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Encounter Resources Ltd (ASX:ENR) has increased the niobium and rare earth element (REE) mineralisation of its Green target in WA’s West Arunta region, informing the market that the carbonatite complex associated with the target now measured 4 kilometres over strike.
Nevertheless, investors seemed wary of the news, with Encounter stock slumping throughout the day: at 15:16 AEDT, shares were trading at 55 cents, a fall of 10.57% since the market opened.
According to the report, drilling work in the target’s east showed high-grade mineralisation, including 22 metres at 1.3% niobium oxide (Nb2O5) from 70 metres including 2 metres at 2.1% Nb2O5 from 70 metres in one hole; and 37metres at 1.0% Nb2O5 from 67 metres to EOH (end-of-hole) including 2 metres at 2.0% Nb2O5 from 87 metres.
Encounter has progressed closer-spaced aircore drilling to delineate stronger zones of niobium and REE mineralisation close to the surface – with many of these holes hitting mineralisation – and is also looking ahead to a program of reverse circulation (RC) drilling to begin in August.
Executive Chairman Will Robinson said that even at this early stage, exploration was showing the target’s potential.
“Shallow aircore drilling has confirmed that Green is a large carbonatite complex that is well
mineralised in niobium & REE with numerous holes ending in mineralisation,” he said.
“Having mapped an extensive mineralisation footprint with aircore drilling, an RC rig will now be utilised to define, and test the depth extent of the mineralisation discovered at Green.
“In particular, it is encouraging to see the complex widening in its central part, which represents the priority for RC follow-up.”
