Cobra Resources PLC (LSE:COBR) said it is ‘well-placed’ to achieve its Wudinna project 75% earn-in milestone in the second half of 2022 after a ‘transformational’ first six months.
“The work executed across our 2022 exploration programme has us poised to increase our gold resources and establish a potentially world-class rare earth asset,” said Greg Hancock, chairman.
During the period, Cobra defined further gold mineralisation at the Clarke prospect on Wudinna, while also expanding the zone of its high-grade rare earths (REE).
Work underway currently includes a 2,000m drill programme at Clarke to beef up the gold resource with bulk sample metallurgical testing planned for the REEs.
Re-analysis for rare earths at historic drill holes at the Thompson and Anderson prospects has also been scheduled.
“Exploration success to date should enable an update to the company's 211,000 Oz Gold Mineral Resource and a maiden Rare Earth Resource Estimate before year-end," said Hancock.
“The growing strategic, environmental, and economic importance of rare earth metals, coupled with gold's unparalleled fiscal stability, places Cobra in the enviable position of defining a unique multi-mineral inventory within a tier 1 mining jurisdiction serviced with exceptional infrastructure,” he added.
Cobra reported an operating loss for the six months ended 30 June 2022 of £227,000 (£843,000) and had cash of £788,000 at the period end.