THIS ANNOUNCEMENT CONTAINS INSIDE
INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU
WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE
(AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON
THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS
DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC
DOMAIN.
NOT FOR RELEASE, PUBLICATION OR
DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN OR
INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF
SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH
JURISDICTION.
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,
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 include1:
o 1m
at 708 ppm U3O8 from 66m (IR1436)
o 3m
at 340 ppm U3O8 from 72m, including 1m at
420ppm U3O8 from 73m (IR1435)
o 1m
at 209 ppm U3O8 from 68m (IR1448)
o 0.95m at 617 ppm eU3O8 from 69.95m
(IR1065)
·
Historical plans and reports reference gamma eU3O8
grades of up to 1,000 ppm2. 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
U3O8 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-front2
·
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
~17km2. 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
Rupert Verco (Australia)
Dan Maling (UK)
|
via Vigo
Consulting
+44 (0)20
7390 0234
|
|
SI
Capital Limited (Joint Broker)
Nick Emerson
Sam Lomanto
|
+44
(0)1483 413 500
|
|
Global Investment Strategy (Joint Broker)
James Sheehan
|
+44 (0)20
7048 9437
james.sheehan@gisukltd.com
|
|
Vigo
Consulting (Financial Public Relations)
Ben Simons
Kendall Hill
|
+44 (0)20
7390 0234
cobra@vigoconsulting.com
|
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 km2, and other
nearby tenement rights totalling 2,941 km2,
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 km2 exploration tenement
in northern Tasmania which is also considered highly prospective
for ionic rare earth mineralisation.
Cobra's Wudinna tenements also
contain extensive orogenic gold mineralisation and are
characterised by potentially open-pitable, high-grade gold
intersections, with ready access to infrastructure. Cobra has 22
orogenic gold targets outside of the current 279,000 Oz gold JORC
Mineral Resource Estimate, and several iron oxide copper gold
(IOCG) targets.
Follow us on social media:
LinkedIn: https://www.linkedin.com/company/cobraresourcesplc
Twitter: https://twitter.com/Cobra_Resources
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https://cobraplc.com/news/
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 specific
specialised industry standard measurement tools appropriate to the
minerals under investigation, such as down hole gamma sondes, or
handheld XRF instruments, etc). These examples should not be taken
as limiting the broad meaning of sampling.
·
Include
reference to measures taken to ensure sample representivity and the
appropriate calibration of any measurement tools or systems
used.
·
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.
|
·
Rotary mud and aircore drilling were used to
obtain 1m sample intervals.
·
A number of core holes were drilled to validate
aircore results and estimate gamma radiation
disequilibrium.
·
Carpentaria Exploration Company Pty Ltd conducted
drilling between 1979 - 1984.
|
|
Drilling
techniques
|
·
Drill type (eg
core, reverse circulation, open-hole hammer, rotary 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, whether core is oriented and if so, by what method,
etc).
|
· All
drillholes were drilled at 90 degrees (vertical) due to the
flat-lying nature of mineralisation.
· 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 results
assessed.
·
Measures taken
to maximise sample recovery and ensure representative nature of the
samples.
·
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.
|
· Reports imply that samples obtained by aircore drilling were
considered superior owing to circulation problems encountered with
rotary mud drilling.
· 1m
sample composites are considered to provide reasonable
representation of the style of mineralisation.
|
|
Logging
|
·
Whether core and
chip samples have been geologically and geotechnically logged to a
level of detail to support appropriate Mineral Resource estimation,
mining studies and metallurgical studies.
·
Whether logging
is qualitative or quantitative in nature. Core (or costean,
channel, etc) photography.
·
The total length
and percentage of the relevant intersections
logged.
|
· Drillhole samples were logged by a onsite geologist and
correlated to downhole geophysical logs that demonstrate
correlation between lithology units and gamma peaks.
· Oxidation state and the presence of reductants were
logged
· Sample
loss was recorded
· 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
taken.
·
If non-core,
whether riffled, tube sampled, rotary split, etc and whether
sampled wet or dry.
·
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.
|
· Limited information concerning subsampling techniques is
available.
· Twinned core holes, measured disequilibrium factors and
duplicate sampling imply quality control.
|
|
Quality of assay data and
laboratory tests
|
·
The nature,
quality and appropriateness of the assaying and laboratory
procedures used and whether the technique is considered partial or
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.
|
· Select
samples were sent to COMLABS for XRF and AAS analysis. Sample
suites were variable across submissions.
·
|
|
Verification of sampling and
assaying
|
·
The verification
of significant intersections by either independent or alternative
company personnel.
·
The use of
twinned holes.
·
Documentation of
primary data, data entry procedures, data verification, data
storage (physical and electronic) protocols.
·
Discuss any
adjustment to assay data.
|
· Significant intercepts have been reviewed by Mr Rupert Verco
and reviewed by Mr Robert Blythman (the competent
persons)
· Pulp
samples retained within the Tonsely core library have been secured
and are being re-analysed to confirm results.
|
|
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.
·
Specification of
the grid system used.
·
Quality and
adequacy of topographic control.
|
· Collar
locations have been sourced from the SARIG publicly available
dataset.
· Drill
collars were surveyed on local grids established using ensign GPS.
Coordinates have been transposed to AMG94 Zone 53.
|
|
Data spacing and
distribution
|
·
Data spacing for
reporting of Exploration Results.
·
Whether the data
spacing and distribution is sufficient to establish the degree of
geological and grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s) and
classifications applied.
·
Whether sample
compositing has been applied.
|
·
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.
·
Additional scouting holes were drilled
opportunistically on existing tracks at spacings 25-150 m from
previous drillholes.
·
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 possible
structures and the extent to which this is known, considering the
deposit type.
·
If the
relationship between the drilling orientation and the orientation
of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if
material.
|
·
Drilling was conducted at initial 500m centres and
infilled to 50m spacings. Along strike spacing was limited to track
access and the accessibility of topography.
|
|
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 agreements or
material issues with third parties such as joint ventures,
partnerships, overriding royalties, native title interests,
historical sites, wilderness or national park and environmental
settings.
·
The security of
the tenure held at the time of reporting along with any known
impediments to obtaining a licence to operate in the
area.
|
·
EL6967 & 6968 are 100% held by Lady Alice
Mines Pty Ltd, a Cobra Resources Plc company.
·
Native title agreements need to be gained before
land access by the department of Environment and Water can be
granted.
|
|
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 exploration
results including a tabulation of the following information for 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.
|
·
Plans demonstrate the location of
drillholes.
·
Coordinates can be publicly accesses through the
South Australian SARIG portal.
·
No relevant material has been excluded from this
release.
|
|
Data aggregation
methods
|
·
In reporting
Exploration Results, weighting averaging techniques, maximum and/or
minimum grade truncations (eg cutting of high grades) and cut-off
grades are usually Material and should be stated.
·
Where aggregate
intercepts incorporate short lengths of high grade results and
longer lengths of low grade results, the procedure used for such
aggregation should be stated and some typical examples of such
aggregations should be shown in detail.
·
The assumptions
used for any reporting of metal equivalent values should be clearly
stated.
|
·
Reported summary intercepts are weighted averages
based on length.
·
No maximum/ minimum grade cuts have been
applied.
·
eU3O8 grades have been calculated using a
disequilibrium factor of 1.8
|
|
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').
|
·
Holes are drilled vertically. Reported
intersections reflect true width.
|
|
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.
·
|
|
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 misIeading reporting of
Exploration Results.
|
·
All drillhole locations have been shown on
plans
·
|
|
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.
|
·
Reported results reflect publicly available
information.
|
|
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.
|
·
Re-analysis of historical drill samples is
underway. Samples shall be analysed for REE and Uranium to confirm
historical results.
·
Previous TEM surveys are being re-interpreted to
improve Palaeochannel interpretation and to identify potential
pathways of fluid oxidation.
·
Ground water sampling planned.
·
Digitization of downhole wireline logs to
re-interpret mineralized roll-fronts.
|