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Encounter Resources (ASX:ENR) kicks off diamond drilling at Lamil project, WA

ASX News, Materials
ASX:ENR      MCAP $175.4M
11 August 2022 09:46 (AEST)

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Encounter Resources (ENR) has kicked off a 1500-metre diamond drilling program at its Lamil project in Western Australia’s Paterson Province.

The company is targeting a copper-gold system at Lamil just 25 kilometres away from Newcrest’s (NCM) Telfer mine, with two holes to follow up on previous drilling completed at the Dune prospect in the area in September last year.

The WA Government will co-fund this diamond drilling program, with up to $220,000 on offer for Encounter under the state’s Exploration Incentive Scheme (EIS).

Encounter Managing Director Will Robinson said the company was closing in on the core of the copper-gold system at Lamil.

“The diamond drilling completed in late 2021 intersected a thick prospective package containing multiple stacked copper-gold reefs that are open on-section and down-plunge,” Mr Robinon said.

“The drilling also intersected chalcocite-dominant copper mineralisation, demonstrating the system’s ability to produce high-grade mineralisation. This EIS co-funded diamond program will test if the system continues to strengthen down-plunge and down-dip.”

The drilling program is supported by a gravity survey completed by Encounter at Lamil in May this year. The company said it planned to drill test a gravity anomaly identified from this survey, though it was not yet certain if it would test the anomaly through this diamond program or a future reverse circulation (RC) program.

Looking ahead, Encounter said it had several major drilling programs planned throughout the year across its project portfolio.

These will include a 3000-metre program at its Elliott copper project in the Northern Territory, funded by BHP, and a 4500-metre program at the Teneena copper project also in WA’s Paterson Province, funded by IGO.

Shares in Encounter Resources last traded at 15 cents on August 9.

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