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Shares of Cobra Resources PLC (LON: COBR) spiked 25.92% higher after the gold mining company revealed that it had discovered high-grade gold intercepts at the Barns and White Tank deposits at Wudinna.

The mining company, which is focused on the Wudinna Gold Project in South Australia, found 8 g/t gold over 3m, including a peak intercept of 23.10 g/t gold and 20.00 g/t silver and 6.28 g/t gold over 5m including 2m at 14.78 g/t in the leading hole.

Today’s results are in addition to the 5.25 g/t of gold over 15m discovered at Clarke last month and they are the final assays from the 2020 drilling programme.

Cobra Resources estimates that the Barns JORC resource will yield 104,000 oz of gold worth over $191.3 million at current prices, while the White Tank Resource will produce 13,000 oz worth over $23.9 million.

The firm drilled a total of 19 Reverse Circulation (RC) holes in and around the Barns JORC resource zone, with all but three holes returning mineralised intercepts of greater than 0.3 g/t of gold.

Craig Moulton, Director of Cobra, commented: “I'm thrilled with these results. Against any metric, results such as 3.25 g/t over 13m, 6.28 g/t over 5m and 8 g/t over 3m are incredibly exciting. It shows that, as we continue to methodically execute our strategy of applying sound industry-leading science, the Wudinna project continues to deliver.”

Adding:

“Also, it will be very interesting to understand whether these new silver and copper results represent an additional value dimension to the project. The team is now fully focused on extracting every ounce of value from these data, updating our models, and finalising our plans for the 2021 programme. We look forward to keeping the market informed as the project continues to develop.”

Cobra Resources share price

Tradingview chart of Cobra Resources share price 21-01-2021

Cobra Resources shares surged 25.92% to trade at 3.40p having risen from Wednesday’s closing price of 2.70p.

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