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Encounter Resources Ltd, accelerating activity

Team Veye | 22 Dec 2020 ASX - ENR
Encounter Resources Ltd, accelerating activity

Encounter Resources Ltd (ASX: ENR)

Copper-Gold System Emerging at Lamil Project, Paterson Province

The directors of Encounter Resources Ltd Encounter Resources Ltd (ASX: ENR) (“Encounter”) on 18 December 2020 announced assay results from the 17 hole (3,200m) RC drill program at Lamil.

(Graphic Source – Company Reports)

  • RC drill program has expanded the copper-gold footprint at the 100% owned Lamil Copper-Gold Project (“Lamil”), located 25km northwest of Newcrest Mining Ltd.’s (ASX: NCM) Telfer copper-gold mine, in the Paterson Province of Western Australia (“WA”).
  • A potentially significant copper-gold mineral system is emerging with multiple stacked copper-gold lodes and copper grades strengthening to the south.
  • At the Dune Prospect (14 holes), significant primary copper-gold mineralisation has been discovered, with intersections over 800m and remaining open, with strengthening copper and multi element pathfinders (Te, Sb, Bi) to the south: ETG0208
  • Gap Prospect (2 holes) - supergene gold zone expanded both north and south and remains open in all directions:
  • 14m @ 1.1g/t Au from 93m in ETG0218
  • 36m @ 0.6g/t Au from 77m including 4m @ 2.8g/t Au from 83m in ETG0219
  • Elsa Prospect (1 hole) - drilling of an IP chargeability anomaly intersected strongly developed sulphide zones with narrow zones of copper-gold mineralisation.
  • Follow up RC drilling across all three prospects to recommence in January 2021.

(Chart source: TradingView)

Regain 100% of West Tanami Gold Project – Activity to Accelerate

The directors of Encounter Resources Ltd on 14 December 2020 announced that Encounter will regain 100% control of the 100km long West Tanami Gold Project in WA. (Data Source – Company Reports)

 

Veye’s Take

The recent Winu and Havieron discoveries demonstrated the copper-gold scale potential of the Paterson Province. Encounter Resources have taken important steps forward at Lamil in this latest program intersecting primary copper-gold mineralisation in broad spaced RC drilling. The latest drilling also highlights stacked layers of mineralisation and a strengthening copper signature, together with multi-element vectors. This indicated that it was proximal to the core of the system. Regaining 100% of the West Tanami Gold Project, Encounter is back in control of a major prospective land position, in a strong gold market, with immediate high quality drill targets for follow up in 2021. The stock is well above its 50 MA moving averages on its monthly t/f. After some correction, RSI is indicating a reversal. It can have the potential of growing strongly in the short to medium term. Veye maintains a "Hold" on “Encounter Resources Limited” at the current price of $0.185

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