Encounter Resources : High Grade Copper Assays Over 6km At Sandover - NT

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High Grade Copper Assays Over 6km At Sandover - NT

• Surface sampling at the Sandover Copper Project ("Sandover") in the Northern Territory has confirmed high grade copper mineralisation (up to 20.9% Cu) at four separate areas totalling over 6km of strike
• The outcropping shale units that contain copper mineralisation have been mapped to extend for more than 20km of strike
• Copper mineralisation at Sandover is similar in age and setting to the giant deposits of the Zambian copper belt
• A historic airborne EM survey covering a part of the outcropping copper bearing horizon is being reprocessed to aid in target definition
• Further on-ground mapping and sampling at Sandover is planned to start in March/April 2022

The directors of Encounter Resources Ltd ("Encounter") are pleased to provide assay results from the surface sampling and mapping conducted at the large scale Sandover project in the Northern Territory.

Commenting on the high grade copper at

Sandover, Managing Director, Will

Robinson said:

"The confirmation of outcropping high grade copper over a large area is a promising start to exploration at Sandover.

Sandover covers a Zambian copper belt aged, sub-basin on the southern margin of the Georgina Basin, approximately 170km north of Alice Springs.

Access is excellent with the Stuart Highway and Ghan railway extending through the western margin of the project.

Further areas of interest have been identified at Sandover and will be sampled at the start of the 2022 field season.

We are engaging with experts in Zambian style copper deposits to assist in the design of exploration programs to fast track this emerging copper opportunity in the Northern Territory."

Figure 1 - Sample Location Areas 1 & 2 at

Sandover in October 2021 (refer Figure 2)

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Background

Sandover is located 170km north of Alice Springs and covers a major structural corridor on the southern margin of the Georgina Basin. Access is excellent with the Stuart Highway and Ghan railway extending through the western margin of the project. Historical exploration at Sandover has mapped copper mineralisation over 20km of strike in a stratiform position.

Sandover is interpreted to represent a locally preserved Neoproterozoic depocentre, overlain by more extensive Cambrian Georgina Basin sediments. A number of the major elements of the classic Zambian style sediment-hosted copper system are present at Sandover.

Exploration Activity

In October 2021, field mapping and rock chip sampling was completed at Sandover to ground truth the previously mapped outcropping copper.

Sampling was conducted in four field areas located up to 6km apart (Figure 2). Each area confirmed the presence of an outcropping red-bed sandstone sequence with multiple, narrow but strike extensive, grey shale units containing copper oxide mineralisation (malachite). Sampling of copper mineralisation at surface returned assays up to 20.9% Cu and a suite of highly anomalous pathfinder elements (Zn, Ag, As, Bi, Mo and Pb) (refer Table 1). There has been limited prior drilling completed at Sandover between 1966 and 1970 (refer Figure 2). Two drill holes were completed by previous explorers near Area 2 and no prior drilling has been completed at Area 1.

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Next Steps

Encounter is engaging with experts in Zambian style copper deposits to design an exploration program to fast track this emerging exploration opportunity. Exploration will focus on identifying extensions to the reduced units within the basin along strike and under cover. There will be a particular emphasis on where these units intersect long-lived basin forming structures which are areas with the potential to host major mineral deposits.

Given the potential significance of the copper horizon at Sandover, the project area has been expanded to over 4,700km2.

Historical data collation and integration is ongoing. Inspection of historical drill core available in the Alice Springs core library from Sandover will be completed in March-April 2022

An airborne EM survey covering part of the area of the outcropping copper oxide mineralisation has been obtained. This survey is being reprocessed to assist in mapping the prospective conductive host geological unit as it dips under cover. Furthermore, an expanded EM survey is expected to be flown across the extents of the mapped copper mineralisation.

Further regional surface mapping and sampling of the copper mineralised shale units will commence in March-April 2022.

Sandover also includes known pegmatite occurrences with potential for lithium and other critical metals which will continue to be investigated in conjunction with the copper exploration activities.

Photo 4 - Sample SA000013 - 6.3% Cu (Area 2)

Photo 6 - Sample SA000036 - 4.5% Cu (Area 4)