Encounter Resources Limited, active exploration programs in world-class minerals beltsTeam Veye | 29 Sep 2020 ASX - ENR
Encounter Resources Limited (ASX: ENR)
BHP teams up with Encounter in Northern Territory Copper Hunt
The directors of Encounter Resources Limited (ASX: ENR) (“Encounter”) on 24 September 2020 announced that the company had entered into an Option Agreement in relation to Elliott. The Option Agreement provides BHP with the right to enter an earn-in and joint venture agreement covering Elliott following the completion of a jointly designed and funded validation program.
(Chart source: TradingView)
- BHP and Encounter have entered into an Option Agreement covering the 4,500sqkm Elliott Copper Project (“Elliott”) in the Northern Territory (“NT”)
- Option Agreement provides BHP with the right, following the completion of a jointly designed validation program, to enter an earn-in and joint venture agreement to earn up to 75% interest in Elliott by spending up to $22 million over 10 years
- Elliott represents a compelling first mover copper opportunity in a high quality jurisdiction:
- Located at a major structural intersection on the southwestern margin of the Beetaloo Basin
- Contains the key conceptual criteria for the formation of sedimentary copper with the target sequence being undercover and untested
- Standout copper-in-groundwater anomaly which is supported by surface geochemical sampling at Elliott
- Elliott was first identified by analysing new datasets generated by Geoscience Australia, as part of the Federal Government’s Exploring for the Future Program
- Encounter retains 100% control of five other copper projects in the NT covering a further 10,300sqkm (Data Source – Company Reports)
New data has shone a light on the potential for copper to be found under shallow cover in the Northern Territory. Encounter moved early and aggressively to secure first mover opportunities in this new frontier. Encounter is teaming up with BHP in the search for Tier 1 copper deposits at Elliott. It looks forward to working alongside the highly respected BHP exploration team to validate this compelling opportunity. The stock is trading above its strong support on at $0.19 and also above 50, 100 and 200 MA on both daily and monthly t/f. It can have the potential of giving good returns in the medium to long term. “Buy” was given to “Encounter Resources Limited” at the price of $0.145 on 1 July 2020. It has already grown by more than 34% in just three months until now. Veye maintains a "Buy" on “Encounter Resources Limited” at the current price of $0.195
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