THE BOURSE WHISPERER: Encounter Resources (ASX: ENR) has entered into an earn-in agreement with St Barbara (ASX: SBM), the result of which will be the expansion of Encounter’s ground position in the Paterson Province in Western Australia.
The agreement relates to tenement applications ELA45/3232 and ELA45/3308, which cover an area of 60 square kilometres, located 10 kilometres north-east of the company’s Yeneena project and 15kms south-west of Newcrest’s Telfer gold-copper mine.
Yeneena project leasing, key structures and target areas. Source: Company announcement
“This completes our second earn-in agreement in the region and expands our position along the prospective corridor between our Yeneena project and the Telfer gold-copper mine,” Encounter Resources managing director Will Robinson said in the company’s announcement to the Australian Securities Exchange.
“The Paterson Province has demonstrated potential for major gold and base metals deposits and we are strategically positioned in the region.”
Encounter Resources said it regards the north-east trending structures in relation to copper-cobalt mineralisation at the Yeneena project to be of some significance.
The tenements under the new agreement are located within, what the company considers to be, a prospective north-east structural corridor of between the Yeneena project and Telfer.
Encounter indicated they include a subtle but discrete magnetic anomaly located along this north-east prospective trend.
The company said it intends to progress the tenements through to grant, complete a helicopter based EM survey to allow more detailed targeting and then conduct drilling as warranted.