Cobra Resources provides Wudinna project update

Highlights

• Maiden JORC MRE for the Wudinna project clay-hosted REE of 20.9 million t at 658 ppm total rare earth oxides (TREO).
• The REE mineral resource occurs above and proximal to a defined 94 000 oz gold resource at the Baggy Green prospect and overlies 500 m of intersected gold mineralisation at the Clarke prospect, making this REE resource and future mining economics unique compared to other clay-hosted REE projects.
• The unique mineral occurrence will enable Cobra to investigate commercial outcomes for dual commodities.
• Defined a sizeable REE exploration target at the Thompson prospect highlights the potential for substantial near-term resource growth.
• Initial metallurgical testwork demonstrated magnet rare earth recoveries of up to 34.7%, whilst follow-up mineralogy and lithological testwork demonstrates potential for increased recoveries targeting ionic style mineralisation identified through pH conditions. Mapping and further analysis work will proof-test this concept, paving the way for resource re-classification and metallurgical upside.
• Upside potential to tonnage and grade owing to downhole composite lengths of analysed samples across the Baggy Green prospect.
• Estimation constrained by extent of current drilling, with extensions to be tested by planned drilling in coming months.

Rupert Verco, CEO of Cobra, commented:

“Cobra has taken a fundamental step forward in its ambition to develop a globally unique mineral occurrence by defining a maiden rare earth MRE that overlies two growing gold prospects and is unconstrained.

"Not only have we entered the peer group of Australian rare earth resource holders today, but uniquely we are approaching ours with the economic advantage of spatial proximity between rare earths and gold. Much of the spatial occurrence of the rare earth resource overlies gold mineralisation within the saprolite zone where, should the economics permit open cut mining methods for gold extraction, we would mine through the defined rare earth resource, effectively creating value from overburden. The company considers the dual mineral occurrences as a globally unique opportunity to devise an environmentally considerate, low waste ratio, high value resource.

"With only limited drilling undertaken to establish this baseline MRE, the expansion potential given the unconstrained mineralisation is compelling. The exploration target at the Thompson prospect to be drilled in the coming weeks is of particular interest and could rapidly expand the MRE.

"This exceptional result now enables Cobra to advance metallurgical testwork, grow dual mineral resources and commence strategic discussions aimed at project advancement. Cobra is now poised to expand both gold and rare earth resources through its 2023 exploration activities to advance the project towards feasibility studies.”

Read the article online at: https://www.globalminingreview.com/mining/09012023/cobra-resources-provides-wudinna-project-update/