Encounter Resources (ASX: ENR) is preparing to spin the diamond drill into the new sulphide zone at the BM7 discovery, which is at the Yeneena project in Western Australia.
Yeneena is strategically located 40 kilometres SE of the Nifty copper mine, and is hosted within sediments of the Broadhurst Formation - in a similar geological setting to the Nifty. Newcrest's (ASX: NCM) Telfer gold/copper deposit is 30 kilometres SW.
Exploration at the BM7 prospect being conducted as part of the Antofagasta (LON: ANTO) earn-in agreement. Antofagasta is one of the world’s largest copper producers and explorers and has a market cap. of over $8 billion.
The initial four hole program has been designed in conjunction with Antofagasta to target below the 800 metre long zone of copper sulphide mineralisation identified in the reverse circulation program.
The 15 hole reverse circulation drilling program for 3200 metres wrapped up in May, which confirmed that the zone of intensely dolomite altered shale at BM7 is anomalous in primary copper sulphide mineralisation.
Within this dolomite alteration zone a number of the RC drill holes ended in sulphide copper mineralisation including: 6 metres at 0.7% copper from 150 metres; and 30 metres at 0.4% copper from 118 metres.
Antofagasta earn-in agreement
Antofagasta may earn a 51% interest in tenements E45/2658 and E45/2805 (433km2) within the Yeneena project (around 30% of Encounter’s Yeneena land holding) by incurring expenditures of US$20 million over a five year period.
Antofagasta injected a private placement of US$2 million into Encounter through a private placement at $0.21 per share.
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