Nov 21, 2024

Encounter Resources Hits 116m @ 1.7% Nb2O5 at Green Prospect, West Arunta, Western Australia

Introduction:

Encounter Resources Ltd (ASX: ENR) (Market Cap: $156M | Last Close: $0.345 | Cash: $10M) has reported significant niobium intercepts from its first RC drilling program at the Green prospect within its Aileron project in Western Australia's West Arunta region, highlighted by 116m at 1.7% Nb2O5 from 52m to end of hole.

Drill Results:

116m @ 1.7% Nb2O5 from 52m to EOH (including 28m @ 3.3% Nb2O5 from 62m and 32m @ 2.1% Nb2O5 from 95m) (EAL894)
81m @ 1.5% Nb2O5 from 39m (including 43m @ 2.4% Nb2O5 from 43m) (EAL899)
37m @ 0.5% Nb2O5 from 40m (including 4m @ 1.7% Nb2O5 from 44m) (EAL897)‍
3m @ 0.3% Nb2O5 from 37m (EAL895)

Project Overview:

The Green prospect is part of Encounter's 100%-owned Aileron project located in the West Arunta region of Western Australia. The prospect hosts a large mineralised carbonatite complex over 3km in length containing multiple zones of shallow, high-grade niobium mineralisation.

Green is situated in an emerging mineral province that is attracting exploration interest for its critical mineral potential, particularly niobium and rare earth elements. The project benefits from its location in Western Australia, a Tier 1 mining jurisdiction with excellent infrastructure and a supportive regulatory environment.

Program Details:

The current RC drilling program comprised 34 holes targeting high-grade niobium trends established by previous aircore drilling. Initial results are from the first four holes drilled at the western end of the mineralised system. The program has confirmed extensive, enriched, high-grade niobium mineralisation in the upper portion of the carbonatite complex. Drilling has demonstrated continuity of the high-grade niobium system from WA1's adjacent Luni discovery across the tenement boundary into Green.

Understanding These Results:

The reported intercepts represent some of the thickest and highest-grade niobium drill results achieved to date in the West Arunta region. The 116m @ 1.7% Nb2O5 intercept in hole EAL894 is particularly significant, representing the highest 'grade x thickness' RC drill intercept (197 metre % Nb2O5) returned from the entire West Arunta province to date.

These initial results demonstrate the potential for Green to host coherent, high-grade zones with mineable dimensions within the larger mineralised system. The broad runs of consistent, high-grade niobium mineralisation provide strong encouragement for the economic potential of the project.

Management Commentary:

Will Robinson, Executive Chairman of Encounter Resources, stated:

“Green is a large mineralised carbonatite (+3km long) containing multiple zones of shallow, high-grade niobium mineralisation identified with aircore drilling. The first RC holes completed at the western side of Green demonstrate some of the best, depth extensive niobium mineralisation in the West Arunta. A further 30 RC drill holes have been completed at Green, through the better mineralised zones defined by aircore drilling, and we look forward to providing further assay results in the months ahead.”

Next Steps & Catalysts:

Assay results are pending for the remaining 30 RC holes completed across approximately 2km of strike at the western part of Green. These results are expected to be returned in the coming months.

A diamond drill hole has been completed adjacent to the high-grade niobium mineralisation in hole EAL899 for initial mineralogy and metallurgy work. Metallurgical test work, including mineralogical scanning and initial sighter beneficiation and flotation tests, will be completed in the first half of 2025.

Commodity Outlook:

Niobium is classified as a critical mineral by many countries due to its importance in advanced technologies and limited global supply. It is primarily used in the production of high-strength, low-alloy steels for the automotive, construction, and energy sectors. The growing demand for lightweight, high-strength materials in various industries is expected to drive increasing niobium consumption in the coming years.

Conclusion:

The initial RC drilling results from Green have confirmed the presence of extensive, high-grade niobium mineralisation, building on previous aircore results. With a large mineralised system identified and multiple high-grade zones emerging, Green is shaping up as a notable niobium discovery in the West Arunta region. The pending results from additional RC holes and upcoming metallurgical studies will be crucial in further defining the project's potential.

Sources:

ENR Drill Results Announcement

Additional Figures:

Australia

ASX

Rare Earths

Nov 2, 2024