- Andromeda Metals’ (ADN) joint venture (JV) partner Cobra Resources has returned positive drilling results from the Wudinna Gold Project
- The reverse circulation drilling turned up a best intercept of 31 metres at 3.06 grams per tonne (g/t) gold from 69 metres at the Clarke prospect
- Around 80 per cent of results are still awaited from Cobra’s recent 41-hole, 6090-metre program
- Cobra has now satisfied the phase one terms of the JV agreement, earning a 50 per cent stake in the project
- The companies are looking to expand on the current 211,000-ounce inferred and indicated resources at Wudinna
- Andromeda Metals is up 6.25 per cent, trading at 25.5 cents
Andromeda Metals’ (ADN) joint venture (JV) partner Cobra Resources has returned positive drilling results from the Wudinna Gold Project.
The results come from follow-up reverse circulation (RC) drilling at the Clarke prospect.
Cobra has now completed the first phase of the JV agreement which has earned it a 50 per cent stake in the South Australian project.
Early promise
The RC drilling turned up a best intercept of 31 metres at 3.06 grams per tonne (g/t) gold from a depth of 69 metres.
The target area at Clarke has expanded by 60 metres to the north of previous intercepts, with three RC holes totalling 409 metres all returning mineralisation.
The drilling was principally aimed at growing the mineralised footprint and checking the continuity of mineralisation from the previous intercepts.
Cobra drilled 41 RC holes for 6090 metres across a number of target areas at Wudinna in the current program. Around 80 per cent of the samples are still awaiting assay.
Armed with the new results from Clarke, Cobra and Andromeda will be in discussions for phase two of the farm-in agreement.
Farm-in
Cobra had to spend $2.1 million within three years to earn a 50 per cent interest in the Wudinna project.
The terms were extended slightly due to the COVID-19 pandemic, but Cobra completed the drilling ahead of the December 31 deadline.
The companies can now choose whether to proceed to phase two of the agreement, which will see Cobra spend a further $1.65 million over two years to earn a 65 per cent stake.
Phase three would cost Cobra another $1.25 million over 12 months to claim a 75 per cent share of the project.
Alternatively, the companies can form a joint venture upon completion of any stage and co-sponsor further exploration on standard JV terms.
Having gained the first 50 per cent, Cobra will act as manager into the future as exploration continues.
So far, three deposits at Wudinna have indicated and inferred resource estimates totalling 211,000 ounces of gold.
Cobra and Andromeda will likely be looking to add to those resources with more drilling at Clarke and other priority targets in coming months.
Cobra has already stated its aim of hitting one million ounces of resources across Wudinna.
The company will have a better idea of the project’s potential once the remaining results from the current program are returned.
Nevertheless, Andromeda’s focus remains developing its Great White Kaolin Project, with work on the mining lease application and definitive feasibility study being the top priorities.
Andromeda Metals is up 6.25 per cent, trading at 25.5 cents at 10:27 am AEDT.