The share price of West Perth-based Encounter Resources has surged more than 27 per cent after the company announced it had discovered additional high-grade copper intersections from its Yeneena project near Newman.
The company said assay results from the BM1 prospect included the highest grade copper intersection to date of 2 metres at 7.6 per cent copper within a broader intersection of 8m @ 3.6 per cent Cu from 18m.
At the close of trade Encounter shares were up 22 cents to $1.02.
"We are delighted to have intersected the highest grade copper to date at the project as well as confirming the north-south continuity of the near surface copper blanket." said Encounter managing director Will Robinson.
The company said the RC/diamond drill rig remains on schedule to commence a deeper drill program next week.
See company statement below:
The directors of Encounter Resources Ltd ("Encounter") are pleased to announce additional high grade copper intersections from the BM1 prospect at the Yeneena project.
Assay results have been received from the north-south aircore drill traverses at the Northern Area copper discovery (see ASX announcement 16 September 2010).
These assay results included the highest grade copper intersection to date from the project of 2m @ 7.6% Cu within a broader intersection of 8m @ 3.6% Cu from 18m. In addition, there were a number of thick, near surface intersections of over 1% copper (see Figure 1).
At the eastern end of the Northern Area, highly anomalous copper mineralisation has been intersected towards the bottom of the shallow aircore drill holes. This mineralisation sits below the base of oxidation within black shales and is interpreted to be transitional to primary in nature. This area is also associated with highly anomalous cobalt mineralisation with several intersections of over 0.1% cobalt (see Table 2). It is interpreted that the mineralisation within this area may be proximal to a primary copper sulphide position.
"We are delighted to have intersected the highest grade copper to date at the project as well as confirming the north-south continuity of the near surface copper blanket." said Managing Director, Will Robinson.
The RC/diamond drill rig remains on schedule to commence the deeper drill program next week.
