Cobra Resources Plc · LSE:COBR
Cobra Resources — Investor Presentation (December 2024)
33 slides from Cobra Resources's investor presentation, December 2024
Slide 1: Boland Rare Earth Discovery, South Australia – Project Update & Shareholder Q&A
BOLAND RARE EARTH DISCOVERY, SOUTH AUSTRALIA Project Update & Shareholder Q&A Dec 2024 LSE: COBR
Slide 2: Disclaimer
DISCLAIMER THIS PRESENTATION AND ITS CONTENTS ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR contained in this presentation come from the Company's own internal research and estimates based on the change in the Company's expectations with regard thereto or any change in events, condit
Slide 3: Rare earth mineralogy enabling profitable extraction is rare; Boland's distinguishing features
Rare earth elements are not rare, but mineralogy that enables profitable extraction is as rare as hens' teeth. As a result, only a handful of rare earth mines are in operation outside of China Boland is the only rare earth project in South Australia to: • Deliver desorption recoveries above 50% at p
Slide 4: Reducing Investment Risk
Our exploration approach to address investment risk Industry Standard Discovery Boland Discovery Resource Metallurgy, Processing & Definition Hydrology Reducing Investment Risk Metallurgy & Resource Processing Definition Mine Design & Mine Design & Scoping Scoping Permitting & Permitting & Approvals
Slide 5: Heavy rare earth metal demand is forecast to grow 2-5 times over the next 10 years
Heavy rare earth metal demand is forecast to grow 2-5 times over the next 10 years Global Demand NdPr (kt)1 Global Demand DyTb (kt)1 Forecast Forecast US$13,000M 171kt US$4,400M 5.2kt US$6,500M US$4,000M 93kt US$1,700M 63kt 2kt US$750M 1kt 2023 2033 2033 2023 2033 2033 LOW HIGH LOW HIGH Electric Veh
Slide 6: China currently dominates the production and downstream processing of rare earth metals
China currently dominates the production and downstream processing of rare earth metals Global market share of rare earth supply chain (2023 estimate)1 China U.S Europe Other 100% 90% 80% 70% 60% MREC/ Con Imports Magnet 50% Exports 88% 92% 91% 89% 40% 67% Heavy Finished 30% REOs 60% Goods Exports 2
Slide 7: China's supply chain dominance is built on low-cost in situ recovery (ISR) mining
China’s supply chain dominance is built on low-cost in situ recovery (ISR) mining Boland has the potential to be cost-competitive in rare earth extraction with low environmental impact SOUTHERN CHINA ISR PROCESS BOLAND ISR PROCESS Injection well Injection well Extraction Well lixiviant loss No mine
Slide 8: Accessible, low rainfall freehold land in South Australia, supportive of in situ recovery
Accessible, low rainfall freehold land in South Australia, the only Australian jurisdiction familiar with and supportive of in situ recovery Based on a long experience of ISR uranium operations Operating ISR mines 8
Slide 9: Cobra is growing a dominant land position of 5,200 km2 of palaeochannel geology
Cobra is growing a significant and dominant land position of 5,200 km2 covering a highly prospective network of shallow palaeochannel geology – prospectivity is confirmed by extensive historical drilling that supports massive scale potential Boland discovery represents 7% of a total 2,000km2 of high
Slide 10: Initial drilling of a pilot ISR wellfield within the Boland footprint
Initial drilling of a pilot ISR wellfield within the 139km3 Boland footprint indicates a weighted average grade for Zone 3 of 2,100 ppm (0.21%) Total Rare Earth Oxides (TREO) Drilling of initial pilot wellfield using optimised sampling of 0.5m and less indicates grades of 2,100 ppm in zone 3 and 1,0
Slide 11: Re-assessment of historic drilling indicates potential for high grade mineralisation
At Boland alone, re-assessment of historic drilling and applying Cobra’s experience in optimising grade definition indicates potential for high grade mineralisation over a significant footprint Legend Wudinna Project Exploration Licence Narlaby Palaeochannel Boland Zone 3 – Grade potential with opti
Slide 12: Narlaby Palaeochannel Section – Boland wellfield
High grade, permeable zone 3 mineralisation can be mapped across the palaeochannel where thicker zones occur on the margin of incised deeper channels Narlaby Palaeochannel Section - Boland Channel N Wellfield 150mRL Boland 100mRL 50mRL 0m 500m 1,000m Vertical Exaggeration x10 Topsoil & Aeolian sands
Slide 13: REEs are ionically bound within permeable sands, enabling ISR
Ionic REE mineralisation is usually associated with impermeable clays. At Boland, REEs are ionically bound within permeable sands, enabling ISR and eliminating clay handling and treatment QEMSCAN Mineral Particle Size distribution of Classification mineralisation IONIC REEs Kaolin 100 Coarse Sand Sm
Slide 14: ANSTO bench scale ISR tests demonstrate recoveries of 56%
ANSTO bench scale ISR tests successfully demonstrate recoveries of 56% from a high-grade (>4,500 ppm) Boland core sample Bench scale testing (2.5kg sample) demonstrates Boland mineralisation is amenable to ISR, achieving up to 56% recoveries at pH3 with low acid usage and very low impurities Sample
Slide 15: Optimisation tests and second bench scale study show recovery and permeability upside
Optimisation tests and a second bench scale study demonstrate recovery and permeability upside Optimisation testing (80-450g samples) indicates recoveries up to 86% DyTb at pH2 (24 hours) with very low impurities and negligible increases in acid consumption, supporting process optimisation CBSC0004
Slide 16: ISR is the lowest capital intensity form of mining
ISR is the lowest capital intensity form of mining1 Cobra is targeting upfront CAPEX at approximately 10-15%2 of conventional ionic clay projects3 $2,000 Hard Rock $1,600 Ionic Clay (VAT leach) $1,500 Ionic Clay (heap leach) Millions $1,000 $948 $822 $600 $500 $173 $0 Arafura Hastings Aclara Meteori
Slide 17: Boland has the potential to be a strategic source of heavy rare earths
Boland has the potential to be a strategic source of heavy rare earths: 84% of recoverable value is in the magnet rare earths (NdPr & DyTb) and 54% in the heavy rare earth content Boland Shanghai Optimised Rare earth wellfield Recovered % % metals recoveries Magnet REO oxide zone 3 REO mg/L Distribu
Slide 18: Boland's heavy rare earth weighting is greater than other ionic rare earth projects
Boland’s heavy rare earth weighting is greater than other ionic rare earth projects Heavy rare earth % contribution to saleable product 30.0% 15.6% 10.5% Meteroic Resources Viridis Mining and Metals Cobra Resources MEI.AX VMM.AX COBR.L 1. Viridis Mining and Metals: ASX announcement 24 Sept, 2024 – ‘
Slide 19: ISR offers the potential for Boland to become a bottom quartile producer
The use of ISR offers the potential for Boland to become a bottom quartile producer Target all-in cost with ISR US$/Kg MREC Cobra’s ongoing metallurgical $12.0 test work aims to confirm $10.0 bottom quartile mixed rare Royalties earth carbonate (MREC) $8.0 Rehabilitation production costs (optimising
Slide 20: With ISR, Boland has the potential to be a globally cost competitive supply
With ISR, Boland has the potential to be a globally cost competitive supply of heavy rare earths The lowest quartile of global uranium producers are all ISR operations 2023 Global Uranium Industry Production Cost REE Industry MREC production cost curve Curve 40 Non Chinese Boland Target Production U
Slide 21: ISR reduces environmental risk and rehabilitation cost
ISR reduces environmental risk and rehabilitation cost The cost of rehabilitation of an operating ISR mine in South Australia is 28 times less (per pound mined) than Rio Tinto’s Ranger Uranium mine Rehabilitation cost per lb U3O8 $8.0 $7.0 $6.0 $5.0 A$ per lb $4.0 $3.0 $2.0 $1.0 $- Ranger Mine Heath
Slide 22: Advancement Strategy
Advancement Strategy With initial ISR testing now successfully achieved, Cobra plans to move quickly, addressing resource and flowsheet development in parallel to support a scoping study Production flow sheet Boland resource drilling 2024 - H1 2025 development and maiden MREC Regional drilling advan
Slide 23: Use of funds – exploration programme to accelerate Boland to commercial evaluation
Use of funds – exploration programme to accelerate Boland to commercial evaluation, providing regular and valuable news flow designed to de-risk and drive-up project value Allocated Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Use of Funds Capital 24 25 25 25 25 25 25 25 25 25 25 25 25 Boland
Slide 24: Resource drilling aimed at delivering a significant resource
Resource drilling aimed at delivering a significant resource - requires significant drilling Staged drill design that includes approximately: Stage 1: Aircore: 55 holes (~2,000m) Stage 1: Sonic Core: 6 holes (~200m) Stage 2: Aircore: 96 holes (~4,000m) Stage 3: Aircore: 172 holes (~5,000m) Stage 4:
Slide 25: Shareholder Questions
SHAREHOLDER QUESTIONS 25
Slide 26: cobraplc.com – Kent Town SA
cobraplc.com 64 North Terrace Kent Town SA 5067 Australia
Slide 27: Appendices
Appendices
Slide 28: Appendix 1 – Corporate overview
Appendix 1 – Corporate overview COBR 1.1p 799,871,460 £9M £1.7M LSE Ticker Share Price Ordinary Market Raised in Nov- De 2024 Shares Capitalisation 24 Cobra Share Price History 30 2 MAJOR SHAREHOLDERS 1.8 25 1.6 BRUCE PARNCUTT 10.2% 1.4 Volume (millions) 20 1.2 CRAIG AND SUZANNE BALL 9.88% GBp 15 1
Slide 29: Appendix 2 - Peer CAPEX requirements
Appendix 2 - Peer CAPEX requirements Capital Level of Final Company Deposit Type Reference AUD$M Assessment Product Hard Rock oxides Arafura Rare Earths Ltd (ASX:ARU) Nolans Project Update 11.11.22 Arafura 1,590 DFS Aclara (TSX:ARA) Aclara delivers a positive PEA for its Carina project in Goias, Acl
Slide 30: Appendix 3 - ISR simplifies the mining process
Appendix 3 - ISR simplifies the mining process 1&2 ISR 3 Impurity 4 5 Removal Precipitation MREC Lixiviant Recycling ISR – reduces flow sheet process to 5 steps, Tank Leaching (VAT) involves 10 process steps significantly reducing CAPEX and OPEX costs 30
Slide 31: Appendix 4 – Re-assay results support scale
Appendix 4 – Re-assay results support scale Low-cost exploration demonstrating scale and de-risked future resource drilling • Based on >2 – 6m sample composites • Results to not adequately reflect grade potential • Results used as a basis to infer grades shown on slide 10 31
Slide 32: Appendix 6 – Roll-front uranium occurrences on Cobra's land tenure
Appendix 6 – Cobra’s land tenure contains several highly prospective roll-front uranium occurrences. Advancing roll-front uranium prospects could complement a future REE ISR operation IR1435 IR1436 IR1437 Oxidised Reduced channel channel sand sand Underlying saprolite 32
Slide 33: Appendix 7 – Wudinna Project, JORC (2012) Mineral Resource Estimate
Appendix 7 – Wudinna Project, JORC (2012) Mineral Resource Estimate 2023 RESOURCE ESTIMATE – 5.81Mt at 1.5 g/t Au for 279,000 Ounces Gold Mineral Resource Estimate Rare Earth Mineral Resource Estimate Category Deposit Tonnes Au Ounces Tonnes TREO MREO LREO HREO Pr6O11 Nd2O3 Dy2O3 Tb4O7 mt g/t oz mt
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