THE BOURSE WHISPERER: Encounter Resources (ASX: ENR) informed the market that Independence Group (ASX: IGO) has elected to enter an earn-in and Joint Venture agreement.
Encounter Resources explained the deal will result in IGO agreeing to sole fund up to $15 million in exploration expenditure at the Yeneena copper-cobalt project in Western Australia to earn a 70 per cent interest.
The Yeneena project comprises a major land position covering more than 1,400 square kilometres in the highly-prospective Paterson Province of WA where Encounter has been targeting copper-cobalt mineralisation.
Exploration activity in the Paterson Province has been on the rise since Rio Tinto (ASX: RIO) declared its Winu copper-gold discovery and Newcrest Mining (ASX: NCM) and Greatland Gold plc have been operating their Havieron gold-copper project.
Encounter and IOG were busy on the ground during 2019, applying advanced geophysical and geochemical exploration methods at Yeneena that defined a suite of new, large scale targets.
The JV anticipates these exploration activities to resume at Yeneena in April/May that is expected to include additional ground geophysics and further application of geochemistry, followed by aircore, RC and/or diamond drilling.
“The Paterson Province is a highly fertile district with enormous potential for new copper-cobalt discoveries under thin sand cover,” Encounter Resources managing director Will Robinson said in the company’s announcement to the Australian Securities Exchange.
“This partnership with IGO is just what Yeneena needed.
“Deploying a suite of new exploration methodologies in 2019 has provided a whole new perspective on the mineral potential at Yeneena.
“We look forward to continuing this exciting partnership with IGO to refine and test a number of large-scale copper-cobalt targets at Yeneena in 2020.”