Encounter Resources Poised To Expand Exploration After A$10.5 Million Placement

Encounter Resources Ltd (ASX: ENR) is cashed up to accelerate and expand its upcoming drill program at the Aileron Project in the West Arunta region of Western Australia after raising A$10.5 million via a placement.

The strong support from new and existing institutional, sophisticated, corporate, and professional investors has helped Encounter increase its cash position to ~A$16 million.

The shares were placed at A$0.22 per share, representing a 7.5% discount to the 5-day volume weighted average price of A$0.238.

High-grade niobium and rare earths discoveries

In 2023, Encounter confirmed the presence of shallow, high-grade niobium-REE (rare earth elements) mineralised carbonatites at several prospects including Emily and Crean.

Highlight results from the 2023 campaign include 12 metres at 2.3% niobium oxide and 0.85% TREO (total rare earth oxides) at Emily and 4 metres at 3.8% niobium oxide and 1.9% TREO at Crean.

Encounter also discovered large-scale primary niobium-REE carbonatite-hosted mineralisation within a 5-kilometre corridor stretching from Crean to Hurley.

Drill program

The initial focus of the air core drilling in 2024 is to identify near surface anomalism/mineralisation at the Southern Targets along the Luni corridor (Emily, Green, Joyce) and the Northern Targets (McIlroy, Macklin, Crean-Hoschke and Hurley).

The air core rig will also complete reconnaissance drilling at the Mawson and Wordie targets to determine bedrock geology and establish cover conditions prior to deeper RC/diamond drilling.

Diamond drilling

Diamond drilling (EIS co-funded by the WA Government) is also scheduled to start at Perce in April 2024.

Guided by initial observations from the air core drill program, additional RC/diamond is planned to assist in establishing the dimensions of the mineralised carbonatites at Aileron.

The RC/diamond drilling will provide additional samples for mineralogical and metallurgical testing.

Encounter Managing Director Will Robinson said: “It’s a pivotal few months coming up at Aileron as we complete our first pattern-testing of numerous compelling targets in this highly fertile, new mineral belt.”

Robinson said the company is particularly excited to complete the first drilling at the large, interpreted intrusions at Green and Joyce located directly east of the Luni discovery made by WA1 Resources Ltd (ASX: WA1).

Articles of Interest