Cobra Resources Options Major Copper-Gold Project in South Australia

Netley Hill – a 3 km chargeability anomaly with copper-molybdenum

Induced polarisation (IP) surveys – a geophysical method that can light up sulphides – define a ~3 km-long chargeability feature. Drilling has already found broad, low-grade mineralisation:

• 350 m at 0.1% Cu and 0.05% Mo from surface (NTDD001)
• 24 m at 0.3% Cu and 0.02% Mo from 55 m to end of hole (NETRP03)
• 45 m at 0.02% Mo from 15 m to end of hole, including 15 m at 0.15% Cu and 0.02% Mo from 45 m (NETRP14)

It is early days, but the scale of the IP anomaly is notable for a porphyry-style system.

Golden Sophia – a walk-up Carlin-style gold target

In sericitised carbonaceous pelite, prior hits include:

• 36 m at 0.6 g/t Au from 2 m (GS2)
• 60 m at 0.58 g/t Au from 10 m to end of hole (GS3)
• 34 m at 0.51 g/t Au from 6 m to end of hole (GS4)
• 20 m at 0.57 g/t Au from 18 m (GS27)
• 30 m at 0.61 g/t Au from 2 m (GS29)
• 41 m at 0.31 g/t Au from 6 m (HGRC003)

It sits along strike from the historic Wadnaminga goldfields. A blind magnetic anomaly nearby could represent the porphyry source.

Work plan and near-term catalysts

During the option period, Cobra will focus on Blue Rose. A heritage clearance is already in place. The programme seeks to add scale, validate historical drilling and test the refined structural model. Planned holes include:

• Infill for a potential Mineral Resource Estimate (MRE)
• The northern syncline limb
• Western extensions
• A higher-grade fold hinge at depth, where fracturing may concentrate metals

Further geophysical inversion is underway to firm up hinge depths, and applications are being prepared to expedite drilling.

Option mechanics, consideration and ownership path

Cobra has signed a binding option deed to acquire 100% of Hamelin Gully Pty Ltd, the licence holder. Key terms are below.

Tenure	ELs 6009, 6046, 6646 (1,855 km2)
Option period	12 months from commencement
Consideration on exercise	A$1,000,000 in Cobra shares (10-day VWAP), plus cash reimbursement of substantiated project spend
Future mining structure	Mining SPV: 74% Cobra / 26% Seller if a JORC resource is declared and mining licences granted
Put/Call on 26% interest	After 8 years, priced at the average of two independent valuations; consideration can be in Cobra or SPV shares
Royalty	1% overriding royalty on production
Walk-away	Cobra can withdraw at any time before exercising the option with no liability
Approvals	Shareholder approval required; completion may also require LSE and FIRB approvals

Related party note: the seller is The Springton Trust; Cobra director David Clarke is a beneficiary. The company will seek shareholder approval and the deed includes standard warranties.

How this fits with Boland and the wider strategy

Cobra is advancing the Boland ionic rare earth discovery, where bench-scale testing indicates amenability to in-situ recovery (ISR) – a low-disturbance method using fluid injection and extraction in a confined aquifer. Management says staggering workstreams across Boland and Manna Hill should minimise downtime and increase newsflow. They also highlight a pivot towards three transition metals: dysprosium, terbium and copper.

The RNS notes Cobra has sold its gold assets for up to A$15 million with retained upside via a shareholding in the buyer. The “About Cobra” section also references a 279,000 Oz JORC gold resource at Wudinna; the announcement does not detail the current ownership status of that resource.

My take: upside, risks and what to watch

What looks positive

• Scale and optionality: a district-scale position in a porphyry province with multiple targets and existing mineralisation over 1.6 km at Blue Rose.
• Low upfront cost: A$1.0 million in shares on exercise, reimbursement of spend, and the ability to walk away during the option period keeps risk contained.
• Permits and access: Native Title Mining Agreement and heritage clearance at Blue Rose should enable a quick start to drilling.
• Technical alignment: Cobra’s geophysical reinterpretation and structural model provide a clear plan to chase higher-grade zones and potential porphyry roots.

What needs scrutiny

• Related party structure: the vendor is linked to a Cobra director. Shareholder approval and transparent valuations for the 26% SPV stake will be important.
• Historic data quality: some collars require verification (e.g., RCBR030). The company plans validation drilling, which is the right move.
• Economics not yet in play: no resource, no metallurgy for copper, and copper-equivalent illustrations exclude recoveries. Investors should treat them as indicative, not economic.
• Future dilution: consideration is in Cobra shares; further drilling will need funding – the RNS does not disclose cash costs or budgets.

Key takeaways for investors

• Cobra has secured a 12-month exclusive shot at a very large copper-gold project in South Australia with multiple untested targets.
• The immediate goal is to scale up and de-risk the shallow Blue Rose skarn while probing for a porphyry source.
• The option structure is shareholder-friendly in that Cobra can withdraw before exercise and the cash outlay on day one is limited.
• Expect near-term newsflow from permitting progress, geophysical modelling, and a targeted drill programme at Blue Rose. A live webinar is planned for 3 September, and a short project video is available via the company’s investor portal.

Glossary quick hits

• Porphyry: a very large, typically low-to-medium grade copper-gold-molybdenum system formed from intrusive magma bodies – these can support long-life mines.
• Skarn: mineralisation formed where intrusions react with carbonate rocks, often producing higher grades near contacts.
• IP chargeability: a geophysical technique that detects how rocks temporarily hold electrical charge; sulphides often appear “chargeable”.
• JORC: the Australasian code that governs how exploration results and resources are reported.
• ISR (in-situ recovery): extracting metals by circulating a solution through the orebody in a confined aquifer, reducing surface disturbance.