Cobra Resources have a Gold Project in JV with Andromeda and discovered REE, through re-analysis of previous samples. Andromeda is a natural benefactor of all this. ADN still has a big stake in this project but should Cobra prove successfull ADN's holding will dilute to 25%.
Cobra is now classified as a GOld, Rare Earth and IOCG company targetting vertical integration.
Their aim is to prove up to 1M Gold Ounces and pick up Copper as a secondary and also target REE.
Rupert Verco CEO says "Some of the highlights are truly stunning in terms of the grade and intersection width in terms of a Rare Earth prospective"
I have watched the video twice, it is more detailed then his usual, and he shares some interesting knowledge about mineral extraction in terms of Ion Exchangeable, the Colloid and Mineral Phase.
Drills are churning away, and they expect updates in July.
From a sentimental focus I like how he is going about it - he mentions drill results were announced later then expected due to back log at the analysis site, but this has not impacted progress - as work is ongoing. He also mentions they have been testing extraction of these REE, and from my understanding, he believes they can around 60% extraction using environmentally friendly low cost mining through optimisation with Ion Exchange and/or acid leaching.
He also says that intersections are high in High Value REE and this could prove up to be possibly a world class rare earth resource.
What does this mean for us? If this does end up a mine across 1m Oz Au, + Copper and a world Rare Earth tenemement, then ADN will benefit greatly. Even with progressing to just Au, or just the Rare Earths this will be significant.
Reality Check....... They have a MC of just around 10M pounds, and getting to be a Au, REE producer in not cheap (even with a lost cost mine). I honoustly don't know how this will turn out in the end. They are frugal with their funds which is good. I suppose if you have the resources and proven extraction methods and the ML then there will be interest from parties. I can't see ADN getting involved with their Harvest business plan.
Anyway - great news for us - Rupert & his crew are ticking all the boxes - updating the market frequently and as promised, and it appears they may be sitting on something special. Well done to them for progressing.....
ADN Price at posting:
6.7¢ Sentiment: Buy Disclosure: Held
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(20min delay)