Encounter Resources: Jessica and Carrara Projects Update - 27 September 2024
ENR (ENR) Share Update September 2024 Thursday 26th
Encounter Resources Updates on Jessica and Carrara ProjectsEncounter Resources Limited (ASX: ENR) has announced significant updates on its Jessica and Carrara copper projects in the Northern Territory, following extensive exploration activities in 2023.
Instant Summary:
- 7,200m of diamond drilling completed at Jessica and Carrara in 2023.
- South32 prioritizes copper exploration at Jessica, adding 811km2 to the Jessica Farm-in Agreement.
- Encounter regains 100% control of the Carrara project as South32 withdraws.
- 2,500m diamond drilling at Jessica to commence in October 2024.
- Deep seeking MIMDAS geophysical survey scheduled for May 2025 at the Zeta target.
Project Updates
Encounter Resources Limited has provided an update on its Jessica and Carrara copper projects in the Northern Territory. The company completed 7,200 meters of diamond drilling at both projects in 2023. Following the evaluation of these drilling results and further reprocessing of seismic data, South32 has decided to prioritize copper exploration at the Jessica project.
As part of this decision, additional granted tenure of 811 square kilometers has been added to the Jessica Farm-in Agreement. Concurrently, Encounter has regained 100% control of the Carrara project, with South32 withdrawing from the Carrara Farm-in Agreement.
Exploration Plans
A 2,500-meter diamond drilling program is set to commence at Jessica in October 2024. This program aims to test new targets identified through seismic reprocessing and interpretations from the 2023 drilling. Additionally, a deep seeking MIMDAS geophysical survey at the Zeta target is scheduled for May 2025, which could refine the focus for follow-up drilling.
Background and Technical Details
Jessica covers approximately 8,700 square kilometers along key structural corridors east of Tennant Creek and is prospective for sediment-hosted copper and IOCG style deposits. Reprocessing of seismic data by HiSeis has provided greater detail of the geology and structure in the upper 1,000 meters. A 2-kilometer spaced gravity survey, along with 1-kilometer spaced gravity infill data over high priority magnetic targets, has identified a series of drilling targets, including the Zeta IOCG target.
Two diamond drill holes completed at the Zeta target in 2023 intersected zones of hematite alteration and quartz carbonate veining containing chalcopyrite and bornite. Further seismic reprocessing and interpretation, integrating 2023 drilling data, have generated new targets for testing at Jessica.
The prioritization of the Jessica project by South32 and the addition of new tenure could positively impact Encounter Resources' stock, as it signals confidence in the project's potential. Regaining control of the Carrara project allows Encounter to independently evaluate and potentially develop this asset further. The upcoming drilling and geophysical surveys at Jessica could provide significant data, potentially leading to new discoveries that may boost investor confidence.
Investor Reaction:
Analysts are likely to view South32's decision to prioritize Jessica as a positive development, indicating strong potential for copper deposits. The withdrawal from Carrara might raise questions, but Encounter regaining full control could be seen as an opportunity for focused exploration. Investor sentiment will depend on the results of the upcoming drilling and surveys.
Conclusion:
Investors should keep a close eye on the progress of the Jessica project, particularly the results from the upcoming drilling program and geophysical surveys. The strategic decisions and exploration activities undertaken by Encounter Resources could have significant implications for the company's future prospects and stock performance.