REG - Cobra Resources PLC - REE Exploration Strategy to Include Uranium
12/02/2024 07:00
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RNS Number : 7012C Cobra Resources PLC 12 February 2024
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
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ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE
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12 February 2024
Cobra Resources plc
("Cobra" or the "Company")
REE Exploration Strategy to Include Uranium
Potential to cost effectively grow a valuable uranium asset alongside REE
exploration
Cobra (https://cobraplc.com/) , an exploration company focused on the Wudinna
Project ("Wudinna") in South Australia, advises that its strategy to
demonstrate scalability of the Boland ionic rare earths ("REE") discovery will
also test for extensions to roll-front uranium mineralisation identified at
the adjacent Yarranna Uranium Project held by IsoEnergy (TSX-V: ISO) that
extends onto the Company's newly granted tenement (announced 9 January 2024).
Highlights
· Cobra's Boland ionic REE discovery occurs in the Narlaby
Palaeochannel, and this system also hosts known uranium mineralisation at the
adjacent Yarranna Project
· IsoEnergy's Yarranna Uranium Project includes four defined uranium
occurrences, being Yarranna North, Central, South, and South East, where
roll-fronts contain broad zones of mineralisation and high-grade intersections
· Cobra's newly granted tenement EL 6967 ("Pureba") covers the eastern
roll-front mineralisation of the Yarranna South East prospect, where numerous
intersections occur within broad > 200m spaced drilling from multiple
mapped roll-fronts where, on Cobra's tenement, they exceed 3km in length and
remain open. Intersections include(1):
o 1m at 708 ppm U(3)O(8) from 66m (IR1436)
o 3m at 340 ppm U(3)O(8) from 72m, including 1m at 420ppm U(3)O(8) from 73m
(IR1435)
o 1m at 209 ppm U(3)O(8) from 68m (IR1448)
o 0.95m at 617 ppm eU(3)O(8) from 69.95m (IR1065)
· Historical plans and reports reference gamma eU3O8 grades of up to
1,000 ppm(2). Samples from these holes are being sought from the South
Australian core library to be analysed as part of Cobra's REE re-analysis
strategy to confirm the grade of uranium mineralisation
· Similar geological mechanisms dictate REE and uranium mobilisation
through the palaeochannel system where economic occurrences may be recoverable
through low-cost, low disturbance in situ recovery ("ISR") mining
· Historical water samples at Yarranna include U(3)O(8) up to 12,300
ug/L and acidities as low as pH 2.7 which present as a potential source of
acid for REE extraction, supporting potential cost reduction opportunities for
ISR mining and warranting further testing upstream of the Yarranna
roll-front(2)
· South Australia (with 25% of the world's uranium resources) is a pro
uranium mining jurisdiction, hosting Australia's only operating uranium mines:
BHP's Olympic Dam, Heathgate Resources' Beverley and Four Mile, and Boss
Energy's Honeymoon
· South Australian sandstone hosted uranium assets are highly valued in
the market as realised by Boss Energy (BOE.AX: Market Cap A$2,419M) and
Alligator Energy (AGE.AX: Market Cap A$305M)
· Cobra's exploration strategy to demonstrate scale to the Boland ionic
discovery incorporates uranium testing and targeting as the controls that
drive ionic REE mineralisation are likely to be maximised in front of REDOX
(roll-front) boundaries
· Cobra is already advancing the ISR potential of REEs from the Boland
REE prospect and ISR is the established and dominant mining process for
uranium
Rupert Verco, CEO of Cobra, commented:
"As we advance the potential of ionic REE extraction via ISR at Boland, it is
prudent to maximise the resource potential of our assets at minimal additional
cost to the work programme. The geological processes that are promoting
uranium and REE mineralisation within the Narlaby Palaeochannel are
intrinsically related and therefore can be incorporated into our exploration
strategy. The extension of Yarranna South East onto our tenement is an
exciting complementary opportunity, particularly given the considerable market
success of IsoEnergy over the past six months as it approaches nearly A$1
billion in valuation.
The uranium spot price is at its highest point since 2007, breaking US$100/lb,
and has strong market drivers for both supply and demand that see a robust
foreseeable outlook.
Cobra has acquired a valuable, scalable asset with significant upside
potential. We believe we can cost effectively grow a valuable uranium asset
alongside our REE exploration strategy."
1 Open file envelopes No. 3715 & 4010, Carpentaria Exploration Co Pty Ltd,
1981 & 1984
2 eU3O8 refers to a calculated grade based on gamma readings that measure
radiation from decay daughter products and accounts for a factor of
disequilibrium
Figure 1: Cobra's Pureba tenement EL6967 and the location of the Yarranna
South East palaeochannel hosted roll-front uranium occurrence
Background to the Yarranna Uranium Project
Sandstone hosted roll-front uranium mineralisation was discovered at Yarranna
during the 1980s. Mineralisation occurs across four prospects, is generally
broad, highly scalable and of moderate grade. Enriched source rocks, acidic
ground waters and abundant reductant matter are properties of the Narlaby
Palaeochannel making the system highly prospective for in situ recoverable
sandstone hosted uranium. The Yarranna South East prospect that extends into
Cobra's Pureba tenement comprises four primary roll-fronts that host
mineralisation over ~17km(2). Mineralisation is open along strike and the
broad nature of drilling warrants that further roll-fronts are possible within
the defined area of mineralisation.
Consolidated Uranium (TSX-V: CUR) acquired the Yarranna Uranium Project in
2022 for CA$4M. Consolidated Uranium has since merged with IsoEnergy, a
CA$900M uranium focused company with projects located in the world's top
uranium jurisdictions. Its acquisition demonstrates the significant potential
of the Narlaby Palaeochannel to produce world-class uranium assets.
Exploration Strategy and Future Work
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.
Figure 2: Diagram demonstrating the proposed model for the relationship
between ionic REEs and roll-front uranium within the Narlaby Palaeochannel
Cobra is working to demonstrate the district scale potential of ionic REE
mineralisation discovered at the Boland prospect. The South Australian core
library holds a significant number of samples from historical drilling.
Currently, approximately 220 historical pulp samples from uranium focused
drilling are being analysed for REEs and uranium.
Cobra is currently working to locate Yarranna South East samples from
intersections that contain considerable gamma anomalies to analyse and confirm
uranium grades.
Building on existing datasets will enable Cobra to:
· Confirm the regional scalability of ionic REE mineralisation within
the Narlaby Palaeochannel
· Improve roll-front models for the Yarranna South East prospect
· Identify roll-front extensions
· Evaluate spatial relationships between uranium and potential ionic
REE mineralisation to advance dual resource growth capable of being recovered
through ISR mining
· Define and prioritise targets for follow-up Aircore drilling
subsequent to the Company gaining native title, landholder and regulatory
approvals
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.
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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 · Select samples were sent to COMLABS for XRF and AAS analysis.
laboratory procedures used and whether the technique is considered partial or Sample suites were variable across submissions.
total.
·
· 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.
· Nature of quality control procedures adopted (eg standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels of
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. · Drillhole spacing was designed on transects 50-80 m apart.
Drillholes generally 50-60 m apart on these transects but up to 70 m apart.
· Whether the data spacing and distribution is sufficient to establish
the degree of geological and grade continuity appropriate for the Mineral · Additional scouting holes were drilled opportunistically on
Resource and Ore Reserve estimation procedure(s) and classifications applied. existing tracks at spacings 25-150 m from previous drillholes.
· Whether sample compositing has been applied. · Regional scouting holes are drilled at variable spacings designed
to test structural concepts
· Data spacing is considered adequate for a saprolite hosted rare
earth Mineral Resource estimation.
· No sample compositing has been applied
· Drillhole spacing does not introduce any sample bias.
· The data spacing and distribution is sufficient to establish the
degree of geological and grade continuity appropriate for the interpretation
of roll-front, sandstone hosted Uranium mineralisation.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · Drilling was conducted at initial 500m centres and infilled to 50m
possible structures and the extent to which this is known, considering the spacings. Along strike spacing was limited to track access and the
deposit type. accessibility of topography.
· 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 Kimborlites during the
1990s
· Iluka: 2005-2016 explored for HMS and 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.
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