THE DRILL SERGEANT: Encounter Resources (ASX: ENR) has identified a second zone of gold stock-work mineralisation at the company’s Telfer West gold project in Western Australia.
Encounter Resources said the new zone is located 800 metres south-east of the Egg prospect where two previous RC holes encountered gold mineralisation.
Encounter completed an RC Drilling program in July 2017 at Telfer West, which included holes ETG0067 and ETG0068 along strike of the Egg prospect where hole ETG0002 was drilled in December 2016.
ETG0002 intersected an 80m wide, depth extensive zone of stock-work style gold mineralisation that included:
38.6 metres at 1 gram per tonne gold from 333m, including 4.2m at 3.2g/t gold from 333.5m and 36m at 0.6g/t gold from 396m, including 3.2m at 3.3g/t gold from 415.2m.
The first RC hole in the new area, ETG0067, returned:
122m at 0.2g/t gold with gold mineralisation strengthening towards the bottom of hole of 36m at 0.4g/t gold from 124m to EOH.
Additional drilling carried out by Encounter, included extending both ETG0067 and ETG0068 with diamond tails.
The company said visual inspection of the drill core demonstrated these holes contain stock-work zones of silicified and fractured quartzite containing pyrite.
Diamond core from these two holes is currently being processed and assay results are expected to be received in October.
In addition, assay results have now been received for the RC pre-collar of ETG0068 showing this hole contains a thick zone of oxidised gold mineralisation of 30m at 1.1g/t gold from 96m which is located to the north-east of the new stock-work zone.
Encounter believes this intersection may represent a lateral supergene dispersion or a hangingwall position to the stock-work.
Based on this new area of gold mineralisation, the company completed an additional RC/diamond drill hole (ETG0070) 80m north-east of ETG0068 to test the down dip of the 30m at 1.1g/t gold intersection.
Assay results from ETG0070 are also expected in October.
As things currently stand, Encounter has left ETG0070 open and may extended the hole to test the new stock-work zone below ETG0068.
“These two RC holes are the southernmost extent of our drilling along the mineralised, quartzite corridor at Telfer West,” Encounter Resources managing director Will Robinson said in the company’s announcement to the Australian Securities Exchange.
“The latest drilling has identified a new gold stock-work zone that remains open down dip and along strike.
“This mineralised corridor can be traced over five kilometres of strike and we have only started testing its potential.”