Encounter Resources defines a 1.2km copper-gold target at Elsa in WA after assays hit shallow mineralisation, with deeper drilling planned to test for a sulphide-rich system.
Encounter Resources (ASX:ENR) is shifting its drill rigs back to the Elsa prospect in Western Australia after assays defined a priority copper-gold zone, the company said Wednesday.
Assays from broad-spaced RC drilling funded under the EIS co-funded program hit shallow copper-gold mineralisation across multiple adjacent holes at Elsa. The results outline a 1.2km-long target on the northern margin of an interpreted Havieron-style breccia complex.
Encounter plans to start follow-up RC drilling at Elsa once a heritage survey is complete and after it finishes the current drill program at Parbo. Deeper RC and diamond drilling will test beneath the shallow mineralisation and an extensive preferential weathering zone. The company also plans drilling to define the southern and western margins of the interpreted breccia complex.
"Prior drilling at Elsa intersected an extensive breccia and alteration system containing zones of copper-gold anomalism," executive chairman Will Robinson said. "One of the key objectives of this RC program was to better understand where the higher concentrations of copper and gold occur within that broader system."
Robinson said the recently completed program has identified a zone of focus, intersecting significant copper-gold mineralisation that coincides with extensive preferential weathering extending over 200m from surface. "We still haven't reached fresh rock," he said. "That suggests the potential for a more sulphide rich system at depth, making this a priority target for the next phase of drilling."
Highlights from the latest batch of assays included drillhole ETG0262, which intersected 16m at 0.3% copper at the northern end of the eastern drill line. An additional hole 200m north of ETG262 did not intersect further copper mineralisation. The company said further work is planned to understand the context and controls of the copper intersected in ETG262.
Elsa sits at the southeast end of the Lamil dome, where an interpreted intrusive-related system anomalous in copper, gold, arsenic, molybdenum and bismuth is centred around a series of magnetic anomalies.
ENR shares rose 4.35% to A$0.20, giving the company a market capitalisation of A$128.6 million.
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