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LONDON - Cobra Resources PLC (LSE:COBR), a mineral exploration and development company, has expanded its landholdings for the Boland Rare Earth Project in South Australia by 36%, following the acquisition of three new exploration licences from the Tri-Star Group. The addition of these licences, covering an additional 1,200 km², is expected to significantly enhance the project’s resource growth potential.
The acquisition includes licenses for the Yaninee and Narlaby palaeochannel systems, known for their unique geology conducive to in situ recovery (ISR), a mining process with a lower environmental footprint. Historical drilling on the new tenements has intersected the target Pidinga formation, which is in direct contact with Hiltaba Suite Saprolites known to be enriched in rare earth elements (REEs).
Cobra’s Managing Director, Rupert Verco, expressed optimism about the acquisition, stating that it marks a significant step in consolidating Cobra’s regional land position and advancing the company’s goal to become a leader in ISR of rare earths. He highlighted the potential for the Boland Project to supply critical metals such as dysprosium and terbium at low costs while maintaining high environmental standards.
The terms of the transaction include an initial cash payment of A$50,000 upon transfer of tenure, with additional cash and milestone payments contingent on future resource estimates and approvals. A royalty arrangement has also been established, with a 1.5% Net Smelter Royalty on rare earths capped at A$5.0 million.
The Boland Project represents a significant ionic rare earth discovery, with bench scale ISR testing confirming the amenability of the mineralisation to ISR mining. This technique has been used in South Australia for uranium extraction and is anticipated to allow for the non-invasive and cost-effective production of critical REEs at Boland.
Cobra is preparing to re-assay available drill core and execute a drilling program to expand the REE resource at the Boland Project. The company’s expanded palaeochannel holding now stands at approximately 3,365 km².
This expansion is based on a press release statement from Cobra Resources PLC and is subject to the approval of the South Australian Department of Energy and Mining.
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