Cobra Resources PLC (LSE:COBR) said reverse circulation (RC) drilling will start soon at the Clarke prospect, part of the Wudinna project in South Australia, which is expected to enable an updated gold resource estimate and a maiden rare earth resource estimate.
The drilling programme will also see Cobra achieve the Stage 3 earn-in milestone at Wudinna, entitling the company to 75% project ownership.
Wasdrill Pty Ltd is preparing to mobilise to site to start the 16-hole, 2,000-metre (m), infill drilling programme, Cobra said.
Previous drill programmes at the Clarke prospect have defined clay hosted rare earths overlaying gold mineralisation intersected across 500m of strike.
The new drilling will test for further Rare Earth Elements (REE) above gold strike extensions and test an additional 250m of strike north beyond defined mineralisation, where gold and rare earth mineralisation remains open.
"The Clarke prospect has demonstrated its potential to add to Cobra's mineral inventory,” said chief executive Rupert Verco.
“Results of the recent aircore programme have defined highly encouraging indicators for further along-strike gold mineralisation. This, coupled with broad intersections of high-value magnet rare earths, indicates that the target area is compelling for further exploration success.”
READ: Cobra Resources says results from Clarke prospect 'exceptional'
Cobra expects to reveal the RC drilling results in November and the gold and rare earth resource estimates in December.