THE BOURSE WHISPERER: Encounter Resources (ASX: ENR) has expanded its formal Farm-in and Joint Venture Agreement with BHP covering the Elliott copper project in the Northern Territory.
Encounter Resources said the expansion will increase the size of the Elliott farm in from 4,500 square kilometres to 7,200sqkm while the earn-in amount for BHP to earn a 75 per cent interest has been increased from $22 million to $25 million.
Recent datasets provided by the Northern Territory Geological Survey and Geoscience Australia as part of the Exploring for the Future Program, have provided crucial new data to facilitate exploration in what is a covered, highly prospective and underexplored region of Australia.
New datasets released in 2019 and 2020 supported the conceptual and structural targeting model at Elliott where a standout, copper-in-groundwater anomaly (order of magnitude above background) in the extensive sampling program is located.
A joint BHP / Encounter designed validation program at Elliott was completed earlier in 2021, which involved the compilation, interpretation, modeling and integration of new and existing data packages at Elliott including seismic, airborne EM, magnetics, gravity, gechemistry and hydro-geochemistry.
“Irrespective of the pace of global energy transition, new sources of copper supply are required in the medium term,” Encounter Resources managing director Will Robinson said in the company’s ASX announcement.
“Greenfields exploration success of globally significant, new resources at projects like Elliott is vital to meet burgeoning copper demand projections.
“Encounter identified the Greater McArthur Superbasin in the NT as having significant untested potential for the discovery of large sediment-hosted copper deposits under shallow cover and we now control an extensive portfolio in the region.
“Through our portfolio of 100 per cent-owned copper projects, and an expanded partnership with BHP, Encounter provides exceptional leverage to the premium front end of the copper value chain.
“We are delighted to be working with BHP at Elliott and we look forward to providing shareholders with further updates on the groundbreaking search for Tier-1 copper deposits in the NT.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE