Encounter Resources Ltd (ASX: ENR) has announced an encouraging update on its 100% owned Lamil Copper-Gold Project in the Paterson Province of WA.
The company reported that diamond drilling has commenced at its Lamil project.
ENR said that the initial program of up to four diamond drill holes will test multiple Induced Polarisation (IP) chargeability anomalies identified in the 2019 survey adjacent to broad zones of copper-gold mineralisation intersected in shallow historical drilling; and an open, broad zone of gold-copper mineralisation at the Gap prospect.
The company noted that the level of metal anomalism in the historical drilling is considered significant given the recent learnings from the Winu copper-gold discovery made by Rio Tinto Ltd and the Havieron gold-copper project operated by Newcrest Mining Ltd and Greatland Gold Plc.
The company said that the current drilling program is co-funded for up to $150,000 under the WA Government Exploration Incentive Scheme.
ENR said that the diamond drilling schedule is expected to be completed in April with assay results anticipated in May 2020.
Lamil project
ENR’s wholly-owned Lamil Copper-Gold Project is located in the Paterson Province of WA. The project covers an area of ~61 sq. km and is located 25 km northwest of the major gold-copper mine at Telfer, owned by Newcrest.
Shallow drilling completed in the 1980s by Newmont at Lamil, which was targeting a series of magnetic anomalies, had intersected thick zones of strong copper-gold anomalism.
Drill core from five holes drilled at Lamil in the 1980s by Newmont were relogged and contain zones of pervasive alteration, extensive pyrrhotite development and copper-bearing sulphide from within 50m of surface.
Geophysical surveys identify new drill targets
ENR had completed aeromagnetic and IP surveys at Lamil in the second half of 2019. The company said that these geophysical surveys have significantly enhanced geological and structural interpretation of the project area and have highlighted compelling new drill targets.
The company said that a review of prior gold drilling geochemistry has identified a new drill target with a clear copper-gold-bismuth proximal signature and vector to potentially stronger mineralisation.
The company reported that Target 1 was IP chargeability anomaly below thick zones of copper-gold anomalism; Target 2 was IP chargeability anomaly coincident with magnetic low; and Target 3 was Gap Prospect, an open broad zone of gold-copper mineralisation.
Target 1 – IP chargeability anomaly below thick zones of copper-gold anomalism
The company said that the historical drilling in the Target 1 area by Newmont in the 1980s, targeting gold, had intersected thick zones of strong copper-gold anomalism in shallow drilling.
Significant hits included 58m @ 922ppm Cu from 32m to end of hole (LSR87-31); 33m @ 1,004ppm Cu and 0.45g/t Au from 96.6m (LSPC1) including 5.5m @ 0.38% Cu & 1.2 g/t Au from 124.7m; and broad zones of copper-gold anomalism (LHS88-4) with narrow intersections up to 1.2% Cu and 2.1g/t Au (note wide zones of missing assays).
ENR said that the Newmont drilling targeted a magnetic anomaly with a number of holes ending in mineralisation.
The company reported that the IP survey has highlighted a semi-coincident chargeability anomaly below the broad zones of copper and gold anomalism intersected by the shallow historical drilling.
This anomaly is interpreted to extend across two 400m spaced IP lines and sub-parallel to an ENE trending interpreted fault.
The company said that this target will be drill tested by one or two diamond holes to a depth of 400m to determine if the chargeability anomaly represents a stronger accumulation of copper-gold mineralisation.
Target 2 – IP chargeability anomaly coincident with magnetic low
ENR reported that chargeability anomalies have been identified across the three southern IP lines adjacent to a corridor of magnetic anomalism.
The company said that these anomalies outline an 800m WNW trending corridor that is discordant to stratigraphy.
Historical drilling targeted on the magnetics, intersected copper sulphide mineralisation including 15m @ 0.22% Cu from 42m in LSPC3. The company said that the chargeability anomalies were not tested by the prior drilling and the mineralisation in LSPC3 remains open at depth.
The company announced that the IP chargeability anomaly to be drill tested in the current program is coincident with a discrete magnetic low that is surrounded by a series of magnetic highs which might represent magnetitic pyrrhotite alteration.
This magnetic low/chargeability high is interpreted to represent stronger pyrite/chalcopyrite accumulation associated with potential higher grade copper-gold mineralisation, within a broader halo of magnetitic pyrrhotite alteration.
Target 3 – Gap Prospect – Open broad zone of gold-copper mineralisation
The Gap prospect is at a structural target located 1km north of Target 1. A section of three 80m spaced RC/diamond drill holes were completed at the Gap prospect in 2017.
ENR said that the most north-eastern hole (ETG0070) on this section contained only narrow bands of gold anomalism.
ETG0068 drilled 80m south-west of ETG0070 contained a thick zone of oxidised gold mineralisation of 30m @ 1.1g/t Au from 96m at the interpreted base of oxidation.
ETG0067, drilled a further 80m south-west of ETG0068, intersected a broad zone of near surface gold-copper mineralisation. Highlights included 122m @ 0.2g/t Au from 38m including 36m @ 0.4g/t gold and 45m @ 566ppm Cu from 124m.
The company said that the gold-copper mineralisation in ETG0067 is coincident with strengthening bismuth (122m @ 30ppm Bi from 38m), as well as strong cobalt, tungsten and tellurium anomalism. This multi-element suite provides a strong geochemical vector to the south-west that will be drill tested in the current program with a 100m step out hole.
ENR reported that the gold-copper mineralisation intersected the Gap prospect is open in all directions with no bedrock drilling within 400m of the prospect
What’s next?
The company announced that Lamil has been awarded a competitive EIS co-funded drilling grant of up to $150,000 from the WA Government.
ENR said that three targets at Lamil will be tested in a program expected to be completed in April with assay results anticipated in May 2020.
Management comments
Encounter Managing Director Will Robinson said: “Recent exploration success has proven the potential of the Paterson Province to host giant copper-gold deposits. Lamil has structural context, a proven deposit model and clear targets where shallow historical drilling intersected broad zones of copper-gold anomalism strengthening to bottom of hole. This initial program will test three large scale copper-gold prospects in the fertile Paterson Province.”