Grok12 Mar 2025 11:59
So I asked Grok what would be a good MRE for Cobra based off up to date data, to get an idea of what all these numbers will mean. Here is the reply.
To determine what would constitute a "good" Mineral Resource Estimate (MRE) for rare earth elements (REEs) for Cobra Resources as of March 12, 2025, we need to build on available data, the company’s project specifics, and industry benchmarks. Cobra Resources, focused on the Wudinna Project in South Australia, has been developing a clay-hosted REE resource amenable to in-situ recovery (ISR), a low-cost extraction method. Since no precise MRE update is explicitly available for March 12, 2025, I’ll extrapolate from their latest reported data, drilling progress, and stated goals, while aligning with what "good" means in the REE sector (e.g., tonnage, grade, economic viability, and strategic value).
Background on Cobra Resources’ Wudinna Project
Latest MRE (January 2023): Cobra reported a maiden JORC-compliant MRE of 20.9 million tonnes at 658 ppm Total Rare Earth Oxides (TREO), with Magnet Rare Earth Oxides (MREO, e.g., Nd, Pr, Dy, Tb) comprising about 23-28% of TREO in some intercepts. This resource overlays gold mineralization at the Baggy Green and Clarke prospects, creating a unique dual-commodity opportunity.
Drilling Updates (2023-2024):
June 2023 drilling results showed intercepts like 25 m at 739 ppm TREO (26% MREO) and 3 m at 1,823 ppm TREO (22% MREO), indicating potential for resource expansion.
August 2024 reports from Cobra’s website and posts on X suggest ongoing drilling (e.g., 95 aircore holes in 2023, with results like 23 m at 911 ppm TREO, including 9 m at 1,391 ppm TREO) aimed at growing the resource and testing ISR viability at the Boland prospect.
The company has emphasized resource growth potential at prospects like Thompson, with exploration targets suggesting significant upside.
ISR Focus: Cobra’s Boland prospect targets ionic clay-hosted REEs, which are leachable with low-cost methods (initial tests showed 34.7% magnet REE recovery, with potential for improvement).
Land Package: The Wudinna Project spans 3,261 km², with a current REE resource footprint of 41.6 million tonnes at 699 ppm TREO (updated from earlier reports), alongside a 279,000 oz gold resource.
What Constitutes a "Good" MRE for Cobra?
A "good" MRE for Cobra would reflect growth from the 2023 baseline, leverage ISR economics, and position the company as a competitive player in the non-China REE market. Key criteria include:
Tonnage: Scaling from 41.6 million tonnes to 50-100 million tonnes would align with mid-tier REE projects (e.g., Defense Metals’ Wicheeda at 34.4 million tonnes).
Grade: Maintaining or improving on 699 ppm TREO, ideally with a cutoff of 500-600 ppm for ISR viability, and a high proportion of MREO (20-30%).
Classification: Increasing Measured and Indicated (M&I) resources to >50% of the total, supporting feasibility studies.
Economic Advantage: ISR pot
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