Encounter Resources (ASX: ENR) has firmed up “compelling” targets for drilling at its wholly-owned Lamil project near Newcrest Mining’s (ASX: NCM) Telfer gold-copper mine in Western Australia’s Paterson Province.
In addition to its proximity to Telfer, Encounter noted Lamil was in a similar structural setting to Rio Tinto’s (ASX: RIO) Winu copper-gold deposit.
Over the past 18 months, Encounter has completed new magnetic, airborne electromagnetic and ground induced polarisation surveys at the project.
Then, in July, Terra Petophysics’ Barry Bourne was engaged to complete full integration and inversion modelling of these surveys.
Encounter claims this has generated a number of “high quality” gold drill targets at Lamil.
Included in the targets is the Elsa prospect which was identified via an IP chargeability anomaly.
Another target is the Gap prospect where drill results in June returned 30m at 1.1 grams per tonne gold from 96m and 36m at 0.5g/t gold from 28m.
Also to be followed up is the Dune prospect where drilling in 2017 unearthed 4m at 7.1g/t gold from 216m, 10m at 2.8g/t gold from 94m, and 4m at 3.3g/t gold from 74m.
Encounter managing director Will Robinson said the “innovative new geophysical 3D inversion modelling” of the data had provided a “potential step change” in the company’s understanding of the project.
He said the data had also highlighted an untested Havieron-style target which is adjacent to a zone drilled in March.
Encounter’s next drilling program is due to be begin this month.
The “extensive” zones of supergene mineralisation at Gap and Dune will be tested along with the Elsa prospect.
The upcoming campaign will comprise 3,000m of reverse circulation drilling.
Lamil encompasses 61sq km of tenements and is 25km north-west of Telfer.
The Paterson Province has undergone renewed interest in recent years following Rio’s confirmation of the Winu discovery.
In addition to Lamil, Encounter is advancing several other assets across WA and the Northern Territory.
Its projects in the Tanami and West Arunta regions are being explored under a joint venture with Newcrest.