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.
26 November 2024
Cobra Resources
plc
("Cobra"
or the "Company")
Completion of 2nd Bench Scale
ISR Study Positions Boland Project for Even Higher Recoveries at
Lower Costs
&
£1.7M Placing to Advance
Project Towards Commercialisation
Company well financed to
execute on resource definition and in situ recovery field
testing
Cobra
(LSE: COBR), the mineral
exploration and development company advancing a potentially
world-class ionic Rare Earth Element ("REEs") discovery at its
Boland Project in South Australia, is delighted to announce it has
demonstrated exceptional permeability through a second bench scale
in situ recovery ("ISR") test from a section of core from its
Boland Project.
Permeability is a critical enabler
of ISR, and the rates achieved in this test bode well for future
productivity.
To define a scalable resource and
advance the Boland Project towards commercialisation, the Company
is pleased to announce it has raised gross proceeds of £1.7 million
through an oversubscribed two-tranche placement of an aggregate
147,826,088 new ordinary shares of 1 pence each in the capital of
the Company ("Ordinary Shares") at a price of 1.15 pence per share
as detailed below (the "Placing").
Highlights of Second Bench Scale ISR Study:
·
Ionically bound rare earth metals are not commonly
found in permeable sands amenable to in situ recovery but,
at Boland, REEs are ionically bound within
permeable sands, not impermeable clays. This unique geology enables
ISR, eliminating challenges associated with handling and processing
clay ores
·
Permeability of mineralisation is a key
productivity driver of ISR that can influence critical cost factors
such as acid consumption, wellfield design and metal
recovery
·
The second bench scale ISR study achieved the
following results:
o 121
pore volumes per day or 24.3 metres per day at 5.5 bar
pressure
o 43
pore volumes per day or 8.6 metres per day at 2.5 bar
pressure
·
As a result, the ISR bench scale study has been
completed in only 24 hours, compared to the 150 days of the first
study
·
These results suggest that the sample preparation
of the initial bench scale study impacted permeability as the
mineralised interval contained underlying saprolite. The standard
procedure involves homogenising the core sample. As a result,
saprolite was mixed within permeable ore impacting its
permeability
·
The excellent permeability observed in the second
bench scale ISR study is expected to result in improved metal
recoveries with implications for potentially lower recovery costs
than were inferred from the results of the first test - which was,
itself, successful
·
Metal recovery results from the second bench scale
ISR test which was performed with a pH 2 lixiviant are expected
within two weeks
·
Results for impurity removal and Mixed Rare Earth
Carbonate (MREC) precipitation are pending
·
Further bench scale tests will be performed on the
remainder of the mineralised intersection of the retained
core
To
view a video of the second permeability test and to learn more
about its significance, please click the following
link: https://investors.cobraplc.com/link/7eXGwy.
Webinar
Rupert Verco, Managing Director,
will host a live webinar on Tuesday, 3 December 2024 at 11 a.m. GMT
to discuss today's news. Investors and interested parties are
invited to register via the link below and submit questions ahead
of time or at any time during the live webinar.
Follow the directions on the Cobra
investor hub to register:
https://investors.cobraplc.com/webinars/15-advancing-boland-rare-earth-project-towards-commercialisation.
A recording of the webinar will be
made available on the Cobra website after the event.
Rupert Verco, Managing Director of Cobra,
commented:
"The permeability rates far exceed our internal baseline
expectations. Our initial bench scale study demonstrated the ISR
process, highlighting that high recoveries can be achieved with
low-cost inputs, but this second test scales our opportunity by an
order of magnitude.
Our strategy has been to address investment risk first which,
in the case of rare earth projects, is normally associated with the
cost of extraction. These extraordinary permeability results
further highlight the unique nature of Boland mineralisation in
this regard.
We
are grateful for today's investor support. The funds being raised
will help accelerate the development of the Boland Project where we
believe that, through materialising low-cost ISR mining, we will
demonstrate the cost competitive advantage that Boland presents
over other ionic rare earth clay projects. We will be well financed
to execute on resource definition and in situ recovery field
testing.
With consistent short-term and long-term news to be generated
from our multiple work programmes, we expect to deliver material
upside to our valued shareholders."
Placing
Cobra has raised proceeds of £1.7
million before expenses through placements of 73,311,910 ("Tranche
1 Placing Shares"), 7,992,438 ("Tranche 2 Placing Shares") and
66,521,740 ("Tranche 2 Conditional Placing Shares") new Ordinary
Shares respectively at a price of 1.15p per share, representing a
discount of approximately 11.5% to the closing price on 25 November
2024.
The Tranche 1 Placing Shares are
being issued within the Company's existing headroom and include
support by new and existing shareholders. SI Capital is acting as
lead broker, supported by Global Investment Strategy
(GIS).
Due to overwhelming support for the
Placing, the 7,992,438 Tranche 2 Placing Shares could not be
covered under the Company's existing headroom and therefore will be
issued with the publication of a secondary prospectus.
Additionally, the Company has
received commitments from the Former Lady Alice Unitholders, who
were the original vendors to Cobra of the Wudinna Gold and Rare
Earth Project in 2019, to subscribe, in cash, for the Tranche 2
Conditional Placing Shares, thereby increasing their combined
ownership of Cobra from 29.89% to 32.44%. In total, the Former Lady
Alice Unitholders have committed to invest £765,000 subject to
shareholder approval. The issue of the Tranche 2 Conditional
Placing Shares is conditional upon shareholder approval of a Rule 9
waiver for the Former Lady Alice Unitholders to increase their
aggregate holding, and the publication of a secondary
prospectus.
Participants in the Placing will
receive a warrant to subscribe for a further one new Ordinary Share
in the Company for every two shares subscribed, which may be
exercised at any time from admission of the applicable tranche of
Placing shares (detailed above) for up to two years with an
exercise price of 2.3p. In aggregate, the Company will issue
warrants over 73,913,044 new Ordinary Shares in connection with
this Placing (the "Warrants").
In due course, a circular convening
a General Meeting for the purposes of, inter alia, approving a Rule 9 waiver,
the issue of the Tranche 2 Placing Shares and the Tranche 2
Conditional Placing Shares, and the issue of the shares into which
the Warrants may convert, will be published.
Use
of Funds
Cobra's recent metallurgical
programme has demonstrated the potential to achieve high ionic
recoveries by low-cost, low impact in situ recovery. The proceeds
of the Placing will be used to rapidly advance the project
by:
·
Resource
definition: Both aircore and sonic
core drilling to support a maiden palaeochannel rare earth mineral
resource estimate (MRE)
·
Regional
exploration: Aircore drilling aimed
at testing priority palaeochannel targets prospective for ionic
rare earth mineralisation
·
Scaled ISR
testing: Increase the scale of ISR
bench scale tests at optimised conditions to produce a sufficient
quantity of mixed rare earth carbonate for off take
testing
·
In field
permeability testing: Aimed at
emulating the ISR process to replicate permeability rates achieved
at bench scale
·
Scoping
study: The exploration executed
through the above work plans will support a scoping study aimed at
defining the economics of the low-cost ISR mining
operation
Figure 1: Use of funds,
subsequent exploration plan and expected market sensitive news
flow
Admission of the Tranche 1 Placing
Shares
The Company has made applications to
the FCA and the London Stock Exchange in
connection with the admission of the Tranche 1 Placing Shares to
the Official List of the FCA and to trading on the main market of
the London Stock Exchange respectively, which is expected to occur
at 8.00 a.m. on 2 December
2024 ("Admission").
Total Voting Rights
The Company hereby notifies the
market, in accordance with the FCA's Disclosure Guidance
and Transparency Rule 5.6.1, that, on Admission, the Company's
issued share capital will consist of 799,871,460 ordinary shares, each with one
vote. The Company does not hold any ordinary shares in treasury. On
Admission, the total number of voting rights in the Company will
be 799,871,460 and this figure may be used
by shareholders as the denominator for the calculations by which
they will determine if they are required to notify their interest
in, or a change to their interest in, the Company under
the FCA's Disclosure Guidance and Transparency
Rules.
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.
Information in this announcement
relates to exploration results that have been reported in the
following announcements:
·
Wudinna Project Update: "ISR bench scale study delivers exceptional
results", dated 1 October 2024
·
Wudinna Project Update: "ISR bench scale update - Exceptionally
high recoveries with low impurities and low acid consumption; on
path to disrupt global supply
of heavy rare earths", dated 28 August
2024
·
Wudinna Project Update: "ISR bench scale update -Further metallurgical success at world
leading ISR rare earth project", dated 11
July 2024
·
Wudinna Project Update: "ISR bench scale update - Exceptional head grades
revealed", dated 18 June 2024
·
Wudinna Project Update: "Re-Assay Results Confirm High Grades Over Exceptional Scale at
Boland", dated 26 April 2024
·
Wudinna Project Update: "Drilling results from
Boland Prospect", dated 25 March 2024
·
Wudinna Project Update: "Historical Drillhole
Re-Assay Results", dated 27 February 2024
·
Wudinna Project Update: "Ionic Rare Earth
Mineralisation at Boland Prospect", dated 11 September
2023
·
Wudinna Project Update: "Exceptional REE Results
Defined at Boland", dated 20 June 2023
Competent Persons Statement
Information in this announcement has
been assessed by Mr Rupert Verco, a Fellow of the Australasian
Institute of Mining and Metallurgy. Mr Verco is an employee of
Cobra and has more than 16 years' industry experience which is
relevant to the style of mineralisation, deposit type, and 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 of JORC.
This includes 11 years of Mining, Resource Estimation and
Exploration.
About Cobra
In 2023, Cobra discovered a rare
earth deposit with the potential to re-define the cost of rare
earth production. The highly scalable Boland ionic rare earth
discovery at Cobra's Wudinna Project in South Australia's Gawler
Craton is Australia's only rare earth project amenable for in situ
recovery ("ISR") mining - a low cost, low disturbance method. Cobra
is focused on de-risking the investment value of the discovery by
proving ISR as the preferred mining method which would eliminate
challenges associated with processing clays and provide Cobra with
the opportunity to define a low-cost pathway to
production.
Cobra's Wudinna tenements also
contain extensive orogenic gold mineralisation, including a 279,000
Oz gold JORC Mineral Resource Estimate, characterised by low levels
of over-burden, amenable to open pit mining.
Regional map showing Cobra's tenements in the heart of the
Gawler Craton
Follow us on social media:
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https://twitter.com/Cobra_Resources
Engage with us by asking questions,
watching video summaries and seeing what other shareholders have to
say. Navigate to our Interactive Investor hub here:
https://investors.cobraplc.com/
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Appendices
Table 1: Head Assay data for
samples from CBSC0002 Zone 3 used in the Permeability
Study
|
Sample ID
|
m From
|
m To
|
TREO ppm
|
Nd2O3 ppm
|
Pr6O11 ppm
|
Tb2O3 ppm
|
Dy2O3 ppm
|
MREO ppm
|
HREO ppm
|
Used in Permeability
Study
|
|
141245
|
26.50
|
26.60
|
630
|
85
|
29
|
2
|
15
|
132
|
166
|
Study
2
|
|
141246
|
26.60
|
26.70
|
1,559
|
212
|
78
|
5
|
30
|
324
|
325
|
Study
2
|
|
141247
|
26.70
|
26.80
|
3,580
|
554
|
168
|
14
|
81
|
817
|
877
|
Planned
(study 3)
|
|
141248
|
26.80
|
26.90
|
4,714
|
734
|
223
|
18
|
107
|
1082
|
1130
|
Planned
(study 3)
|
|
141249
|
26.90
|
26.95
|
2,973
|
475
|
131
|
13
|
73
|
691
|
812
|
Planned
(study 3)
|
|
141250
|
26.95
|
27.00
|
3,365
|
544
|
149
|
16
|
89
|
798
|
957
|
Planned
(study 3)
|
|
141251
|
27.00
|
27.10
|
2,067
|
293
|
88
|
8
|
45
|
433
|
490
|
Planned
(study 4)
|
|
141252
|
27.10
|
27.20
|
1,322
|
166
|
54
|
4
|
24
|
248
|
270
|
Planned
(study 4)
|
|
141253
|
27.20
|
27.30
|
1,123
|
135
|
47
|
3
|
18
|
203
|
213
|
Planned
(study 4)
|
|
141254
|
27.30
|
27.40
|
918
|
112
|
39
|
3
|
15
|
169
|
171
|
|
|
141255
|
27.40
|
27.50
|
485
|
67
|
20
|
2
|
12
|
100
|
133
|
|
Appendix 1: JORC Code, 2012
Edition - Table 1
|
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.
|
2024
SONIC
· Core
was scanned by a SciAps X555 pXRF to determine sample intervals.
Intervals through mineralized zones were taken at 10cm. Through
waste, sample intervals were lengthened to 50cm. Core was halved by
knife cutting. XRF scan locations were taken on an inner surface of
the core to ensure readings were taken on fresh sample
faces.
Full core samples were submitted to
Australian Nuclear Science and Technology Organisation (ANSTO),
Sydney for XRF analysis and to ALS Geochemistry Laboratory
(Brisbane) on behalf of ANSTO for lithium tetraborate digest
ICP-MS. The core was split in half along the vertical axis, and one
half further split into 10 even fractions along the length of the
half-core. Additional sub-sampling, homogenisation and drying steps
were performed to generate ~260 g (dry equivalent) samples for head
assay according to the laboratory internal protocols.
|
|
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).
|
2024
· Sonic
Core drilling completed Star Drilling using 4" core with a SDR12
drill rig. Holes were reamed to 6" or 8" to enable casing and
screens to be installed
|
|
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.
|
Aircore & RC
· Sample
recovery was generally good. All samples were recorded for sample
type, quality and contamination potential and entered within a
sample log.
· In
general, sample recoveries were good with 10 kg for each 1 m
interval being recovered from AC drilling.
· No
relationships between sample recovery and grade have been
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. 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.
Sonic Core
· Sample
recovery is considered excellent.
|
|
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.
|
Sonic Core
· Logging was carried out in detail, determining lithology and
clay/ sand content. Logging intervals were lithology based with
variable interval lengths.
· All
core drilled has been lithologically logged.
|
|
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.
|
Sonic Drilling
· Field
duplicate samples were taken nominally every 1 in 25 samples where
the sampled interval was quartered.
· Blanks
and Standards were submitted every 25 samples
· Half
core samples were taken where lab geochemistry sample were
taken.
· In
holes where column leach test samples have been submitted, full
core samples have been submitted over the test areas.
|
|
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.
|
Sample Characterisation Test Work
performed by the Australian Nuclear Science and Technology
Organisation (ANSTO)
· Full
core samples were submitted to Australian Nuclear Science and
Technology Organisation (ANSTO), Sydney for preparation and
analysis. The core was split in half along the vertical axis, and
one half further split into 10 even fractions along the length of
the half-core. Additional sub-sampling, homogenisation and drying
steps were performed to generate ~260 g (dry equivalent) samples
for head assay according to the laboratory internal
protocols.
· Multi
element geochemistry of solid samples were analysed at ANSTO
(Sydney) by XRF for the major gangue elements Al, Ca, Fe, K, Mg,
Mn, Na, Ni, P, Si, S, and Zn.
· Multi
element geochemistry of solid samples were additionally analysed at
ALS Geochemistry Laboratory (Brisbane) on behalf of ANSTO by
lithium tetraborate digest ICP-MS and analysed for Ce, Dy,
Er, Eu, Gd, Ho, La, Lu, Nd, Pr, Sm, Tb, Th, Tm, U, Y and
Yb.
· Reported assays are to acceptable levels of accuracy and
precision.
· Internal laboratory blanks, standards and repeats for rare
earths indicated acceptable assay accuracy.
· Samples retained for metallurgical analysis were immediately
vacuum packed, nitrogen purged and refrigerated.
· These
samples were refrigerated throughout transport.
Metallurgical Leach Test Work
performed by the Australian Nuclear Science and Technology
Organisation (ANSTO)
·
ANSTO laboratories prepared ~80g samples for
diagnostic leaches, a 443g sample for a slurry leach and a 660g
sample for a column leach. Sub-samples were prepared from full
cores according to the laboratory internal
protocols. Diagnostic and slurry leaching were carried out in
baffled leach vessels equipped with an overhead stirrer and
applying a 0.5 M (NH4)2SO4 lixiviant
solution, adjusted to the select pH using H2SO4.
·
1 M H2SO4 was utilised to maintain the test pH for
the duration of the test, if necessary. The acid addition was
measured.
·
Thief liquor samples were taken
periodically.
·
At the completion of each test, the final pH was
measured, the slurry was vacuum filtered to separate the primary
filtrate.
·
The thief samples and primary filtrate were
analysed as follows:
o ICP-MS for Ce, Dy, Er, Eu, Gd, Ho, La, Lu, Mn, Nd, Pb, Pr, Sc,
Sm, Tb, Th, Tm, U, Y, Yb.
o ICP-OES for Al, Ca, Fe, K, Mg, Mn, Na, Si.
·
The water wash was stored but not
analysed.
·
Column leaching was carried out in horizontal
leaching column. The column was pressurised with nitrogen to 6 bar
and submerged in a temperature controlled bath.
·
A 0.5 M (NH4)2SO4
lixiviant solution, adjusted to the select pH using H2SO4 was fed
to the column at a controlled flowrate.
·
PLS collected from the end of the column was
weighed, the SH and pH measured and the free acid concentration
determined by titration. Liquor samples were taken from the
collected PLS and analysed as follows:
o ICP-MS for Ce, Dy, Er, Eu, Gd, Ho, La, Lu, Mn, Nd, Pb, Pr, Sc,
Sm, Tb, Th, Tm, U, Y, Yb.
o ICP-OES for Al, Ca, Fe, K, Mg, Mn, Na, Si.
·
The column leach test has been completed. Assays
of the column are being taken to confirm PLS assays
|
|
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.
|
· Sampling data was recorded in field books, checked upon
digitising and transferred to database.
· Geological logging was undertaken digitally via the MX Deposit
logging interface and synchronised to the database at least daily
during the drill programme.
· Compositing of assays was undertaken and reviewed by Cobra
Resources staff.
· Original copies of laboratory assay data are retained
digitally on the Cobra Resources server for future
reference.
· Samples have been spatially verified through 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.
· Elevated pXRF grades were checked and re-tested where
anomalous. pXRF grades are semi quantitative.
|
|
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.
|
Pre 2021
· Collar
locations were pegged using DGPS to an accuracy of +/-0.5
m.
· Downhole surveys have been completed for deeper RC and diamond
drillholes
· Collars have been picked up in a variety of coordinate systems
but have all been converted to MGA 94 Zone 53. Collars have been
spatially verified in the field.
· Collar
elevations were historically projected to a geophysical survey DTM.
This survey has been adjusted to AHD using a Leica CS20 GNSS base
and rover survey with a 0.05 cm accuracy. Collar points have been
re-projected to the AHD adjusted topographical surface.
2021-onward
· Collar
locations were initially surveyed using a mobile phone utilising
the Avenza Map app. Collar points recorded with a GPS horizontal
accuracy within 5 m.
· RC
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 or Reflex multishot
· Downhole surveys were assessed for quality prior to export of
data. Poor quality surveys were downgraded in the database to be
excluded from export.
· All
surveys are corrected to MGA 94 Zone 53 within the MX Deposit
database.
· Cased
collars of sonic drilling shall be surveyed before a mineral
resource estimate
|
|
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
·
Sonic core holes were drilled at ~20m spacings in
a wellfield configuration based on assumed permeability potential
of the intersected geology.
|
|
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.
|
·
Aircore and Sonic drill holes are
vertical.
|
|
Sample
security
|
·
The measures
taken to ensure sample security.
|
·
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.
·
Refrigerated transport of samples to Sydney was
undertaken by a competent independent contractor. Samples were
double bagged, vacuum sealed, nitrogen purged and placed within PVC
piping.
·
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 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 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.
|
·
RC drilling occurred on EL 6131, currently owned
100% by Peninsula Resources limited, a wholly owned subsidiary of
Andromeda Metals Limited.
·
Alcrest Royalties Australia Pty Ltd retains a 1.5%
NSR royalty over future mineral production from licenses EL6001,
EL5953, EL6131, EL6317 and EL6489.
·
Baggy Green, Clarke, Laker and the IOCG targets
are located within Pinkawillinnie Conservation Park. Native Title
Agreement has been negotiated with the NT Claimant and has been
registered with the SA Government.
·
Aboriginal heritage surveys have been completed
over the Baggy Green Prospect area, with no sites located in the
immediate vicinity.
·
A Native Title Agreement is in place with the
Barngarla People.
|
|
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.
·
Paleochannel uranium exploration was undertaken by
various parties in the 1980s and the 2010s around the Boland
Prospect. Drilling was primarily rotary mud with downhole
geophysical logging the primary interpretation method.
|
|
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
pH chemistry may act as a catalyst for Ionic and Colloidal
adsorption.
·
REE mineral phase change with varying saprolite
acidity and REE abundances support that a component of REE bursary
is adsorbed to clays.
·
Palaeo drainage has been interpreted from historic
drilling and re-interpretation of EM data that has generated a top
of basement model.
·
Ionic REE mineralisation is confirmed through
metallurgical desorption testing where high recoveries are achieved
at benign acidities (pH4-3) at ambient temperature.
·
Ionic REE mineralisation occurs in reduced clay
intervals that contact both saprolite and permeable sand units.
Mineralisation contains variable sand quantities that yield
permeability and promote insitu recovery potentail
|
|
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.
|
·
Exploration results being reported represent a
small portion of the Boland target area. Coordinates for Wellfield
drill holes are presented in Table 3.
|
|
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.
·
No metal equivalent values have been
calculated.
·
Gold results are reported to a 0.3 g/t cut-off
with a maximum of 2m internal dilution with a minimum grade of 0.1
g/t Au.
·
Rare earth element analyses were originally
reported in elemental form and have been converted to relevant
oxide concentrations in line with industry standards. Conversion
factors tabulated below:
·
|
Element
|
Oxide
|
Factor
|
|
Cerium
|
CeO2
|
1.2284
|
|
Dysprosium
|
Dy2O3
|
1.1477
|
|
Erbium
|
Er2O3
|
1.1435
|
|
Europium
|
Eu2O3
|
1.1579
|
|
Gadolinium
|
Gd2O3
|
1.1526
|
|
Holmium
|
Ho2O3
|
1.1455
|
|
Lanthanum
|
La2O3
|
1.1728
|
|
Lutetium
|
Lu2O3
|
1.1371
|
|
Neodymium
|
Nd2O3
|
1.1664
|
|
Praseodymium
|
Pr6O11
|
1.2082
|
|
Scandium
|
Sc2O3
|
1.5338
|
|
Samarium
|
Sm2O3
|
1.1596
|
|
Terbium
|
Tb4O7
|
1.1762
|
|
Thulium
|
Tm2O3
|
1.1421
|
|
Yttrium
|
Y2O3
|
1.2699
|
|
Ytterbium
|
Yb2O3
|
1.1387
|
·
The reporting of REE oxides is done so in
accordance with industry standards with the following calculations
applied:
· TREO =
La2O3 + CeO2 +
Pr6O11 + Nd2O3 +
Sm2O3 + Eu2O3 +
Gd2O3 + Tb4O7 +
Dy2O3 + Ho2O3 +
Er2O3 + Tm2O3 +
Yb2O3 + Lu2O3 +
Y2O3
· CREO =
Nd2O3 + Eu2O3 +
Tb4O7 + Dy2O3 +
Y2O3
· LREO =
La2O3 + CeO2 +
Pr6O11 +
Nd2O3
· HREO =
Sm2O3 + Eu2O3 +
Gd2O3 + Tb4O7 +
Dy2O3 + Ho2O3 +
Er2O3 + Tm2O3 +
Yb2O3 + Lu2O3 +
Y2O3
· MREO
= Nd2O3 +
Pr6O11 +
Tb4O7 +
Dy2O3
· NdPr =
Nd2O3 +
Pr6O11
· TREO-Ce = TREO - CeO2
· % Nd =
Nd2O3/ TREO
· % Pr =
Pr6O11/TREO
· % Dy =
Dy2O3/TREO
· % HREO
= HREO/TREO
· % LREO
= LREO/TREO
· XRF
results are used as an indication of potential grade only. Due to
detection limits only a combined content of Ce, La, Nd, Pr & Y
has been used. XRF grades have not been converted to
oxide.
|
|
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').
|
·
All reported intercepts at Boland 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
|
|
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.
|
·
The metallurgical testing reported in this
announcement represents the second bench scale ISR study performed
on a 20cm section of mineralized core
·
Future metallurgical testing will focus on
producing PLS under leach conditions to conduct downstream
bench-scale studies for impurity removal and product
precipitation.
·
Hydrology, permeability and mineralogy studies are
being performed on core samples.
·
Installed wells are being used to capture
hydrology base line data to support a future infield pilot
study.
·
Trace line tests shall be performed to emulate
bench scale pore volumes.
|
Table 2: Drillhole
coordinates
|
Prospect
|
Hole number
|
Grid
|
Northing
|
Easting
|
Elevation
|
|
Boland
|
CBSC0001
|
GDA94 /
MGA zone 53
|
6365543
|
534567
|
102.9
|
|
Boland
|
CBSC0002
|
GDA94 /
MGA zone 53
|
6365510
|
534580
|
104.1
|
|
Boland
|
CBSC0003
|
GDA94 /
MGA zone 53
|
6365521
|
534554
|
102.7
|
|
Boland
|
CBSC0004
|
GDA94 /
MGA zone 53
|
6365537
|
534590
|
105
|
|
Boland
|
CBSC0005
|
GDA94 /
MGA zone 53
|
6365528
|
534573
|
103.2
|