Cobra Resources PLC (LSE:COBR) said rare earth elements (REEs) were intersected across a broad region connecting the Baggy Green and Clarke prospects at the Wudinna project in South Australia.
The company has re-analysed drillholes from historic drilling at the two prospects after confirming last month the presence of REE mineralisation at Baggy Green. In February, Cobra announced that it intercepted REEs as well as gold mineralisation at Clarke.
READ: Cobra hits gold and rare earths in latest round of drilling at Clarke
Results from the Stage 2 and 3 re-analysis extend the defined REE mineralisation footprint at Wudinna to about 4 km2, with mineralisation open in multiple directions.
Cobra said 85 holes, or 89% of those re-analysed, produced significant intersections where the average grade is 530 parts per million (ppm) total rare earth oxide (TREO) over a 15.4 metre (m) intersection, using a cut-off grade of 350 ppm.
It said a strong correlation exists between high-grade rare earth oxide (REO) intersections and their proximity to structures hosting gold mineralisation.
"Results from Stages 2 and 3 of our re-analysis approach have confirmed a further significant occurrence of REEs within saprolite clays that overlie, and are proximal to, defined gold occurrences,” said chief executive Rupert Verco.
The highest-grade intersections occur close to gold mineralisation at Clarke.
“The coverage of REE results across Clarke and Baggy Green will favourably contribute to a maiden REE resource estimation, whilst the trending higher grades towards the north of Clarke provide a compelling exploration target that will be drilled for both gold and REE extensions in the company's upcoming drilling programme,” said Verco.
Metallurgical test work is underway and the company has engaged Independent Metallurgical Operations Pty Ltd (IMO) to devise a metallurgical framework to optimise recoveries.
“The engagement of IMO to assist in metallurgical testing is a positive step towards devising a sustainable and cost-effective process of REE extraction,” Verco added.