Encounter Resources (ASX:ENR) has begun a diamond drilling program in collaboration with mining giant IGO (ASX:IGO) as part of a $15 million earn-in agreement over the Yeneena Project in Western Australia.
Encounter, which has a $154.25 million market capitalisation, says the drilling has been designed to target high-value sediment-hosted copper and comprises 5 diamond holes and 26 aircore (AC) holes.
The drilling will be operated and funded by IGO under the $15 million earn-in agreement, and the companies expect results to be in-hand in December this year.
Drilling has begun at the Lookout Rocks areas to test the down plunge position of known mineralisation up to 1% copper identified in previous diamond drilling and is scheduled for completion in September this year.
Speaking on the start of drilling, Encounter Resources Managing Director Will Robinson says: “The Paterson Province is one of Australia’s most prospective regions for new copper discoveries under shallow cover.
“We are pleased to report that diamond drilling has commenced under the earn-in by IGO”
We are pleased to report that diamond drilling has commenced under the earn-in by IGO. The upcoming diamond and aircore drill programs will test a number of high-quality targets between July to September 2023.”
Encounter Resources is a mineral explorer with a focus on discovering major copper-dominant deposits in Australia. The company currently controls a ‘large’ portfolio of wholly owned projects in Australia’s ‘most exciting’ mineral provinces considered prospective for copper and critical minerals.
The Yeneena Project is located in the Paterson Province of Western Australia and represents an earn-in agreement between Encounter and IGO. Encounter Resources had $4.2 million cash at hand as of 31 March 2023, as stated in its latest quarterly report.
IGO is an ASX-listed miner with a $11.70 billion market capitalisation focused on discovering, developing, and delivering products critical to clean energy.
Write to Adam Drought at Mining.com.au
Images: Encounter Resources Ltd
