REG - Cobra Resources PLC - Wudinna Project Update
17/01/2023 07:45
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RNS Number : 9573M Cobra Resources PLC 17 January 2023
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17 January 2023
Cobra Resources plc
("Cobra" or the "Company")
Wudinna Project Update
RC Drilling Results - Expanding Gold and Rare Earth Occurrence at Clarke
Prospect Position Cobra for Dual Resource Expansion
Cobra, a gold, rare earth and IOCG exploration company focused on the Wudinna
Project in South Australia, is pleased to announce results from 800m of
Reverse Circulation ("RC") drilling completed in November 2022, where drilling
has expanded the intersected strike of gold mineralisation and defined further
Rare Earth Elements ("REE") mineralisation at the Clarke prospect.
Highlights(1)
· The strike of intersected gold mineralisation at Clarke now
exceeds 600m and sits outside of the defined 211,000 Oz JORC Gold Resource.
Gold intersections include:
o 6m at 4.15 g/t gold from 34m, including 4m at 5.74 g/t gold from 34m
o 18m at 0.6 g/t gold from 57m, including 1m at 1.80 g/t gold from 58m and
2m at 2.16 g/t gold from 68m
o 8m at 0.6 g/t gold from 58m, including 2m at 1.31 g/t gold from 62m
· REE mineralisation intersected peripheral to expanded gold strike
further supports the Company's dual resource strategy. REE intersections
include:
o 24m at 1,093 ppm Total Rare Earth Oxides ("TREO") from 26m, where the
Magnet Rare Earth Oxides ("MREO") equates to 26% of the TREO, including 19m at
1,243 ppm TREO from 29m (MREO: 26%)
o 20m at 683 ppm TREO from 31m, where the MREO equates to 22% of the TREO,
including 2m at 2,249 ppm TREO (MREO: 19%)
o 31m at 514 ppm TREO from 36m, where the MREO equates to 22% of the TREO
o 21m at 519 ppm TREO from 13m, where MREO equates to 23% of the TREO
· REE drilling results demonstrate the growth potential of the recently
published maiden 20.9 Mt REE JORC Mineral Resource Estimate ("MRE")
· Planning is underway to execute 5,000-10,000m of drilling scheduled
to commence in March 2023, aimed at expanding both REE and gold JORC resources
at Clarke, Barns, and Thompson prospects
Rupert Verco, CEO of Cobra, commented:
"These intersections demonstrate the growth potential of our unique dual
resource at the Clarke prospect, where results suggest a significant gold
system, overlain by an expanding rare earth resource.
The results of this programme provide an exceptional platform for further
exploration success in our upcoming - much larger - drilling programme, which
is aimed at expanding both gold and rare earth JORC resources.
A rising gold market, coupled with the demand for ethically and
environmentally sourced rare earths, places Cobra in an enviable position as
we are poised to grow these geologically and spatially related resources."
Figure 1: Plan section detailing the spatial location of RC gold and REE
results represented at grade thickness intersections
(1) All results reported as downhole intersections
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
Charlie Neish
Kendall Hill
The person who arranged for the release of this announcement was Rupert Verco,
Managing Director of the Company.
About Cobra
Cobra is defining a unique multi-mineral resource at the Wudinna Project in
South Australia's Gawler Craton, a tier one mining and exploration
jurisdiction which hosts several world-class mines. Cobra's Wudinna tenements,
totalling 3,261 km(2), contain extensive orogenic gold mineralisation and are
characterised by potentially open-pitable, high-grade gold intersections, with
ready access to infrastructure. Cobra has 22 orogenic gold targets outside of
the current 211,000 Oz gold JORC Mineral Resource Estimate. In 2021, Cobra
discovered rare earth mineralisation proximal to and above the gold
mineralisation which has been demonstrated to be regionally scalable. In 2023,
Cobra published a maiden rare earth JORC Mineral Resource Estimate of 20.9 Mt
at 658 ppm Total Rare Earth Oxides enabling a strategic baseline to advance an
economically beneficial combination of gold and rare earth resources.
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Competent Persons Statement
Information and data presented within this announcement has been compiled by
Mr Robert Blythman, a Member of the Australian Institute of Geoscientists
("MAIG"). Mr Blythman is a Consultant to Cobra Resources Plc and has
sufficient experience, which is relevant to the style of mineralisation,
deposit type and to the activity which he is undertaking to qualify as a
Competent Person defined by the 2012 Edition of the Australasian Code for
Reporting Exploration Results, Mineral Resources and Ore Reserves (the "JORC"
Code). This includes 10 years of Mining, Resource Estimation and Exploration
relevant to the style of mineralisation.
Information in this announcement has been assessed by Mr Rupert Verco, a
Fellow of the Australasian Institute of Mining and Metallurgy ("FAusIMM"). Mr
Verco an employee of Cobra 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, Resource Estimation and Exploration.
Information in this announcement relates to exploration results that have been
reported in the following announcements:
· "Wudinna Project Update - Initial Gold and Rare Earth Results",
dated 14 December 2021
· "Wudinna Project Update - Northern Drillholes at Clarke Intersect
Additional Gold Mineralisation, Additional Rare Earth Intersections Directly
Above Gold Zones", dated 7 February 2022
· "Wudinna Project Update - Re-Analysis Defines Large Rare Earth
Mineralisation Footprint Above Baggy Green and Clarke Gold Mineralisation",
dated 4 May 2022
· "Wudinna Project Update - Aircore Drilling Yields Exceptional
Gold and Rare Earth Results at Clarke" dated 16 August 2022
· "Wudinna Project Update - Additional High-Grade Rare Earths
Defined Across Regional Targets" dated 12 September 2022
· "Wudinna Project Update - Exceptional Rare Earth Scale Potential
at Thompson Prospect Increases REE Footprint from 4 km(2) to 22.5 km(2)"
dated 26 September 2022
· "Wudinna Project Update - Maiden Rare Earth Resource Estimate -
Unique and Unconstrained" dated 9 January 2023
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
Next Steps
The Company is funded to complete the following work scope to advance the
Wudinna Project towards feasibility evaluation:
· Metallurgical evaluation of a range of samples selected at varying pH
conditions - an important catalyst for ionic REE adsorption
· Evaluate beneficiation and metallurgical optimisation processes to
enable the development of a commercial flowsheet evaluation
· Further Scanning Electron Microscope ("SEM") analyses to evaluate
quantities of REE mineral phases at various pH conditions
· A drilling programme of 5,000-10,000m scheduled to commence in March
2023, aimed at growing both gold and REE Mineral Resources at Clarke, Barns,
and Thompson prospects
· Update to existing 211,000 Oz gold MRE to incorporate the Clarke
prospect and over 5,000m of additional drilling undertaken across existing
gold Mineral Resource prospects
Further Information Regarding the RC Drilling Results
In 2022, a total of 800m of RC drilling was completed, aimed at:
· Testing NW strike extensions to gold mineralisation at the Clarke
prospect
· Testing, infilling, and duplicating previous rare earth
intersections proximal to gold mineralisation, to confirm the repeatability of
REE mineralisation
· Producing bulk samples for rare earth metallurgical analysis,
focusing on pre-leach beneficiation potential
· Providing additional samples to test the Company's thesis that
slightly acidic (pH 6-7) and alkaline (pH 10) chemical conditions (thought to
promote ionic clay adsorption) may provide improved metallurgical recoveries
by standard desorption method
Interpretation of Results
The RC drilling programme has:
· Extended the WNW strike of gold mineralisation by a further 125m
beyond CBRC0050 that intersected 33m at 1.03 g/t drilled in November 2021
· Confirmed down dip mineralisation continuity to the intersection of
CBAC0014 that intersected 12m at 1.25 g/t from 18m (Figure 2)
· Highlighted changes in mineralised dip and strike north of a EW
offsetting dip-slip fault, where a steeper dip and rotated strike are
interpreted
CBRC0066 was drilled as CBRC0059 and failed to achieve design depth. Upper
samples of CBRC0056 are in the process of being re-assayed to validate the
interpretation when compared to the intersection of CBRC0059.
The REE results expand, infill, and validate the recent MRE estimation.
Significant intercepts from the programme include:
Table 1: Significant gold results from the 2022 exploration programme,
reported as downhole intersections
BHID DH From (m) DH To (m) Interval (m) Au g/t
CBRC0057 58 66 8 0.60
inc 62 64 2 1.31
CBRC0059 34 40 6 4.15
inc 34 38 4 5.74
CBRC0066 57 75 18 0.60
inc 58 59 1 1.80
inc 68 70 2 2.16
Significant intersections calculated using Datamine downhole compositor with a
cut-over grade of 0.3 g/t Au and a maximum internal dilution of 2m
Table 2: Significant REE results from the 2022 exploration programme, reported
as downhole and true width intersections (greater than 350 ppm TREO)
BHID DH From (m) DH To (m) DH Int (m) TREO + Y (ppm) Neodymium Praseodymium Terbium Dysprosium MREO%
Nd2O3 Pr6O11 Tb4O7 Dy2O3
ppm % ppm % ppm % ppm %
CBRC0057 13 34 21 519 85 16.3% 23 4.5% 2.0 0.4% 12 2.2% 23%
inc 13 18 5 944 154 16.3% 43 4.5% 3.6 0.4% 21 2.2% 23%
CBRC0058 26 50 24 1,093 200 18.3% 54 4.9% 4.0 0.4% 23 2.1% 26%
inc 28 47 19 1,243 234 18.8% 63 5.1% 4.5 0.4% 25 2.0% 26%
CBRC0059 40 54 14 611 97 15.9% 25 4.2% 2.1 0.3% 13 2.1% 23%
and 60 64 4 411 60 14.6% 17 4.2% 1.1 0.3% 7 1.7% 21%
CBRC0062 31 51 20 683 102 14.9% 26 3.9% 3.0 0.4% 19 2.8% 22%
inc 48 50 2 2,249 269 12.0% 66 2.9% 12.0 0.5% 81 3.6% 19%
CBRC0066 12 16 4 434 84 19.3% 26 5.9% 1.6 0.4% 8 1.9% 28%
and 36 67 31 514 80 15.5% 21 4.1% 2.0 0.4% 12 2.3% 22%
Significant intersections calculated using Datamine downhole compositor with a
cut-over grade of 350ppm TREO and a maximum internal dilution of 4m
Figure 2: Section 1 (azimuth 330 degrees, midpoint 546,845mE & 6365185mN)
demonstrating the interpreted steeper dip of gold mineralisation, overlain by
the REE resource.
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
EL6131 (Corrobinnie) and lies within the Pinkawillinie Conservation Park (dual
proclamation land). The tenement is held by Peninsula Resources, a subsidiary
of Andromeda Metals. Cobra has the right to earn up to 75% in the project
through the Wudinna Heads of Agreement. In October 2021, the Company announced
it had achieved its 65% earn-in obligation.
Figure 3: Locality plan
Geology and Nature of the REE Mineralisation
The gold and REE deposits at the Wudinna Project are considered to be related
to the structurally controlled basement weathering of epidote-pyrite
alteration related to the 1590 Ma Hiltaba/GRV tectonothermal event of the
Gawler Craton. Gold and REE mineralisation 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.
The REE mineralisation is regionally extensive in weathered (saprolite and
saprock) zones developed on basement rocks. The nature of controlling
structures that act as conduits for gold mineralisation are also thought to
act as catalysts for the secondary processes that promote weathering and
subsequent mobilisation of REEs to the saprolite and saprock.
The following simplified model is proposed for ionic REEs and the Clarke and
Baggy Green prospects:
· Gold and sulphide mineralisation is directly associated with
Hiltaba Suite volcanics (~1590-1575 Ma)
· WNW redial shears under NS compression (craton emplacement) act
as dilatational conduits through Kimbian and Sleaford age granitoids
· Hiltaba suite mafics are enriched in light REEs
· Gold and sulphide mineralisation forms along sheeted granitoid
"dome" joints, bound within shear zones
· Sericite and epidote alteration halos form peripheral to gold
mineralisation
· Epidote alteration is enriched in REEs providing an enriched
source
· Supergene enrichment of gold occurs at the base of oxidation,
where the weathering of primary sulphides generates acidic conditions
· Primary REE phases are weathered to secondary REE phases through
prolonged weathering
· Acidic conditions generated by the weathering of sulphides
re-mobilises REEs
· Near redox boundaries (pH 6-7) a greater component of REE is
absorbed to clay particles
· Colloidal phases occur as conditions become alkaline
Figure 4: Proposed geological model for gold and REE mineralisation at the
Clarke and Baggy Green prospects
Table 3: Collar location data
Hole ID Hole type Easting Northing Depth (m) Dip Assays Received/ Reported
Au REE Multi-Element (XRF)
CBRC0057 RC 546,763 6,364,519 76 -65 Y Y N
CBRC0058 RC 546,729 6,364,615 52 -65 Y Y N
CBRC0059 RC 546,848 6,364,656 69 -65 Y Y N
CBRC0060 RC 546,948 6,364,681 81 -65 Y N N
CBRC0061 RC 546,824 6,364,730 63 -65 Y Y N
CBRC0062 RC 547,033 6,365,380 58 -65 Y Y N
CBRC0063 RC 546,887 6,365,294 59 -65 Y N N
CBRC0064 RC 546,833 6,365,265 57 -65 Y N N
CBRC0065 RC 546,787 6,365,239 54 -65 N N N
CBRC0066 RC 546,744 6,365,213 87 -65 Y Y N
CBRC0067 RC 546,779 6,365,151 47 -70 N N N
REE Mineral Resource update
Appendix 1: JORC Code, 2012 Edition - Table 1
Section 1 Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling techniques · Nature and quality of sampling (eg cut channels, random chips, or Pre 2021
specific specialised industry standard measurement tools appropriate to the
minerals under investigation, such as down hole gamma sondes, or handheld XRF · Historic RC and RAB drilling methods have been employed at Clarke
instruments, etc). These examples should not be taken as limiting the broad and Baggy Green Prospects since 2000.
meaning of sampling.
· Pulp samples from pre-Cobra Resources' drilling were collected
· Include reference to measures taken to ensure sample representivity with intervals of 1-6 m. Samples were riffle split if dry or sub
and the appropriate calibration of any measurement tools or systems used. split using a trowel if wet.
· Aspects of the determination of mineralisation that are Material to · Pulp samples were obtained from Challenger geological services
the Public Report. using a combination of logging and geochemical selection criteria. Samples
pulled from storage were re-pulverised at the laboratory prior to further
· In cases where 'industry standard' work has been done this would be analysis.
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m
samples from which 3 kg was pulverised to produce a 30 g charge for fire 2021 - onward
assay'). In other cases more explanation may be required, such as where there
is coarse gold that has inherent sampling problems. Unusual commodities or · Sampling during Cobra Resources 2022 aircore ("AC") drilling
mineralisation types (eg submarine nodules) may warrant disclosure of detailed programme at all Prospects were obtained through AC drilling methods.
information.
· 2 m samples were collected in 20l buckets via a rig mounted
cyclone. An aluminum scoop was used to collect a 2-4 kg sub sample from each
bucket. Samples were taken from the point of collar, but only samples from the
commencement of saprolite were selected for analysis.
· Samples submitted to the Genalysis Intertek Laboratories,
Adelaide and pulverised to produce the 25g fire assay charge and 4 acid digest
sample.
· A summary of previous RC drilling at the Wudinna Project is
outlined in the Cobra Resources' RNS number 7923A from 7 February 2022.
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary Pre 2021
air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or
standard tube, depth of diamond tails, face-sampling bit or other type, · Drill methods include AC, RH and RAB in unconsolidated regolith
whether core is oriented and if so, by what method, etc). and aircore hammer in hard rock. Some shallow RC holes have been drilled in
place of AC and RAB, a single diamond drillhole has been incorporated in the
estimate.
2021- onward
· Drilling completed by McLeod Drilling Pty Ltd using 75.7 mm NQ
air core drilling techniques from an ALMET Aircore rig mounted on a Toyota
Landcruiser 6x6 and a 200psi, 400cfm Sullair compressor.
· Slimline RC drilling was completed by Wuzdrill pty limited and
Indicator drilling services Pty Ltd using a 400D and Mantis C60R drill rigs
using a 4" hammer and 78mm drill rods.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · Sample recovery was generally good with water being intersected
results assessed. in less than 10% of the drilled holes. All samples were recorded for sample
type, quality and contamination potential and entered within a sample log.
· Measures taken to maximise sample recovery and ensure representative
nature of the samples. · In general, sample recoveries were good with 20-25 kg for each 2
m interval being recovered.
· Whether a relationship exists between sample recovery and grade and
whether sample bias may have occurred due to preferential loss/gain of · No relationships between sample recovery and grade have been
fine/coarse material. identified.
· RC drilling completed by Bullion Drilling Pty Ltd using 5 ¾"
reverse circulation drilling techniques from a Schramm T685WS rig with an
auxiliary compressor
· Sample recovery for RC was generally good with water being
intersected in 10% of the drilled holes. All samples were recorded for sample
type, quality and contamination potential and entered within a sample log.
· In general, RC sample recoveries were good with 35-50 kg for each
1 m interval being recovered.
· No relationships between sample recovery and grade have been
identified.
Logging · Whether core and chip samples have been geologically and · All drill samples were logged by an experienced geologist at the
geotechnically logged to a level of detail to support appropriate Mineral time of drilling. Lithology, colour, weathering and moisture were documented.
Resource estimation, mining studies and metallurgical studies.
· Logging is generally qualitative in nature.
· Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography. · All drill metres have been geologically logged on sample
intervals (1-2 m).
· The total length and percentage of the relevant intersections logged.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core Pre-2021
taken.
· Samples from AC, RAB and "bedrock" RC holes have been collected
· If non-core, whether riffled, tube sampled, rotary split, etc and initially as 6 m composites followed by 1 m re-splits. Many of the 1 m
whether sampled wet or dry. re-splits have been collected by riffle splitting.
· For all sample types, the nature, quality and appropriateness of the · RC samples have been collected by riffle splitting if dry, or by
sample preparation technique. trowel if wet
· Quality control procedures adopted for all sub-sampling stages to · Pulverised samples have been routinely checked for size after
maximise representivity of samples. pulverising
· Measures taken to ensure that the sampling is representative of the · Pulp samples were re- pulverised after storage to re-homogenise
in situ material collected, including for instance results for field samples prior to analysis.
duplicate/second-half sampling.
2021-onward
· Whether sample sizes are appropriate to the grain size of the
material being sampled. · The use of an aluminum scoop to collect the required 2-4 kg of
sub-sample from each 2 m 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 aluminium 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 good repeatability for rare earth elements.
· RC drill samples were sub-sampled using a cyclone rig mounted
splitter with recoveries monitored using a field spring scale.
· Manual re-splitting of RC samples through a riffle splitter was
undertaken where sample sizes exceeded 4 kg.
· RC field duplicate samples were taken nominally every 1 in 20
samples. These samples showed good repeatability for REE.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · Samples were submitted to Genalysis Intertek Laboratories,
laboratory procedures used and whether the technique is considered partial or Adelaide for preparation and analysis.
total.
· Multi element geochemistry were digested by four acid ICP-MS and
· For geophysical tools, spectrometers, handheld XRF instruments, etc, analysed for Ag, Ce, Cu, Dy, Er, Eu, Gd, Ho, La, Lu, Na, Nd, Pr, Sc, Sm, Tb,
the parameters used in determining the analysis including instrument make and Th, Tm, U, Y and Yb.
model, reading times, calibrations factors applied and their derivation, etc.
· Field gold blanks and rare earth standards were submitted at a
· Nature of quality control procedures adopted (eg standards, blanks, frequency of 1 in 50 samples.
duplicates, external laboratory checks) and whether acceptable levels of
accuracy (ie lack of bias) and precision have been established. · Field duplicate samples were submitted at a frequency of 1 in 50
samples
· Reported assays are to acceptable levels of accuracy and
precision.
· Internal laboratory blanks, standards and repeats for rare earths
indicated acceptable assay accuracy.
Verification of sampling and assaying · The verification of significant intersections by either independent · Sampling data was recorded in field books, checked upon
or alternative company personnel. digitising and transferred to database.
· The use of twinned holes. · Geological logging was undertaken digitally via the MX Deposit
logging interface and synchronised to the database at least daily during the
· Documentation of primary data, data entry procedures, data drill programme.
verification, data storage (physical and electronic) protocols.
· Compositing of assays was undertaken and reviewed by Cobra
· Discuss any adjustment to assay data. Resources staff.
· Original copies of laboratory assay data are retained digitally
on the Cobra Resources server for future reference.
· Samples have been spatially verified through the use of Datamine
and Leapfrog geological software for pre 2021 and post 2021 samples and
assays.
· Twinned drillholes from pre 2021 and post 2021 drill programmes
showed acceptable spatial and grade repeatability.
· Physical copies of field sampling books are retained by Cobra
Resources for future reference.
· Significant intercepts have been prepared by Mr Rupert Verco and
reviewed by Mr Robert Blythman.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar Pre 2021
and down-hole surveys), trenches, mine workings and other locations used in
Mineral Resource estimation. · Collar locations were pegged using DGPS to an accuracy of +/-0.5
m.
· Specification of the grid system used.
· Downhole surveys have been completed for deeper RC and diamond
· Quality and adequacy of topographic control. drillholes
· Collars have been picked up in a variety of coordinate systems
but have all been converted to MGA 94 Zone 53. Collars have been spatially
verified in the field.
· Collar elevations were historically projected to a geophysical
survey DTM. This survey has been adjusted to AHD using a Leica CS20 GNSS base
and rover survey with a 0.05 cm accuracy. Collar points have been re-projected
to the AHD adjusted topographical surface.
2021- onward
· Collar locations were initially surveyed using Google Pixel 6
mobile phone utilising the Avenza Map app. Collar points recorded with a
horizontal accuracy within 5 m.
· Collar locations were picked up using a Leica CS20 base and Rover
with an instrument precision of 0.05 cm accuracy.
· Locations are recorded in geodetic datum GDA 94 zone 53.
· No downhole surveying was undertaken on AC holes. All holes were
set up vertically and are assumed vertical.
· RC holes have been down hole surveyed using a Reflex TN-14 true
north seeking downhole survey tool.
· All surveys are corrected to MGA 94 Zone 53 within the MX Deposit
database.
· The quality and accuracy of the topographic control is considered
sufficient for the Mineral Resource estimation and classification applied.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · Drillhole spacing was designed on transects 50-80 m apart.
Drillholes generally 50-60 m apart on these transects but up to 70 m apart.
· Whether the data spacing and distribution is sufficient to establish
the degree of geological and grade continuity appropriate for the Mineral · Additional scouting holes were drilled opportunistically on
Resource and Ore Reserve estimation procedure(s) and classifications applied. existing tracks at spacings 25-150 m from previous drillholes.
· Whether sample compositing has been applied. · Regional scouting holes are drilled at variable spacings designed
to test structural concepts
· Data spacing is considered adequate for a saprolite hosted rare
earth Mineral Resource estimation.
· No sample compositing has been applied
· Drillhole spacing does not introduce any sample bias.
· The data spacing and distribution is sufficient to establish the
degree of geological and grade continuity appropriate for interpretation of
the REE mineralised horizon and the classification applied.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · The REE mineralisation is expected to be controlled by vertical
possible structures and the extent to which this is known, considering the weathering profiles.
deposit type.
· Vertical drill holes are expected to be perpendicular to rare earth
· If the relationship between the drilling orientation and the mineralisation.
orientation of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if material. · It is not expected that the angled RC holes have introduced any
bias to the rare earth mineralisation interpretation.
· Drilling results are presented as true width.
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 are a NATA (National
Association of Testing Authorities) accredited laboratory, recognition of
their analytical competence.
Appendix 2: Section 2 Reporting of Exploration Results
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including · RC drilling occurred on EL 6131, currently owned 100% by Peninsula
agreements or material issues with third parties such as joint ventures, Resources limited, a wholly owned subsidiary of Andromeda Metals Limited.
partnerships, overriding royalties, native title interests, historical sites,
wilderness or national park and environmental settings. · Alcrest Royalties Australia Pty Ltd retains a 1.5% NSR royalty over
future mineral production from licenses EL6001, EL5953, EL6131, EL6317 and
· The security of the tenure held at the time of reporting along with EL6489.
any known impediments to obtaining a licence to operate in the area.
· Baggy Green, Clarke, Laker and the IOCG targets are located within
Pinkawillinnie Conservation Park. Native Title Agreement has been negotiated
with the NT Claimant and has been registered with the SA Government.
· Aboriginal heritage surveys have been completed over the Baggy Green
Prospect area, with no sites located in the immediate vicinity.
· A Native Title Agreement is in place with the relevant Native Title
party.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · On-ground exploration completed prior to Andromeda Metals' work was
limited to 400 m spaced soil geochemistry completed by Newcrest Mining Limited
over the Barns prospect.
· Other than the flying of regional airborne geophysics and coarse
spaced ground gravity, there has been no recorded exploration in the vicinity
of the Baggy Green deposit prior to Andromeda Metals' work.
Geology · Deposit type, geological setting and style of mineralisation. · The gold and REE deposits are considered to be related to the
structurally controlled basement weathering of epidote- pyrite alteration
related to the 1590 Ma Hiltaba/GRV tectonothermal event.
· Mineralisation has a spatial association with mafic
intrusions/granodiorite alteration and is associated with metasomatic
alteration of host rocks. Epidote alteration associated with gold
mineralisation is REE enriched and believed to be the primary source.
· Rare earth minerals occur within the saprolite horizon. XRD analysis
by the CSIRO identifies kaolin and montmorillonite as the primary clay phases.
· SEM analysis identified REE bearing mineral phases in hard rock:
· Zircon, titanite, apatite, andradite and epidote.
· SEM analyses identifies the following secondary mineral phases in
saprock:
· Monazite, bastanite, allanite and rutile.
· Elevated phosphates at the base of saprock do not correlate to rare
earth grade peaks.
· Upper saprolite zones do not contain identifiable REE mineral phases,
supporting that the REEs are adsorbed to clay particles.
· Acidity testing by Cobra Resources supports that REDOX chemistry may
act as a catalyst for Ionic and Colloidal adsorption.
· REE mineral phase 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. · No maximum/ minimum grade cuts have been applied.
· Where aggregate intercepts incorporate short lengths of high grade · No metal equivalent values have been calculated.
results and longer lengths of low grade results, the procedure used for such
aggregation should be stated and some typical examples of such aggregations · Rare earth element analyses were originally reported in elemental
should be shown in detail. form and have been converted to relevant oxide concentrations in line with
industry standards. Conversion factors tabulated below:
· The assumptions used for any reporting of metal equivalent values
Element Oxide Factor
should be clearly stated. Cerium CeO(2) 1.2284
Dysprosium Dy(2)O(3) 1.1477
Erbium Er(2)O(3) 1.1435
Europium Eu(2)O(3) 1.1579
Gadolinium Gd(2)O(3) 1.1526
Holmium Ho(2)O(3) 1.1455
Lanthanum La(2)O(3) 1.1728
Lutetium Lu(2)O(3) 1.1371
Neodymium Nd(2)O(3) 1.1664
Praseodymium Pr(6)O(11) 1.2082
Scandium Sc(2)O(3) 1.5338
Samarium Sm(2)O(3) 1.1596
Terbium Tb(4)O(7) 1.1762
Thulium Tm(2)O(3) 1.1421
Yttrium Y(2)O(3) 1.2699
Ytterbium Yb(2)O(3) 1.1387
· The reporting of REE oxides is done so in accordance with industry
standards with the following calculations applied:
· TREO = La(2)O(3) + CeO(2) + Pr(6)O(11) + Nd(2)O(3) + Sm(2)O(3) +
Eu(2)O(3) + Gd(2)O(3) + Tb(4)O(7) + Dy(2)O(3) + Ho(2)O(3) + Er(2)O(3) +
Tm(2)O(3) + Yb(2)O(3) + Lu(2)O(3) + Y(2)O(3)
· CREO = Nd(2)O(3) + Eu(2)O(3) + Tb(4)O(7) + Dy(2)O(3) + Y(2)O(3)
· LREO = La(2)O(3) + CeO(2) + Pr(6)O(11) + Nd(2)O(3)
· HREO = Sm(2)O(3) + Eu(2)O(3) + Gd(2)O(3) + Tb(4)O(7) + Dy(2)O(3)
+ Ho(2)O(3) + Er(2)O(3) + Tm(2)O(3) + Yb(2)O(3) + Lu(2)O(3) + Y(2)O(3)
· NdPr = Nd(2)O(3) + Pr(6)O(11)
· TREO-Ce = TREO - CeO(2)
· % Nd = Nd(2)O(3)/ TREO
· %Pr = Pr(6)O(11)/TREO
· %Dy = Dy(2)O(3)/TREO
· %HREO = HREO/TREO
· %LREO = LREO/TREO
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · Preliminary results support unbiased testing of mineralised
Exploration Results. structures.
· If the geometry of the mineralisation with respect to the drill hole · Previous holes have been drilled in several orientations due to the
angle is known, its nature should be reported. unknown nature of mineralisation.
· If it is not known and only the down hole lengths are reported, there · Most intercepts are vertical and reflect true width intercepts.
should be a clear statement to this effect (eg 'down hole length, true width
not known'). · Exploration results are not being reported for the Mineral Resource
area.
Diagrams · Appropriate maps and sections (with scales) and tabulations of · Relevant diagrams have been included in the announcement.
intercepts should be included for any significant discovery being reported
These should include, but not be limited to a plan view of drill hole collar · Exploration results are not being reported for the Mineral Resources
locations and appropriate sectional views. area.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · Not applicable - Mineral Resource and Exploration Target are defined.
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration · Exploration results are not being reported for the Mineral Resource
Results. area.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · Refer to previous announcements listed in RNS for reporting of REE
reported including (but not limited to): geological observations; geophysical results 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 Resources to Indicated Resources is planned.
· Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.
· The reporting of REE oxides is done so in accordance with industry
standards with the following calculations applied:
· TREO = La(2)O(3) + CeO(2) + Pr(6)O(11) + Nd(2)O(3) + Sm(2)O(3) +
Eu(2)O(3) + Gd(2)O(3) + Tb(4)O(7) + Dy(2)O(3) + Ho(2)O(3) + Er(2)O(3) +
Tm(2)O(3) + Yb(2)O(3) + Lu(2)O(3) + Y(2)O(3)
· CREO = Nd(2)O(3) + Eu(2)O(3) + Tb(4)O(7) + Dy(2)O(3) + Y(2)O(3)
· LREO = La(2)O(3) + CeO(2) + Pr(6)O(11) + Nd(2)O(3)
· HREO = Sm(2)O(3) + Eu(2)O(3) + Gd(2)O(3) + Tb(4)O(7) + Dy(2)O(3)
+ Ho(2)O(3) + Er(2)O(3) + Tm(2)O(3) + Yb(2)O(3) + Lu(2)O(3) + Y(2)O(3)
· NdPr = Nd(2)O(3) + Pr(6)O(11)
· TREO-Ce = TREO - CeO(2)
· % Nd = Nd(2)O(3)/ TREO
· %Pr = Pr(6)O(11)/TREO
· %Dy = Dy(2)O(3)/TREO
· %HREO = HREO/TREO
· %LREO = LREO/TREO
Relationship between mineralisation widths and intercept lengths
· These relationships are particularly important in the reporting of
Exploration Results.
· If the geometry of the mineralisation with respect to the drill hole
angle is known, its nature should be reported.
· If it is not known and only the down hole lengths are reported, there
should be a clear statement to this effect (eg 'down hole length, true width
not known').
· Preliminary results support unbiased testing of mineralised
structures.
· Previous holes have been drilled in several orientations due to the
unknown nature of mineralisation.
· Most intercepts are vertical and reflect true width intercepts.
· Exploration results are not being reported for the Mineral Resource
area.
Diagrams
· Appropriate maps and sections (with scales) and tabulations of
intercepts should be included for any significant discovery being reported
These should include, but not be limited to a plan view of drill hole collar
locations and appropriate sectional views.
· Relevant diagrams have been included in the announcement.
· Exploration results are not being reported for the Mineral Resources
area.
Balanced reporting
· Where comprehensive reporting of all Exploration Results is not
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration
Results.
· Not applicable - Mineral Resource and Exploration Target are defined.
· Exploration results are not being reported for the Mineral Resource
area.
Other substantive exploration data
· Other exploration data, if meaningful and material, should be
reported including (but not limited to): geological observations; geophysical
survey results; geochemical survey results; bulk samples - size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.
· Refer to previous announcements listed in RNS for reporting of REE
results 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 Resources to Indicated Resources is planned.
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