(Alliance News) - Cobra Resources PLC said Friday it has been approved for an exploration permit for its Wudinna gold project in Australia.
Wudinna is located in the "prime" Central Gawler Craton province of South Australia.
The exploration permit has been approved by the South Australian Minister for the Environment & Water, and the Minister for Energy & Mining.
The permit removes the need for annual approvals within the permit area, Cobra said, and covers all 22 gold prospects and 4 iron oxide copper gold ore deposits targets.
Following the permit approval, Cobra will start an expanded drilling program of 25 holes beginning September 23.
The company currently has three exploration programs totalling up to 6,750 metres of reverse circulation drilling and 150 auger soil samples, planned for the remainder of 2020.
"The strategic aim of these programs is to progress resource development of the Wudinna project towards the boards initial target of a 1 million ounces resource," Cobra said.
Cobra also noted it expects to achieve its Stage 1 earn-in commitment with its joint-venture partner Andromeda Metals Ltd of AUD2.1 million, about USD1.5 million, shortly after the completion of the first program.
This will result in Cobra securing its initial 50% stake in Wudinna.
Director Craig Moulton said: "Receiving this permit weeks earlier than expected is fantastic news and will enable the company to drill targets at Baggy Green North and Laker in the first program. We look forward to updating the market further as our drilling campaign commences later this month."
Shares in Cobra Resources were down 1.4% in London on Friday at 2.12 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Cobra Resource. (COBR)