Koba’s Focused Strategy Risks Hinged on Success of Upcoming Phase 2 Drilling

• New high-grade uranium discovery at Everest Prospect with multiple intercepts >1,000ppm eU3O8
• High-grade mineralisation also confirmed at Berber and Chivas Prospects
• Phase 2 drilling planned for Q3 2025 with all permits secured
• Divestment of Harrier Uranium Project (Canada) and Goodsprings Project (USA) completed
• Cash position of approximately $1.27 million at quarter end with $1.3 million exploration expenditure

A Breakthrough at Everest

Koba Resources Limited (ASX: KOB) has announced a major step forward in its uranium exploration efforts with the discovery of high-grade mineralisation at the Everest Prospect, part of its expansive Yarramba Uranium Project in South Australia. The initial drilling campaign, completed in the March quarter 2025, revealed multiple intercepts exceeding 1,000ppm eU3O8 over a 4-kilometre strike length, a significant milestone for the company’s maiden exploration program in the region.

The standout intercepts include 0.4m at 1,001ppm eU3O8 and 0.3m at 1,037ppm eU3O8, indicating robust uranium concentrations that remain open for extension both along strike and across trend. Positioned just 4km north of Boss Energy’s 10.7 million pound Jason Deposit and 17km north of the Honeymoon Uranium Mine, Everest’s location within a world-class uranium district underscores its strategic importance.

Expanding the High-Grade Footprint

Beyond Everest, Koba’s drilling program also confirmed high-grade mineralisation at the Berber and Chivas Prospects, both situated near the Oban Deposit. Berber returned impressive results such as 1.6m at 1,026ppm eU3O8, including a 1.0m interval at 1,413ppm eU3O8, while Chivas delivered intercepts like 0.5m at 1,028ppm eU3O8. These discoveries collectively highlight the Yarramba Project’s considerable potential, covering 5,000 square kilometres with over 250 kilometres of largely underexplored palaeochannels.

Strategic Focus and Forward Plans

With the successful completion of its inaugural drilling program, 123 holes for 12,807 metres, Koba is gearing up for Phase 2 drilling scheduled for Q3 2025. This next phase will focus on extensional and in-fill drilling at Everest, Berber, Chivas, and the Mt John Prospect, alongside testing new targets within the palaeochannel system. Importantly, all necessary permits and clearances have been secured, positioning the company to maintain momentum.

In parallel, Koba has strategically divested its non-core assets to sharpen its focus on Yarramba. The Harrier Uranium Project in Canada was assigned to Azincourt Energy Corp, with Koba receiving a combination of cash payments, share issuances, and royalties. Similarly, the Goodsprings Project in Nevada was sold to Fairchild Gold Corp, with Koba becoming Fairchild’s second largest shareholder and retaining a royalty interest. These moves streamline Koba’s portfolio and provide ongoing exposure to potential upside from these projects without direct operational involvement.

Financial Position and Outlook

At the end of the March quarter, Koba held approximately $1.27 million in cash, having capitalised $1.3 million in exploration and evaluation expenditure primarily at Yarramba. The company’s capital structure includes over 158 million shares on issue, supplemented by unlisted options and performance rights. Management anticipates funding ongoing activities through future equity financings, supported by the promising exploration results.

The discovery of high-grade uranium mineralisation across multiple prospects within a globally significant uranium district marks a pivotal moment for Koba Resources. As the company prepares for its next drilling phase, investors will be watching closely to see how these early successes translate into resource growth and potential value creation.

Bottom Line?

Koba’s high-grade discoveries at Yarramba set the stage for a critical Phase 2 drilling campaign that could redefine its uranium resource potential.

Questions in the middle?

• How will Phase 2 drilling results impact Koba’s resource estimates and valuation?
• What is the timeline and likelihood of regulatory approval for the Harrier Project divestment?
• How might uranium market dynamics influence Koba’s financing and development strategy?