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


Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.