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- Encounter Resources (ENR) has announced exploration has commenced at the Yeneena Copper-Cobalt Project in the northwest of Western Australia
- It marks the beginning of an earn-in and joint venture agreement with IGO Limited (IGO) announced back in March
- IGO can sole fund $15 million in exploration expenditure for up to seven years, which will earn them a 70 per cent stake in the project
- The works include fine-fraction soil surveying of targets and electromagnetic surveys to refine conductors, both of which were identified last year
- It’s the precursor to drill programs planned for the second half of the year
- Despite the news, both companies finished in the red yesterday. ENR was down 3.48 per cent to 14 cents, while IGO fell 2.29 per cent to $5.12
Encounter Resources (ENR) has commenced ground exploration at the Yeneena Copper-Cobalt Project.
Yeneena comprises more than 1400 square kilometres in the highly prospective Paterson Province, in the northwest of Western Australia.
It marks the beginning of an earn-in and joint venture agreement with mining and exploration giant IGO Limited (IGO), which was announced back in March.
Encounter conducted an extensive suite of advanced geophysics and geochemistry of the Yeneena site last year, which led to the agreement being signed with IGO.
“The successful deployment of a number of modern exploration methodologies in 2019 has generated a suite of new targets at Yeneena. We look forward to now building on this targeting work and drill testing a number of these large-scale copper-cobalt prospects in the second half of 2020.”
Encounter Resources Managing Director, Will Robinson.
IGO can sole fund $15 million in exploration expenditure for up to seven years, which will earn it a 70 per cent stake in the project.
The works that are under way include fine-fraction soil surveying of targets and electromagnetic surveys to refine conductors, both of which were identified in the testing done last year.
Next steps
The company will conduct ground electromagnetic and geochemistry surveys of the targets, which will be completed either this month or next.
Encounter said this will help in designing follow-up drilling programs planned for the second half of 2020.
It also said further exploration will continue through until November, but when that starts will be determined when the current exploration results are in.
In an added bonus for Encounter, its application for the WA Government Exploration Incentive Scheme co-funded drilling grant of up to $150,000 to test the targets at Yeneena has been successful.
Despite the news both companies finished in the red yesterday. ENR was down 3.48 per cent to 14 cents, while IGO fell 2.29 per cent to $5.12.
