REG - Cobra Resources PLC - Wudinna Project Update
09/05/2023 07:15
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RNS Number : 6719Y Cobra Resources PLC 09 May 2023
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9 May 2023
Cobra Resources plc
("Cobra" or the "Company")
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
Notice of UK Private Shareholder Reception
Cobra, a gold, rare earth and IOCG exploration company focused on the Wudinna
Project in South Australia, announces further gold results from a recent
20-hole, 2,466m Reverse Circulation ("RC") drilling programme aimed at
expanding the Company's existing gold and rare earth resources. Additionally,
the Company is pleased to announce that is has completed a dual purpose,
95-hole regional Aircore ("AC") drilling programme.
RC Drilling Highlights
· Significant resource expansion potential at the White Tank 13,000 Oz
gold resource, demonstrated by CBRC0070 which intersected 12m at 2.35 g/t gold
from 54m, including 2m at 8.5 g/t gold(1)
· Increased strike of gold mineralisation at the Clarke prospect to
over 700m and depth extensions validated through the following intersections:
o CBRC0078 intersected 1m at 1.37 g/t gold at 81m, 1m at 1.5 g/t gold at
90m, and 37m at 0.50 g/t gold from 100m, including 2m at 4.58 g/t gold from
100m
o CBRC0086 intersected 3m at 1.13 g/t gold from 123m
o CBRC0076 intersected 8m at 0.63 g/t gold from 101m, including 1m at 1.93
g/t gold from 105m
o CBRC0077 intersected 1m at 0.55 g/t gold and 4m at 0.8 g/t gold from 96m,
including 1m at 2.09 g/t gold from 99m
o CBRC0084 intersected 5m at 0.53 g/t gold from 89m and 3m at 0.41 g/t gold
from 98m
· Further shallow resource extensions to the Barns 104,000 Oz gold
resource, where:
o CBRC0072 intersected 2m at 0.69 g/t gold
o The first AC hole CBAC0092 intersected 2m at 1.00 g/t gold from 12m
· Remaining gold results for three outstanding RC holes and selected AC
holes are expected during May
· Rare earth results from selected RC holes are expected in late May
(1) Results reported at a 0.3 g/t gold cut-off, with a maximum of 2m internal
dilution with a minimum carrying grade of 0.1 g/t Au. Intersections are
reported down-hole
AC Drilling Highlights
· A total of 95 holes for 3,950m were drilled across eight prospects
with the dual purposes including:
o Confirming REDOX conditions within a significantly scalable
palaeo-drainage system that is considered highly prospective for ion-adsorbed
Rare Earth Elements ("REE") mineralisation, with reduced clays occurring
within oxidised sands and directly above weathered saprolite at both the
Boland and Bradman prospects
o Expanding the existing clay-hosted rare earth resource that complements
gold mineralisation at the Baggy Green and Clarke prospects through testing
structural extensions considered prospective for further gold and rare earth
mineralisation
o Testing further gold mineralisation east of Barns, where historical
drilling has intersected numerous shallow gold intervals, including:
§ 7m at 2.23 g/t gold from 52m, including 1m at 8.3 g/t gold from 57m
§ 6m at 1.35 g/t gold from 64m
§ 7m at 1.35 g/t gold from 64m
· AC gold and REE results are expected throughout May and June
· Selected REE samples have been sent to the University of South
Australia for both desorption testing and metallurgical optimisation studies
UK Private Shareholder Reception
Rupert Verco, Chief Executive Officer of Cobra, is visiting London this week
to attend the 121 Mining Conference. Mr Verco will be conducting a
presentation for private shareholders on Wednesday, 17 May 2023 at 10.30 a.m.
BST in Mayfair, where there will be an opportunity for Q&A discussion. A
copy of the presentation will be made available on the Company's website at
www.cobraplc.com (http://www.cobraplc.com) .
Please email cobra@vigoconsulting.com (mailto:cobra@vigoconsulting.com) to
register your attendance for the event and in order to be provided with
details of the location.
Rupert Verco, CEO of Cobra, commented:
"These results demonstrate the growth potential of Cobra's existing 211,000 Oz
gold resource at Wudinna and will contribute to a 2023 gold Mineral Resource
Estimate update. In particular, the growing strike of gold mineralisation at
the Clarke prospect has the potential to favourably contribute to the growing
resource.
We are excited by what we have potentially unveiled at the Boland and Bradman
prospects; the palaeo-drainage system is significant, interpreted to cover 65
km(2), and contains conditions favourable for easily leachable rare earths
within a geological domain that is amenable to in situ leach mining.
This dual resource project is unique in South Australia. I look forward to
having the opportunity to meet UK shareholders in person and provide a
detailed update - in particular to explain the significance of the
palaeo-drainage system - on our activities and future plans."
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 Partners LLP (Joint Broker)
Erik Woolgar +44 (0)20 7186 9952
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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(https://twitter.com/Cobra_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 Resources Plc has more than 16 years relevant
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
· "Wudinna Project Update - RC Drilling Results - Expanding Gold and
Rare Earth Occurrence
at Clarke Prospect Position Cobra for Dual Resource Expansion" dated 17
January 2023
· "Wudinna Project Update - Stage 3 Earn-In to Obtain 75% of the
Wudinna Project Achieved" dated 24 April 2023
Definitions
REO - Rare Earth Oxides
TREO - Total Rare Earth Oxides plus yttrium
MRE - Mineral Resource Estimate
Au - Gold
Ongoing work programme
The Company is executing a scope of work that is designed to advance the
Wudinna Project towards a scoping study. Key items include:
· Once all outstanding results have been received; update the existing
211,000 Oz gold MRE to incorporate over 10,000m of additional drilling across
all existing gold resources and to incorporate the gold mineralisation at the
Clarke Prospect
· Reiterative assessment of Metallurgical tests to devise a commercial
flowsheet from samples from the current resource area
· Desorption metallurgical tests from samples from the Boland and
Bradman Prospects (Palaeochannel) to determine the presence of easily
leachable IAC mineralisation
· SEM analysis of received samples to evaluate quantities of REE
mineral phases within various materials and at various sample conditions
Further Information Regarding RC Drilling Results
A total of 20 holes (2,466m) of RC drilling has been completed where:
· Three holes were drilled at the White Tank Prospect to test up-dip,
easterly extensions to the existing 13,000 Oz MRE. Mineralisation continuity
has been confirmed where:
CBRC0070 intersected 12m at 2.35 g/t Au from 54m (including 2m at 8.5 g/t from
55m) 40m east of RHBN-0248 that intersected 21m at 2.9 g/t Au from 59m
(including 6m at 7.95 g/t Au from 61m) Figure 1
o CBRC0069 intersected 9m at 0.41 g/t Au from 46 meters 80m east of RCBN-246
that intersected 3m at 0.53 g/t Au from 115m and represents the most southern
intersection at White Tank
· Four RC holes were drilled at the Barns prospect to test up-dip
extensions to the existing 104,000 Oz MRE and 10 shallow AC holes were drilled
to follow up mineralisation that lies east of the existing MRE. This has
demonstrated:
o Gold mineralisation, albeit low in grade, continues up-dip to the east of
the defined resource where drillholes CBRC0072 intersected 2m at 0.69 g/t Au
from 45m
o CBAC0092 confirms the continuity of shallow gold mineralisation at Barns
East where previous drilling has yielded:
o 7m at 2.23 g/t gold from 52m, including 1m at 8.3 g/t gold from 57m
o 6m at 1.35 g/t gold from 64m
o 7m at 1.35 g/t gold from 64m
o 5m at 1.00 g/t gold from 10m
Figure 1: Section 6,365,065mN highlighting the up-dip continuity of
mineralisation intersected in drillhole CBRC0070
Figure 2: Overview of RC drilling Results at Barns and White Tank Gold
Resources
· At Clarke, drilling has extended the strike of intersected gold
mineralisation to beyond 700m where:
o Mineralisation has been extended a further 50m to the south through:
o CBRC0075 intersecting 2m at 0.93 g/t Au from 58m and 1m at 0.56 g/t Au
from 73m
o CBRC0076 intersecting 8m at 0.63 g/t Au from 101m including 1m at 1.93 g/t
Au from 105m
o Both intersections provide robust validation of the interpretation of
mineralisation in the south of the Clarke Prospect
o Mineralisation to the north has been increased in strike by a further 50m
beyond the 2022 drilling intersection of CBRC0059 that intersected 6m at 4.15
g/t gold from 34m (including 4m at 5.74 g/t Au) through:
o CBRC0082 and intersecting 2m at 0.61 g/t Au from 137m
o CBRC0083 intersecting 1m at 0.80 g/t Au from 64m and 1m at 0.70 g/t Au
from 122m
o Down dip continuities have been validated through additional intersections
including:
o CBRC0077 intersecting 1m at 0.55 g.t Au from 91m and 4m at 0.80 g/t Au
from 96m (including 1m at 2.09 g/t Au)
o CBRC0078 intersecting 1m at 1.37 g/t Au from 81m and 1m at 1.50 g/t Au
from 90m and 37m @ 0.50 g/t Au from 100m (including 2m at 4.58 g/t Au)
o CBRC0086 intersecting 3m at 1.13 g/t Au from 123m validating the down dip
continuity of the intersection received in CBRC0050 that intersected 33m at
1.03 g/t Au from 65m that was drilled in 2021
· Results for three further holes testing a further 200m of strike to
the north are expected in the coming weeks
· REE results from selected holes aimed at increasing the footprint of
the existing 20.9Mt REE resource are expected at the end of May
· These results shall enable the Clarke Prospect to be incorporated
into an updated the MRE
Figure 3: Long section of drilling at the Clarke Prospect, demonstrating the
defined 700m of mineralised strike.
Figure 4: Plan overview of gold drill results at the Clarke Prospect
Table 1: Significant Gold intersections from the 2023 gold focused RC
drilling.
PROSPECT HOLE ID FROM (m) TO (m) INT (m) AU ppm COMMENTS
White Tank CBRC0069 46 55 9 0.41
White Tank CBRC0070 54 66 12 2.35 Including 2m at 8.5 g/t from 55m
Barns CBRC0072 40 41 1 0.40
Barns CBRC0072 45 47 2 0.69
Barns CBRC0073A 43 44 1 0.30
Clarke CBRC0075 51 52 1 0.49
Clarke CBRC0075 58 60 2 0.93
Clarke CBRC0075 73 74 1 0.56
Clarke CBRC0076 101 109 8 0.63 Inc 1m at 1.93 g/t from 105m
Clarke CBRC0077 91 92 1 0.55
Clarke CBRC0077 96 100 4 0.80 inc 1m at 2.09 from 99m
Clarke CBRC0078 81 82 1 1.37
Clarke CBRC0078 90 91 1 1.50
Clarke CBRC0078 100 137 37 0.50 inc 2m at 4.58 g/t from 100m
Clarke CBRC0082 137 139 2 0.61
Clarke CBRC0083 64 65 1 0.80
Clarke CBRC0083 122 123 1 0.70
Clarke CBRC0084 89 94 5 0.53
Clarke CBRC0084 98 101 3 0.41
Clarke CBRC0086 123 126 3 1.13
Barns CBAC0092 12 14 2 1.00
Further Information Regarding the Aircore (AC) Drilling Programme
· A total of 95 holes for 3,950m were drilled across eight prospects
including:
o Clarke North where 11 holes were drilled to test for REE resource
extensions and to test interpreted structural dilations perspective for
further gold mineralisation
o Clarke South, where 11 holes were drilled to test for extensions to both
gold mineralisation and REE resource extensions
o Grace prospect where 23 exploration holes drilled to test structures
similar to gold and REE enriched structures at the Clarke Prospect
o Baggy Green East and West where 14 holes tested demagnetised zones that
demonstrate increased saprolite horizons perspective for REE resource
extensions
o Barns East: 10 holes drilled to test and infill pervious drilling
intersecting shallow gold mineralisation that lies outside of the existing
Barns MRE. Historical intersections include:
· 7m at 2.23 g/t gold from 52m, including 1m at 8.3 g/t gold from 57m
· 6m at 1.35 g/t gold from 64m
· 7m at 1.35 g/t gold from 64m
· 5m at 1.00 g/t gold from 10m
o Bradman where 11 holes have verified the Electromagnetic interpretation of
an extensive Palaeo-drainage system with geologic conditions ideal for highly
desirable Ion Adsorbed (IAC) REEs that are expected to occur at REDOX zones
o Boland where 20 holes validate the presence of significant palaeo-drainage
system where smectite clays occur within 5-15m interbeds of oxidised and
reduced channel sands. The presence of abundant lignite (organic matter) is a
positive sign for chemical reduction and subsequent absorption of REEs
· AC gold and REE results are expected throughout May and June
· Selected REE samples have been sent to the University of South
Australia for both desorption testing and metallurgical optimisation studies
The Potential Significance of the Palaeo-Drainage System
· Mineralogical and Metallurgical analysis of clay hosted REEs at
20.9Mt MRE indicate REE mobility through the Saprolite horizon
· Where the Saprolite is highly acidic, REE grades are low with REEs
being mobilised away from their hard rock source
· Thorough the analysis of saprolite acidity, Cobra has demonstrated
that REEs are enriched at pHs 6-7 and 9-10 conditions that enhance the process
of physisorption (binging of REEs to clay particles)
· Drainage into the defined ~65km(2) Palaeo-drainage system is expected
to have mobilised REEs from saprolite weathering to zones of oxidation where
mobilised REE's bind to clays under REDOX conditions
· Should ion adsorbed REEs be defined in such a system, there is
potential for REEs to be mined via Insitu Leach methods (ISL), a very low
impact and low capital method of mining
Figure 5: EM interpretation of the 65km(2) Palaeo-drainage system defining
Aircore drilling locations, inset: drill Chips from CBAC0168 demonstrating the
horizons of the channel system
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). Gold Resources extend across EL5953 (Minnipa) and EL6131.
The tenements are held by Peninsula Resources, a subsidiary of Andromeda
Metals. In April 2023, the Company announced its 75% earn-in had been
recognised by Andromeda Metals under the terms of the Wudinna Heads of
Agreement.
Figure 6: 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 have 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 clay hosted 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 7: Proposed geological model for gold and REE mineralisation at the
Clarke and Baggy Green prospects
Table 2: Drillhole survey details
HOLE ID EASTING NORTHING ELEVATION DIP AZI EOH
CBRC0068 542389.8 6365026.5 127.6 -60 135 108
CBRC0069 542451.9 6365038.4 128.5 -60 135 80
CBRC0070 542496.4 6365064.6 129.9 -60 135 120
CBRC0071 542417.7 6366119.7 122.1 -68 90 120
CBRC0072 542427.3 6366074.7 123.4 -68 90 90
CBRC0073a 542428.9 6366025.2 124.4 -68 90 78
CBRC0074 542438.8 6365970.8 125.2 -68 90 90
CBRC0075 547183.2 6364873.3 108.2 -60 190 90
CBRC0076 547213.1 6364932.5 108.7 -60 190 154
CBRC0077 547052.9 6364997.6 108.1 -70 180 150
CBRC0078 546999.4 6364960.5 109.3 -70 180 138
CBRC0079 546734.8 6365441.3 106.4 -65 230 132
CBRC0080 546743.9 6365364.7 105.9 -65 230 120
CBRC0081 546804.9 6365337.0 107.1 -65 230 147
CBRC0082 546767.5 6365308.7 108.0 -65 230 150
CBRC0083 546804.4 6365252.1 108.2 -65 230 150
CBRC0084 546864.4 6365286.1 105.9 -65 240 150
CBRC0085 546948.3 6365107.2 106.8 -65 190 120
CBRC0086 546845.7 6365077.6 108.5 -65 70 138
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 - 2022
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.
2023
· Samples were collected via a Metzke cone splitter mounted to the
cyclone. 1m samples were managed through chute and butterfly valve to produce
a 2-4 kg sample. Samples were taken from the point of collar, but only samples
from the commencement of saprolite were selected for analysis.
· Samples submitted to the Burea Veritas Laboratories, Adelaide,
and pulverised to produce the 50 g fire assay charge.
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- 2022
· 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.
2023
· Drilling completed by Bullion Drilling Pty Ltd using 5 ¾"
reverse circulation drilling techniques from a Schramm T685WS rig with an
auxiliary compressor.
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 programs
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 · RC drillholes have been drilled between -60 and -75 degrees at
possible structures and the extent to which this is known, considering the orientations interpreted to appropriately intersect gold mineralisation
deposit type.
· Gold results are not presented as true width but are not considered
· If the relationship between the drilling orientation and the to present any down-dip bias.
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. 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 and BV 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.
· Palaeo drainage has been interpreted from historic drilling and
re-interpretation of EM data that enables the hardrock surface to be modelled.
· The conditions within the interpreted Palaeo system are considered
supportive of ionic REE mineralisation.
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 · Gold results are reported to a 0.3 g/t cut-off with a maximum of 2m
should be shown in detail. internal dilution with a minimum grade of 0.1 g/t Au.
· The assumptions used for any reporting of metal equivalent values · Rare earth element analyses were originally reported in elemental
should be clearly stated. 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 = 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, 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, 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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