Encounter Resources inks new earn-in agreement

THE BOURSE WHISPERER: Encounter Resources (ASX: ENR) has entered into an agreement that will expand the company’s ground position in the Paterson Province in Western Australia.

The agreement is with Midas Resources (ASX: MDS) and relates to two granted exploration licenses and an area of 316 square kilometres, located to the north and west of Encounter’s Yeneena project.
 
According to Encounter the tenements hold prospective ground along the McKay and Vines Fault copper corridors.

This ground addition will result in Encounter controlling over 75 strike kilometres of the Vines Fault and 60kms of the McKay Fault corridors.

 

Yeneena project leasing, key structures and target areas. Source: Company announcement

 

Encounter stated its exploration activities at Yeneena to date have outlined copper mineralisation between these two corridors, in particular, its BM1 and BM7 copper discoveries.

“Encounter has considerable operating experience in the Paterson Province and has developed significant in-house knowledge about the copper systems in the region,” Encounter Resources managing director Will Robinson said in the company’s announcement to the Australian Securities Exchange.

“Expanding our strategic footprint and applying our deposit understanding and targeting skills into these prospective regions is a logical extension to our existing copper exploration activities.”

The Yeneena project now covers 1,900sqkm of the Paterson Province.

It is located 40km from the Nifty copper mine and 30km from the Telfer gold-copper deposit.

Encounter claims the targets it has identified are located adjacent to major regional faults and have been identified through electromagnetics, geochemistry and structural targeting.

The targets are hosted within sediments of the Broadhurst Formation in a similar geological setting to Straits Resources’ Nifty copper deposit (total resource of 148.3 million tonnes at 1.3 per cent copper).

During 2012 and 2013 Encounter added to its ground position along the prospective corridor adjacent to the Yeneena project by completing earn-in agreements with St Barbara, Independence Group and Midas Resources.
 
In April 2013, the company completed an earn-in agreement with Antofagasta Minerals Perth, a wholly owned subsidiary of Antofagasta PLC, one of the world’s largest copper producers, where the South American major may earn a 51 per cent interest in two tenements within the Yeneena project by incurring expenditures of US$20 million over a five year period.