Koba drilling extends uranium mineralisation at first Mt John target

Koba Resources’ drilling at the Mt John prospect intersects significant uranium mineralisation
Results extend mineralisation at the MJ3B target to over 600m of strike with potential for more extensions
Company to drill another 20 holes to test seven other targets and extend MJ3B

Special Report: The underexplored Mt John prospect within Koba Resources’ Yarramba uranium project in South Australia is living up to expectations with first phase drilling intersecting significant mineralisation.

Initial drilling had targeted extensions of the MJ3B target, one of eight within the 15km strike of the highly endowed Yarramba Palaeochannel that makes up the Mt John prospect.

That some 50Mlb U3O8 has already been defined within the Yarramba Palaeochannel to the south highlights just how rich it is.

Koba Resources (ASX:KOB) now appears to be hitting the mark with its first holes returning results of up to 1m grading 397 parts per million eU3O8 from a down-hole depth of 104.4m and 0.7m at 282ppm eU3O8 from 98.3m.

This has rather neatly extended mineralisation at MJ3B to over 600m of strike with potential for further extensions as it remains open in all directions.

It also follows on earlier drilling extending high-grade mineralisation at the Berber prospect to a strike of over 700m and discovering high-grade mineralisation at the Chivas prospect.

It’s a timely move for Koba, with new uranium discoveries to benefit from strong market fundamentals. Sprott, for one, forecasts continued growth for the uranium market in 2025 amid a major supply shortage globally.

“Numerous junior uranium miners are restarting mines in response to historically high uranium prices, but this is unlikely to close the supply-demand gap,” Sprott’s Paul Wong and Jacob White said in a note that listed the commodity as one of their 10 key investing themes for this year.

“No major new production is expected in the next three to five years, so the imbalance may deepen and place further strain on the market.”

Initial drill hits at the Mt John prospect. Pic: Koba Resources

More mineralisation to be discovered

“We are very encouraged that our first phase of drilling at the Mt John prospect has intersected significant mineralisation which further confirms the potential to make discoveries at the Yarramba uranium project in South Australia,” Koba managing director Ben Vallerine said of the recent results.

“This recent phase of drilling comprised an initial test to explore for extensions of mineralisation at just one of eight previously defined targets at the Mt John prospect, all of which are located within a 15km-long mineralised stretch of the Yarramba Palaeochannel.”

He added the intersection of significant uranium mineralisation in multiple holes in very limited initial extensional drilling was encouraging as it confirms that there is more mineralisation to be discovered.

KOB is certainly keen to find out exactly how much additional mineralisation is present at Mt John with the company planning to drill a further 20 holes in the next phase to test the other seven targets as well as continue testing for extensions of MJ3B.

It also expects to receive in February 2025, processed data from passive seismic that was acquired in December 2024. This data will help define new drill targets and also help plan follow up drilling at the eight current targets.

This article was developed in collaboration with Koba Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.