(Alliance News) - Cobra Resources PLC on Tuesday said it has been granted two rare earth tenements totalling 1,512 square kilometres in South Australia.

The South Australia-focused gold and rare earth exploration company said the tenements, Smokey Bay and Pureba, are located on the Narlaby Paleochannel. Narlaby Paleochannel is an area deemed "prospective for ionic rare earth element mineralisation", similar to Cobra's Boland discovery.

It added that the tenements contain Hiltaba Suite intrusives, which are sources of primary rare earth enrichment.

Cobra noted that it has submitted 220 historical drillhole samples for analysis, which is aimed at increasing its tested area from five square kilometres to 500 square kilometres. Results are expected later this month, it said.

At Boland, the company has booked a drilling contractor for February, and will drill between three and five holes aimed at further defining the significance of its discovery.

Chief Executive Rupert Velco said: "Demonstrating scalability is one of the central pillars of Cobra's 2024 strategy and these additional tenements facilitate that goal.

"Cobra has moved quickly to commence re-analysis of historical samples that are stored in South Australia's world class core library. Preliminary assessment of historical drilling is positive for a significant increase in the scale of the Boland ionic REE discovery and we look forward to confirming this with re-analysis results in the coming weeks."

Cobra shares rose 6.1% to 1.19 pence each on Tuesday morning in London.

By Harvey Dorset, Alliance News reporter

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