Mining News
Cobra Resources drill results seem to have disappointed some investors
(Kitco News) - Cobra Resources (COBR:LSE) have announced significant gold intercepts at the Baggy Green deposit. The Baggy Green JORC resource is currently estimated at 94,000 oz and occurs as two deposits. There are said to be a further six exploration holes targeting new mineralisation.
Craig Moulton, Director of Cobra stated "We are currently focused on the geochemical and structural interpretation of these results, and expect that, when combined with the borehole wireline logging data, they will provide a strong indication on the orientation of the mineralisation at Baggy Green. This has positive implications for defining further extensions to the resource. It is encouraging to see relatively thick low-grade intercepts to the south of the existing JORC resource as well as a high-grade intercept well to the north. We now eagerly await the remaining assays at Barns."
The share price is almost trading 13% lower in early trade. It seems investors are waiting for the results from drilling at the Barns and White Tank deposits which are now expected to be announced in January 2021. There has also been some question marks over the gold grades. Here are the highlights of the intercepts:
9m at 1.07 g/t to the north of the southern JORC resource zone
1m at 3.73 g/t in an exploration hole approximately 300m to the north of the northern JORC resource zone
Two thick low-grade intercepts of 13m at 0.33 g/t and 10m at 0.29 g/t both to the south of the southern JORC resource zone
As you can see from the daily share price chart below the bearishness is kicking in this morning. The price is currently near one support area but it has just printed below slightly. Beyond that, there is another level at 1.40 that could be more significant leading into 20th January when the rest of the results are due.
