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(Alliance News) - Cobra Resources PLC on Tuesday said high-grade rare earth intersections at its Wudinna project demonstrate further rare earth element resource growth.
Cobra Resources shares surged 21% to 1.39 pence each in London on Tuesday morning.
The Gold, rare earth and iron oxide copper gold ore deposits exploration company focused on the Wudinna project in South Australia said it has identified a combined 48 metres intersection at its Boland prospect, which contains 2,000 parts per million of total rare earth oxides.
The intersections include 3m at 942 ppm total rare earth oxides, 3m at 559 ppm and 12m at 1,191 ppm.
The firm said it has sent selected samples for desorption and simple leach testing by Australia's Nuclear Science and Technology Organisation.
So far, Cobra has only tested 1.5km of a prospective 30km zone, which it said makes the project "highly scalable".
Chief Executive Rupert Verco said: "While not yet definitive, the Boland results are significant due to the style of mineralisation being amenable to low impact, low-cost extraction with significant growth potential due to the scalability of palaeo-channel systems on our tenements. This places Cobra in the minority of Australian REE companies able to show unique REE occurrences with significant economic enablers.
"The board believes that, between the unique dual gold and REE resource and the confirmation of palaeo-channel hosted REEs, the Wudinna Project is positioned with highly competitive economic advantages that make it a market standout."
By Harvey Dorset, Alliance News reporter
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