31 August 2012
Company Announcements Office
Australian Securities Exchange
4th Floor, 20 Bridge Street
Sydney NSW 2000
Level 7, 600 Murray Street
West Perth WA 6005
PO Box 273
West Perth WA 6872
P 08 9486 9455
F 08 6210 1578 www.enrl.com.au
ASX : ENRBM7 Prospect
Yeneena Exploration Update• Tenement granted over southern extension of BM7
• 2.5km section of geophysical anomaly to be drill tested subject to completion of heritage survey
T4 Prospect
• 5,700m aircore drilling program completed
• Preliminary XRF data identifies four corridors of copper anomalism
The directors of Encounter Resources Ltd ("Encounter" or "the
Company") are pleased to provide an update on exploration
activities at the Yeneena project in the Paterson Province of
Western Australia.
Exploration License E45/2805 has been granted. This tenement
covers an area of 210km2 and importantly hosts a
12km segment of the McKay Fault Zone running south from
BM7.
Drilling by Encounter has identified an 8km long copper
regolith anomaly along the McKay Fault extending from BM6 in
the north to BM7 in the south. Recent RC and diamond drilling
at BM7 has intersected copper mineralisation at BM7 over an
area 1km wide at the north boundary of E45/2805 (Figure
1).
The copper mineralisation at BM7 is focused at the
intersection of the McKay Fault and a series of north east
trending faults. This intersection is coincident with a 3km
long geophysical anomaly (conductivity low) that is
interpreted to represent a broad zone of silicification and
dolomitisation (Figure 2).
The close spatial relationship between the area of copper mineralisation at BM7 and the geophysical anomaly infers the remaining untested portion of the geophysical anomaly may significantly extend the copper mineralisation identified at BM7.
BM7 Next Steps
Core cutting and sampling is continuing with two diamond
holes remaining to be cut and sampled and three holes
currently in the laboratory awaiting analyses.
A heritage survey is planned for E45/2805 to facilitate
drilling of the next 2.5km of the geophysical anomaly at BM7.
It is anticipated that the survey will be completed in
September- October 2012 and drilling will commence shortly
thereafter in the cleared areas.
Previous stratigraphic diamond drilling at the T4 prospect,
an area totally covered by sand dunes, has confirmed the
presence of copper sulphides in association with magnetite
alteration within Rudall Complex metamorphic rocks. A
magnetic anomaly with a strike-length of approximately 4km is
present at T4. It is interpreted that this large anomaly
represents magnetite alteration associated with copper
mineralisation.
Assays have been received from the two diamond drill holes
drilled at T4. The analysis confirms that zones of elevated
copper anomalism (300-1000ppm copper) are associated with
more intense magnetite alteration. Magnetic susceptibility
testing of the holes is in progress to allow analysis of the
original airborne magnetic modeling to ensure drilling
intersected the main geophysical anomaly.
A track mounted aircore rig has completed a 160 hole (5700m)
drill program at the T4 prospect. Broad spaced drill lines
where designed across the southern half of the Rudall Complex
Inlier to identify zones of stronger copper mineralisation
and to test a series of geochemical targets around the margin
of the Inlier identified at T4.
This drilling confirmed a shallow cover sequence and strongly
stripped regolith profile. The majority of holes drilled over
the main geophysical anomalies intersected 7-10m of cover and
then progressed directly into 10-15m of saprolitic
metamorphic rock. Due to the strongly stripped nature of the
regolith profile at T4 any oxide or supergene dispersion from
a primary copper sulphide horizon is likely to be narrow. It
is therefore considered that any coherent copper anomalism
identified in this broad spaced program is potentially
significant.
Initial handheld XRF analysis of the aircore samples has
defined four corridors of copper anomalism that extend from
1-2km in strike length. The copper corridors appear to be
structurally controlled and are located adjacent to the area
of magnetic anomalism. Importantly it appears none of the
three stratigraphic diamond holes completed at T4 have
crossed any of these four corridors. Following the receipt of
geochemical analysis of samples from the aircore drilling
further shallow drilling and/or geophysical surveys are
planned to define targets for follow up RC or diamond
drilling at T4.
The Yeneena project covers 1400km2 of the
Paterson Province in Western Australia and is located 40km SE
of the Nifty copper mine and 30km NW of the Kintyre uranium
deposit (Figure
4). The targets identified are located adjacent to major
regional faults and have been identified through
electromagnetics, geochemistry and structural targeting. The
targets are hosted within
sediments of the Broadhurst Formation in a similar geological
setting to the Nifty copper deposit
(total resource of 148.3mt @ 1.3% Cu - Straits Resources Ltd,
2001).
The information in this report that relates to Exploration Results is based on information compiled by Mr. Peter Bewick who is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Bewick is a full time employee of Encounter Resources Ltd and has sufficient experience which is relevant to the style of mineralisation under consideration to qualify as a Competent Person as defined in the 2004 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Bewick consents to the inclusion in the report of the matters based on the information compiled by him, in the form and context in which it appear
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