TIDMCOBR
Cobra Resources PLC
07 April 2020
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATES,
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RELEVANT LAWS OF SUCH JURISDICTION.
For immediate release
7 April 2020
Cobra Resources plc
("Cobra" or the "Company")
Exploration Update - Successful Completion of Stage 2 and ADI
Funding
Cobra is an exploration and mining company which today announces
an update on exploration and evaluation of the Wudinna Gold
Project.
The Wudinna Project (the Project) is located on the Eyre
Peninsula in the Central Gawler Gold Province, a 450-kilometre-long
arcuate belt in South Australia which contains numerous mineral
occurrences.
The Wudinna Mineral Resource estimate, as at March 2019, for the
Barns, White Tank and Baggy Green deposits is shown below. This has
been classified and reported in accordance with the guidelines of
the JORC(2012) Code. The Mineral Resources have been reported above
a 0.5 g/t gold cut-off grade to reflect current commodity prices
and extraction by open pit mining.
Deposit Classification Tonnes Grade (g/t Gold ounces
(x1,000) gold)
Barns Indicated 410 1.4 18,000
Inferred 1,710 1.5 86,000
------------------------------ ---------- ----------- ------------
Total 2,210 1.5 104,000
------------------------------ ---------- ----------- ------------
White Tank Inferred 280 1.4 13,000
---------------- ---------- ----------- ------------
Baggy Green Inferred 2,030 1.4 94,000
---------------- ---------- ----------- ------------
Total 4,430 1.5 211,000
---------- ----------- ------------
The Company is earning a 75% interest in the Project by spending
A$5 million over a 6-year period.
In November 2019 the Company announced a three-stage geochemical
(soil) sampling programme with the aim of improving the definition
of gold targets at Wudinna prior to drilling.
These stages include:
Stage 1. Calibration program - Establish new geochemical
relationships that provide improved pathfinders to high grade Gold
mineralisation.
Stage 2. Brownfields / Extensions - Use Stage 1 learnings to
identify priority drill targets to extend mineralisation at Barns,
Baggy Green or White Tank.
Stage 3. Greenfields Targets - Apply results from Stages 1 &
2 to define high priority drilling targets for new Gold and Copper
discoveries at Wudinna.
Highlights:
-- The Stage 2 sampling programme has been completed successfully.
-- A total of 654 soil samples have been delivered to ALS
Laboratories for multi-element analysis.
-- Field activities were completed on Friday 27(th) March with
all areas being tested, except for the Clarke prospect where sand
cover proved too deep for manual auguring.
-- Results are currently expected within 2 to 4 weeks as to date
the processing of samples at the ALS laboratories have been largely
unaffected by the COVID-19 outbreak.
-- The Company has also submitted it second round proposal for
co-funding of an exploration programme targeting large scale IOCG
(Olympic Dam-style) mineralisation under the Department of Mining
and Energy's Advanced Discovery Initiative.
In Detail:
The Stage 2 soil sampling programme was completed on schedule on
the 28(th) March with 654 samples being sent to ALS laboratories in
Adelaide. The programme saw the collection of 104 new samples at
the Barns prospect - Southern Extension; Baggy Green - South; Baggy
Green South East; and the Clarke prospect, as well as 550 re-assays
of previous samples.
Samples were unable to be collected in the western and norther
parts of the Clarke prospect due to thicker sand cover. Once all
results have been received, consideration will be given to vehicle
mounted sampling methods for this prospect, if required.
All 654 samples are being subjected to 48-element geochemical
analysis to facilitate the new chemical fingerprint technique
announce on the 27(th) of March, which established that elevated
Bismuth, Tellurium, Tungsten, Copper and Silver in soils were
strong pathfinders to basement gold mineralisation.
Once these results have been received and analysed, a further
update will be provided to the market. In the meantime, the Stage 3
programme will be put on hold until COVID-19 travel restrictions
have been lifted. The Company intends to focus on the design and
permitting of a RC drilling programme for the second half of 2020.
As such, it is not anticipated that COVID -19 will delay
operational progress, however the directors continue to monitor the
situation.
The Company is also pleased to announce that it was requested to
submit a second-round proposal for the South Australian Department
of Mining and Energy's Advanced Discovery Initiative (ADI). The ADI
programme provides funding of up to 50% of direct exploration costs
for new exploration initiatives, including identifying new
mineralised terrains.
The Company is targeting large Iron Oxide Copper Gold (IOCG)
deposits similar to BHP's the massive Olympic Dam Copper-Gold mine,
approximately 300km to the north east. If successful, this
initiative will fund up to half of the geochemical testing and
drilling of several new and exciting targets within the Wudinna
project.
Craig Moulton, Managing Director of Cobra commented:
"I hope all of our investors and followers are managing to stay
safe during this difficult time. The Company is on plan and is very
excited to see the results of this recent round of soil sampling.
In addition, being requested to submit a second-round proposal for
ADI funding is a great vote of confidence in the Company's
technical team by the South Australian government."
Competent Person Statement - Technical
Technical information in this announcement has been reviewed by
Craig Moulton, the Company's Managing Director. Craig has 27 years'
experience in the industry, having worked for Rio Tinto, Cleveland
Cliffs and Wood Mackenzie, and is a trained Geologist and Mineral
Economist. Craig holds a BSc Hons (Geology), MSc (Min Econs),
MAusIMM, FGS.
Competent Person Statement - Resource Estimation :
The information in this release that relates to the Estimation
and Reporting of Mineral Resources has been compiled by Mrs
Christine Standing BSc Hons (Geology), MSc (Min Econs), MAusIMM,
MAIG. Mrs Standing is a full-time employee of Optiro Pty Ltd and
has acted as an independent consultant on the Mineral Resource
Estimates for the Barns, Baggy Green and White Tank Deposits. Mrs
Standing is a Member of the Australian Institute of Geoscientists
and the Australian Institute of Mining and Metallurgy and has
sufficient experience with the style of mineralisation, deposit
type under consideration and to the activities undertaken to
qualify as a Competent Person as defined in the 2012 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (The JORC Code). Mrs Standing consents
to the inclusion in this report of the contained technical
information relating the Mineral Resource estimations in the form
and context in which it appears.
End
Enquiries:
+61 (0) 40 6932187
Cobra Resources plc Craig Moulton +61 (0) 8 9316 4938
Nick Emerson
SI Capital Limited (Broker) Sam Lomanto +44 (0) 14 8341 3500
--------------- -----------------------
Duncan Vasey
Peterhouse Capital Limited Lucy Williams +44 (0) 20 7469 0932
--------------- -----------------------
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END
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