Highlights

• Cobra Resources' Boland project in South Australia reveals significant drill results for heavy rare earth elements.
• Stock jumped 9% after discovering thick intercepts of dysprosium and terbium, critical elements for electric vehicles and defense systems.
• Company plans to expand drilling and prepare for a maiden mineral resource estimate.
• Potential for lower-cost in-situ recovery extraction.

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Shares of Cobra Resources Plc (opens in a new tab) (LSE: COBR (opens in a new tab)) jumped 9% on Thursday following better-than-expected drill results from its Boland rare earth project in South Australia. The latest round of Sonic drilling revealed thick intercepts of in situ recoverable heavy rare earth elements (HREEs)—notably dysprosium and terbium, two critical elements used in high-performance permanent magnets for electric vehicles and defense systems.

According to Cobra, the geological setting is well-suited for in situ recovery (ISR), a lower-cost, environmentally favorable extraction method more commonly used in uranium mining. This technical advantage, paired with the latest results, positions Boland as a rare and potentially scalable HREE project outside China.

Management plans to expand drilling into newly acquired tenements, boosting both resource potential and scale. Additional assay results are expected in the coming weeks, and the company is preparing for a new phase of resource drilling to support a maiden mineral resource estimate—a key milestone for investors.

Cobra’s stock, already up nearly 100% year-to-date, rose 0.18p to 2.18p on the London Stock Exchange following the news.

REEx Analysis & Questions for Investors

The Boland results mark a rare bright spot in global HREE exploration, particularly given China's recent export curbs. However, while ISR has promise, it requires careful chemical control and hydrogeological management—a technical hurdle not addressed in Cobra’s announcement. No metallurgy results were cited, and no timeline was given for pilot-scale testing or permitting.

Investors should also ask:

• What is the company’s cash runway to fund expanded drilling?
• Are offtake or refining partnerships in place or being pursued?
• How scalable is ISR in this deposit beyond laboratory conditions?

Cobra's momentum is real, but its path to production remains uncertain without downstream clarity or full feasibility data.

REEx Reflection

Encouraging drill results and ISR potential make Cobra one to watch in the HREE space. But turning resource into revenue will depend on follow-through, financing, and technical execution.

Source: Proactive Investors UK | Author: Ian Lyall