Encounter Resources Expands BHP Northern Territory Partnership

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.”








Encounter Resources to Spinout West Tanami Gold Assets

THE BOURSE WHSIPERER: Encounter Resources (ASX: ENR) informed the market of its intention to demerge its wholly owned subsidiary, Hamelin Gold Limited.

As a result, Hamelin will hold the West Tanami gold project, on the back of which it will undertake an IPO and apply for listing on the ASX.

“With the rapid expansion of Encounter’s copper portfolio, including the major ground acquisitions in the NT and the recent farm-in agreement decision by BHP, we believe that the time is right to demerge our highly prospective West Tanami gold assets,” Encounter Resources managing director Will Robinson said in the company’s ASX announcement.

“Importantly, our shareholders will continue to participate in Hamelin via a pro rata in-specie distribution.

“Given the quality of the exploration opportunities within the West Tanami, Hamelin provides an attractive exposure for investors to the systematic modern exploration of this exciting and underexplored belt scale gold project.

“We also believe Hamelin will attract stronger investor attention and valuation in a standalone entity, while allowing Encounter to maintain its focus on its growing copper portfolio in the Paterson Province in WA, the Greater McArthur Superbasin in the NT and the West Arunta region of WA.”







Encounter Resources Drilling at Nazare Gold Project

THE DRILL SERGEANT: Encounter Resources (ASX: ENR) has commenced aircore drilling to test a geochemical anomaly at the company’s Nazare gold project in the Laverton Tectonic Zone in Western Australia, approximately, 150 kilometres east-north-east of Kalgoorlie.

The Laverton Tectonic Zone is one of Australia’s most productive and prospective gold regions that hosts major gold mines at Laverton, Granny Smith, Wallaby and Sunrise Dam.

Encounter Resources has focused its targeting and project generation activities on extensions of this corridor under shallow cover.

Encounter initially acquired a 98 square kilometre Exploration Licence E28/2709 at Nazare targeting the intersection of an interpreted structure extending south-east from the Apollo Consolidated (ASX: AOP) Bombora gold discovery within the interpreted southern extension of the well-mineralised Laverton Tectonic Zone.

The company chose Nazare for an initial trial of an innovative new CSIRO-developed geochemical sampling technique, UltraFine+, a potential breakthrough geochemical sampling technique in areas of thin cover.

The application of Ultrafine+ at Nazare defined a high-quality gold anomaly in an area where traditional geochemistry was ineffective.

This coherent gold anomaly is coincident with major structural intersection at Nazare.

“This initial aircore program at Nazare is the first application of the new CSIRO Ultrafine+ geochemical sampling technique,” Encounter Resources managing director Will Robinson said in the company’s announcement to the Australian Securities Exchange.

“It has generated a high-quality, coherent gold anomaly in an area where traditional geochemistry was ineffective.

“If this potential breakthrough geochemical technique is successful at Nazare, it would have very significant regional implications.

“Accordingly, Encounter has secured approximately 1,000 square kilometres of tenure in the area and Ultrafine+ will be applied regionally if our current aircore drilling successfully intersects sub surface gold mineralisation.”

Encounter is now reviewing this additional ground for additional structural targets where the UltraFine+ technique can be deployed.

An initial 20-hole aircore drill test of the geochemical anomaly generated at Nazare has commenced and assay results are likely to be available in late March 2019.