Cobra Resources (LSE:COBR) has commenced a Stage 1 drilling programme at the high-grade Manna Hill copper-gold project in South Australia, where it holds a 12-month option to acquire the asset. The initial focus is on establishing scale at the Blue Rose prospect, alongside follow-up work at the nearby Neptune Rose and Black Baccara targets. Regulatory approvals allow for up to 50 drill holes, with the opening campaign covering approximately 3,000 metres.
The programme is designed to test the lateral and depth continuity of previously identified shallow skarn mineralisation, while also assessing geophysical anomalies interpreted as potential porphyry-style systems and structurally controlled targets. Assay results are expected in March, with any subsequent drilling to be guided by geological observations and early outcomes. The campaign reflects Cobra’s ambition to define a scalable copper system in a supportive mining jurisdiction and to diversify its asset base beyond its core rare earth exposure.
From a market perspective, the company’s outlook continues to be constrained by its financial profile, with no revenue generation, ongoing losses and continued cash outflows, although this is partially offset by a debt-free balance sheet. Technically, the shares show more encouraging signals, trading above key moving averages with positive momentum. Valuation metrics remain difficult to assess due to negative earnings and the absence of dividend yield visibility.
More about Cobra Resources Plc
Cobra Resources is a South Australia-focused critical minerals developer progressing assets toward pre-production. Its portfolio includes the Boland ionic rare earth discovery at the Wudinna Project, currently the only rare earth project in Australia considered suitable for in situ recovery mining, alongside the Manna Hill Copper Project within the Nackara Arc, which hosts several underexplored copper prospects. The company has streamlined its portfolio by monetising its Wudinna gold assets through a sale to Barton Gold for up to A$15 million, allowing it to concentrate on critical minerals and large-scale copper opportunities in a jurisdiction that hosts the majority of Australia’s copper reserves.
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