Cobra Advances ISR Rare Earths Case With Encouraging Metallurgical Results

Cobra Resources plc (LSE:COBR) reported encouraging metallurgical test work from the Head Prospect, located on newly acquired tenements close to its flagship Boland Project in South Australia. The results indicate that rare earth mineralisation hosted within the Pidinga Formation could be suitable for scalable, low-cost in-situ recovery, particularly for heavy rare earth elements.

The company said diagnostic leach testing on historical composite samples from the Head Prospect delivered recoveries of around 50% for key rare earth elements and materially outperformed samples taken from underlying saprolite and weathered granite. These outcomes have reinforced Cobra’s view that the large 85 square kilometre palaeochannel system has the potential to significantly expand the project’s resource base and strengthen the overall economic rationale for ISR-based development. Step-out and resource-focused drilling is scheduled to begin in March 2026, with the aim of identifying thick, ISR-recoverable mineralised zones and building sufficient scale to support a maiden mineral resource estimate.

From an investment perspective, Cobra’s outlook continues to be weighed down by its financial profile, with no revenue generation, ongoing losses and sustained cash burn, although this is partly offset by the absence of debt on the balance sheet. Technical indicators remain a clear positive, with the share price trading above major moving averages and supported by healthy momentum. Valuation remains difficult to assess, however, due to negative earnings and the lack of dividend yield information.

More about Cobra Resources plc

Cobra Resources plc is a London-listed exploration and development company focused on advancing a potentially large-scale ionic rare earth element discovery at its Boland Project in South Australia. The company is targeting high-value heavy and magnet rare earths, including terbium and dysprosium, within permeable palaeochannel systems that are considered suitable for low-cost, low-impact in-situ recovery, positioning Cobra as a potential supplier of critical rare earths outside China.