Encounter Resources Ltd. reported assay results from diamond drilling at Lamil in the Paterson Province of WA. The 100%-owned Lamil Project covers an area of ~61km2 and is located 25km northwest of the major copper-gold mine at Telfer, owned by Newcrest Mining Ltd. 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. The Dune prospect is located in the northwest of the Lamil project and consists of a laterally extensive copper-gold system, outlined by broad spaced RC drilling over 1km of strike.

The mineralisation at Dune is hosted in metasedimentary rocks of the Proterozoic Lamil group which also host the Telfer, Havieron and Winu copper-gold deposits. Dune is situated close to the intersection of the prospective contact between the Upper Malu and Telfer Formations with the interpreted fold axial plane in the north western part of the Lamil Dome. Prior drilling at Dune intersected multiple, stacked, copper-gold reefs in drill hole ETG0243 within a thick prospective package of interbedded siltstones and quartzites.

This package is analogous to the Telfer formation siltstones and Upper Malu quartzites which are important hosts of Au-Cu reefs at the Telfer deposit. Two holes (ETG0244 & ETG0245) were completed in September 2022 to test for lateral and down plunge extensions of the prospective package intersected in ETG0243. Drillhole ETG0244 has further expanded the footprint of the mineral system at Dune.

It was collared 200m north-west of ETG0243 and intersected copper-gold reefs higher in the hole than expected including: 0.3m @ 21.5g/t gold and 3.8% copper from 175.2m. 0.2m @ 15.9g/t gold from 201.9m. 0.18m @ 11.3g/t gold and 6.48% copper from 206.57m in ETG0244.

The nearer surface copper-gold reefs intersected in ETG0244 are proximal to prior high-grade RC drill intersections at the base of the weathered profile at Dune including: 10m @ 2.8g/t gold and 812ppm copper from 94m in ETG0015. 4m @ 3.3g/t gold and 1,400ppm copper from 74m in ETG0016 The relationship between the copper-gold reefs intersected in ETG0244 and the supergene intersections in ETG0015 and ETG0016 will be investigated. ETG0244 intersected the target prospective package (projected from previous hole ETG0243) of altered interbedded siltstones and sandstones from 355m to 474m.

In ETG0244 the target package carried lower copper-gold grades than in ETG0243. However, an unexpected result from ETG0244 was a deeper intersection of copper-silver mineralisation, hosted by a tetrahedrite-chalcopyrite bearing vein with epithermal textures. This is the first time this style of mineralisation has been recognised at the Lamil project.

Assay results from this vein returned: 0.75m at 268g/t silver and 2.5% copper from 616.65m in. ETG0244: Tetrahedrite (a copper-silver mineral) has a common association with high-sulphidation epithermal deposits and may represent a new untested target-style at Lamil.