Encounter Resources (ASX:ENR) reports 2 diamond drillholes has been completed at the Dune prospect, within the Lamil Copper-Gold Project in the Paterson Province of Western Australia.
Holes ETG0244 and ETG0245 were designed to test for lateral and down plunge extensions of the prospective package intersected in ETG0243 that contained stacked, copper-gold reefs.
Encounter reports that the initial results are expected in about November or December this year.
ETGO2044 and ETG0245 are being cased for a downhole EM survey to assess the proximal area for conductive features that could represent sulphides accumulations often associated with copper-gold mineralisation.
Encounter Resources Managing Director Will Robinson said initial observations indicate that the EIS co-funded diamond drill program at Dune has extended the target package of interbedded siltstones analogous to Telfer’s Upper Malu formation.
“Drillhole ETG0244 intersected this thick prospective package with multiple quartz carbonate veins containing sulphides (dominantly pyrite and minor chalcopyrite) from less than 355m depth.
“Drillhole ETG0244 intersected this thick prospective package with multiple quartz carbonate veins containing sulphides”
“The hole also contained a new steep vein set which may represent a new untested target at Dune.
“The drillholes are being cased for a downhole EM survey to test for off-hole conductive features which may represent concentrations of sulphides often associated with copper-gold mineralisation at Dune.”.
Initial observations have confirmed the geological model with multiple veins containing sulphides (pyrite and chalcopyrite) intersected within the prospective package in both holes.
In addition, a new steep vein orientation striking sub-parallel to drilling was observed in ETG0244 which may represent a new untested target.
The Dune prospect is located in the northwest of the Lamil project and consists of a laterally extensive copper-gold system, outlined by a broad spaced RC drilling over 1km of strike.
The mineralisation at Dune is hosted in metasedimentary rocks of the Proterozoic Lamil groups which also host the Telfer, Haverion, and Winu copper-gold deposits.
Dune is situation close to the intersection of the prospective Upper Malu formation and the interpreted fold axis in the north-western part of the Lamil Dome.
Prior drilling at Dune intersected multiple, stacked, copper-gold reefs in drillhole ETG0243 within a thick prospective package of interbedded siltstones analogous to Telfer’s Upper Malu formation.
Drillhole ETG0244 intersected the prospective package of altered interbedded siltstones and sandstones from 355m to 474m downhole.
Initial observations of the veining within this zone has noted multiple (<1m) quartz-quartz carbonate veins orientated sub-parallel to bedding and are similar to the mineralised veins seen in ETG0243.
In addition, a new steep vein orientation striking sub-parallel to drilling was observed in the hole which may represent a new untested target.
ETG0245 confirmed the dip of the north-eastern flank of the Lamil Dome and intersected the prospective package at 159m. The package again contained altered siltstones and sandstones.
This hole contained less veining throughout the target package but did intersect a 3.1m wide quartz carbonate vein with blebby pyrite from 262m.
Lamil covers an area of about 61km-square and is located 25km northwest of the major copper-gold mine at Telfer, owned by Newcrest Mining (ASX:NCM).
Lamil is adjacent to a major regional gravity lineament which marks the location of an interpreted significant crustal scale structure that would have acted as a pathway for mineralising fluids during the formation of the Proterozoic aged deposits.
Encounter Resources also completed diamond drilling to test a discrete gravity anomaly at the Elsa Prospect, which is also part of Lamil.
This hole, called ETG0246 intersected a folded sequence of metasediments containing minor pyrrhotite and was completed to 301.1m.
Logging and sampling of three diamond drillholes is in progress prior to submission for chemical analysis.
The diamond drill program at Lamil is co-funded by the West Australian Government’s Exploration Incentive Scheme (EIS) up to $220,000.
Encounter Resources’ primary focus is discovering major copper dominant deposits in Australia. Its assets include a large portfolio in the Patterson Province of Western Australia, a series of camp scale sediment hosted copper opportunities in the Northern Territory, and the 100% owned Aileron IOCG/REE project in the West Arunta region of Western Australia.
It has partnered with leading mid-tier and major producers to advance its extensive project pipeline with more than $25 million of project funding contributed by partners over the past decade.
Currently, Encounter has farm-in agreements in place with world leading resources companies to provide up to $64 million in initial exploration funding.
