels.
· Three estimation passes were used in block grade estimation; the
first search was based upon the La(2)O(3) variogram ranges; the second search
was two times the initial search and the third search was up to five times the
initial search. The second and third searches had reduced sample numbers
required for estimation. Almost 70% of the total La(2)O(3), CeO(2) and
Dy(2)O(3) block grades were estimated in the first search pass, 23% within the
second search pass and the remaining 7% estimated in the third search pass.
Gold
· Data analysis and estimation was undertaken using Snowden Supervisor
and Datamine software.
· Drillhole sample data was flagged from mineralised interpretations.
· Mineralisation interpretations were extended to half the drill
spacing and up to 15 m along strike.
· Sample data was composited to a 1 m downhole length.
· The data has a moderate to high coefficient of variation and
high-grade outliers are present. Top-cut grades of 4 to 15 g/t gold were
applied to the supergene mineralisation and 15 to 25 g/t gold to the primary
mineralisation. The top-cut grades were selected by examining histograms, log
probability plots, population disintegration. The Clarke data has a low
coefficient of variation, so no top-cuts were applied.
· No assumptions have been made regarding the recovery of by-products.
· Only gold has been estimated.
· Gold mineralisation continuity was interpreted from variogram
analyses to have along strike (or down-plunge) ranges of 53 m to 110 m, across
strike (or down-dip) ranges of 32 m to 80 m and vertical (or perpendicular to
the mineralisation plane) of 1.8 to 6 m.
· Estimation was carried out using ordinary kriging at the parent block
scale.
· The search ellipses were oriented within the plane of the
mineralisation.
· Three estimation passes were used; the first search was based upon
the variogram ranges in the three principal directions; the second search was
two times the initial search and the third search was five to six times the
second search, with reduced sample numbers required for estimation.
· At Barns, around 23% of the block grades were estimated in the first
pass, 47% in the second pass and 30% in the third search pass. At White Tank,
around 85% of the block grades were estimated in the first pass, 13% in the
second pass and 2% in the third search pass. At Baggy Green, around 40% of the
block grades were estimated in the first pass, 44% in the second pass and 16%
in the third search pass. At Clarke, around 50% of the block grades were
estimated in the first pass, 38% in the second pass and 16% in the third
search pass.
· The estimated gold block model grades were visually validated against
the input drillhole data, comparisons were carried out against the drillhole
data and by northing, easting and elevation slices.
· Description of how the geological interpretation was used to control the REE
resource estimates.
· Geological interpretations of the top of basement, saprock and
saprolite horizons and the transported cover sediments were completed using
Leapfrog Geo software. 3D interpretations of the saprock and saprolite were
used to constrain the Mineral Resource estimate.
· Categorical indicator kriging (CIK) at the sub-cell resolution was
used to define REE mineralised (>100 ppm CeO(2) at a 45% threshold) blocks
within the saprolite horizon.
· The mineralised domains are considered geologically robust in the
context of the resource classification applied to the estimate.
Gold
· The weathering interpretation has been used to guide the segregation
of the mineralisation into primary and supergene zones., which have been
treated separately in the estimations.
· A host lithology is relatively homogeneous, this has not been used to
guide the primary mineralisation interpretation.
· The availability of check estimates, previous estimates and/or mine REE
production records and whether the Mineral Resource estimate takes appropriate
account of such data. · The January 2023 Mineral Resource estimate was used as a comparison
to the Mineral Resource Update.
· A substantial increase in the tonnage of the resource was achieved
through changes to the Indicator kriging parameters from the previous model.
Gold
· The Mineral Resources were estimated by Mining Plus in 2016 (Barns)
and 2017 (White Tank and Baggy Green). These resources were interpreted using
a higher nominal cut-off grade and have different lateral extents and
mineralisation continuity orientations. The global difference between these
estimates and the 2019 estimate is small (5% more contained gold in the 2019
model) and the tonnage and grade variances for the individual deposits are
consistent with the differences applied to the interpretation and resource
estimation process. The 2019 interpretation was updated with additional data
for the 2023 resource estimate.
· No previous gold Mineral Resource estimate has been completed at
Clarke.
· The assumptions made regarding recovery of by-products. · No assumptions have been applied for the recovery of by-products.
· Estimation of deleterious elements or other non-grade variables of economic · Deleterious elements were not considered for the Mineral Resource
significance (e.g. sulphur for acid mine drainage characterisation). estimate.
· In the case of block model interpolation, the block size in relation to the REE
average sample spacing and the search employed.
· Grade estimation was into parent blocks of 25 mE by 40 mN by 1mRL.
· Block dimensions were selected from kriging neighbourhood analysis
and reflect the variability of the deposit as defined by the current drill
spacing.
· Sub-cells to a minimum dimension of 5 mE by 10 mN by 0.5 mRL were
used to represent volume.
· The drillhole spacing within the Mineral Resource area is generally
200 m by 200 m, however, areas of tighter drilling and sampling occur proximal
to gold mineralisation where drill density is up to 25 m by 100 m.
· Search ellipse dimensions were selected from variogram analysis of
La(2)O(3).
Gold
· Block models were generated for Barns using a block size of 10 mE by
10 mN on 4 m benches, for White Tank using a parent block size of 10 mE by 20
mN on 4 m benches, for Clarke using a parent block size of 25 mE by 25 mN on
3 m benches and for Baggy Green using a parent block size of 10 mE by 10 mN
on 5 m benches. The parent blocks at Barns, White Tank and Baggy Green were
allowed to sub-cell down to 2 mE by 2 mN by 0.5 mRL and at Clarke to 1 mE
by 1 mN by 0.5 mRL to more accurately represent the geometry and volumes of
the mineralisation horizons.
· Any assumptions behind modelling of selective mining units. · Selective mining units were not modelled.
· Any assumptions about correlation between variables. REE
· The REEs have moderate to high correlation coefficients (0.57 to
1.0).
· All REEs (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) and Y(2)O(3)) were estimated independently.
Gold
· Only gold was estimated.
· The process of validation, the checking process used, the comparison of · The estimated block model grades were:
model data to drillhole data, and use of reconciliation data if available.
o visually validated against the input drillhole data
o comparisons were carried out against the declustered drillhole data and by
northing, easting and elevation slices.
o global statistical comparisons were carried out between the mean input
sample grade with the estimated block grade for each domain.
· No production has taken place and thus no reconciliation data is
available.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters applied. REE
· The Mineral Resource has been reported above a cut-off grade of
TREO-Ce of 320 ppm and assumes extraction by open pit mining.
· This cut-off grade was selected based on the evaluation of other
advanced clay hosted rare earth Mineral Resources and the consideration that
future economic analysis of the cut-off grade is likely to incorporate
parameters that support extraction of the underlying gold mineralisation.
Gold
· The Mineral Resource has been at a cut-off grade of 0.5 g/t Au, which
is considered appropriate for the likely open pit mining.
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · Planned extraction is by open pit mining.
dimensions and internal (or, if applicable, external) mining dilution. It is
always necessary as part of the process of determining reasonable prospects
for eventual economic extraction to consider potential mining methods, but the
assumptions made regarding mining methods and parameters when estimating · Mining factors such as dilution and ore loss have not been applied.
Mineral Resources may not always be rigorous.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical REE
amenability. It is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider potential · Preliminary work performed by Metallurgical Test Work performed by
metallurgical methods, but the assumptions regarding metallurgical treatment the Australian Nuclear Science and Technology Organisation (ANSTO)
processes and parameters made when reporting Mineral Resources may not always demonstrated recovery potential via desorption/leaching conditions where:
be rigorous.
· At pH4, 0.5M (NH4)2SO4 as lixiviant REE recoveries were generally
below 10%
· At pH1, (NH4)2SO4 as lixiviant recoveries increased with leach
period. At 6 hours recoveries up to 34.7% were achieved.
· Subsequent mineralogy and acidity testing has identified zones that
are likely to have a higher component of ionic adsorption and are therefore
likely to lead to higher recoveries.
· The samples submitted were from gold bearing holes, the pH conditions
do not fit the criteria for REDOX controlled ion adsorption.
· Further metallurgical studies are required to progress an economic
production flowsheet
Gold
· No metallurgical assumptions have been built into the resource
models.
· Test work undertaken to date has demonstrated gold recoveries
averaging 97.7% through a combination of conventional gravity and cyanide
leaching methods.
Environmental factors or assumptions · Assumptions made regarding possible waste and process residue disposal · No assumptions have been made regarding waste and process residue.
options. It is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider the
potential environmental impacts of the mining and processing operation.
Bulk density · Whether assumed or determined. If assumed, the basis for the assumptions. REE
If determined, the method used, whether wet or dry, the frequency of the
measurements, the nature, size and representativeness of the samples. · Average values have been calculated from the dataset.
· The bulk density for bulk material must have been measured by methods that
adequately account for void spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within the deposit. · Bulk density measurements were calculated by water displacement
method. Samples from the saprolite zone were wrapped in cling film before
· Discuss assumptions for bulk density estimates used in the evaluation testing.
process of the different materials.
· Density was measured for 19 samples from the saprolite zone. Values
range from 1.26 t/m(3) to 2.1 t/m(3), with an average 1.6 t/m(3). The average
of 1.6 t/m(3) was used for tonnage estimation.
Gold
· A total of 255 bulk density determinations have been undertaken at
Barns on either historical or recent drillholes.
· The Barns deposit is 1 km north of White Tank and the bulk density
determinations are considered valid for White Tank.
· A total of 185 bulk density determinations have been undertaken at
Baggy Green on either historical or recent drillholes.
· Average values have been calculated from the dataset and applied to
the resource model based on the oxidation/weathering state and lithologies in
the area
· Bulk density measurements were calculated by water displacement
method.
· Density values assigned to the resource models range from 2.52 t/m3
to 2.73 t/m3.
Classification · The basis for the classification of the Mineral Resources into varying REE
confidence categories.
· The Mineral Resources have been classified as Inferred on the basis
· Whether appropriate account has been taken of all relevant factors (i.e. of confidence in geological and grade continuity and taking into account data
relative confidence in tonnage/grade estimations, reliability of input data, quality, data density and confidence in the grade estimation, using the
confidence in continuity of geology and metal values, quality, quantity and modelled grade continuity.
distribution of the data).
· Whether the result appropriately reflects the Competent Person's view of
the deposit. · The assigned classification of Inferred reflects the Competent
Person's assessment of the accuracy and confidence levels in the Mineral
Resource estimate.
Gold
· The Mineral Resources have been classified on the basis of confidence
in geological and grade continuity and taking into account data quality, data
density and confidence in the grade estimation (using the modelled grade
continuity and the slope of the regression as criteria).
· The Mineral Resources at White Tank, Clarke and Baggy Green have been
classified as Inferred.
· The majority (96%) of the Mineral Resource at Barns is classified as
Inferred. Indicated Mineral Resources have been defined at Barns within five
of the primary mineralisation domains in areas where drill spacing is
generally 20 mE by 50 m or less and the resources are above 20 mRL.
· The classification considers all available data and quality of the
estimate and reflects the Competent Person's view of the deposit.
Audits or reviews · The results of any audits or reviews of Mineral Resource estimates. · The Mineral Resources have been reviewed internally as part of normal
validation processes by Snowden Optiro.
· No external audit or review of the current Mineral Resources have
been conducted.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and confidence level · The assigned classification of Indicated and Inferred reflects the
in the Mineral Resource estimate using an approach or procedure deemed Competent Persons assessment of the accuracy and confidence levels in the
appropriate by the Competent Person. Mineral Resource estimate. The statement relates to global estimates of tonnes
and grade.
· The statement should specify whether it relates to global or local
estimates, and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation.
· The statement relates to global estimates of tonnes and grade.
· No production data exists for the Wudinna Project gold or REE
deposits.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END UPDBIGDCUXGDGXLRecent news on Cobra Resources
See all newsREG - Cobra Resources PLC - Final Results for the Year Ended 31 December 2024
AnnouncementREG - Cobra Resources PLC - Sonic Drilling Commences at Boland
AnnouncementREG - Cobra Resources PLC - Updates re Rare Earth & Gold Projects
AnnouncementRCS - Cobra Resources PLC - Response to China’s Rare Earths Export Controls
AnnouncementREG - Official List - Official List Notice
Announcement