Cobra Resources Plc (LSE:COBR) said it intersected a broad zone of mineralisation from the first five drill holes on the Clarke prospect, part of the Wudinna gold project in South Australia.
The initial gold results confirmed the orientation of mineralisation and demonstrated the potential for a significant gold mineral system at Clarke, the company said, adding that re-analysis of previous samples has also defined a broad zone of elevated Rare Earth Elements overlaying the intersected gold.
"These encouraging preliminary results from Clarke confirm the potential for mineralisation, said Cobra chief executive Rupert Verco. “The broad halo of mineralisation demonstrates a potentially significant gold bearing system containing high-grade zones at relatively shallow depths."
He said the prospect continues to deliver and has the potential to add to the company's existing resource estimate of 211,000 ounces.
“The presence of elevated Rare Earth Elements overlaying gold is quite literally icing on the cake and demonstrates a significant opportunity to complement the project's gold assets,” he said.
Highlights from the drilling results included a 96 metre (m) intersection at 0.55 grammes a tonne (g/t) gold, including 20m at 1.5 g/t gold, and a 19m intersection at 0.79 g/t gold, including 5m at 2.62 g/t gold.
Cobra recently carried out a 14-hole drilling programme on the Clarke prospect and is awaiting the results of the remaining nine holes.