The directors of Encounter Resources Limited announced the commencement of a large magnetic-radiometric survey at the Aileron Cu-REE project (100% ENR) in the West Arunta region. The directors of Encounter Resources Limited ("Encounter") are pleased to announce the commencement of a large magnetic-radiometric survey at the Aileron Cu-REE project (100% ENR) in the West Arunta region. Aileron is located in the West Arunta region of WA ~600km west of Alice Springs.

The project contains several structural and geophysical targets identified through aerial magnetic and gravity surveys. To date, only one diamond hole, EAL001, has been drilled within the project area and targeting a discrete magnetic anomaly (Worsley prospect). EAL001 was partially completed to a depth of 158m in October 2020 and drilled through 5m of shallow cover followed by a brecciated hydrothermal hematite-chlorite-altered granite with a narrow mafic intrusion.

Within these units, zones of increased brecciation and alteration correlate with increased REE anomalism with a distinctive IOCG geochemical signature. The hole ended prior to designed depth due to a mechanical failure. Assays from EAL001 include zones of anomalism in copper (up to 0.1% Cu), gold (up to 48ppb Au), molybdenum (up to 155ppm Mo), niobium (up to 773ppm Nb) and highly elevated rare earth elements (up to 0.8% TREO) consistent with the IOCG deposit model.

In November 2021, a helicopter-supported ground gravity survey and geological reconnaissance activities, including a surface sampling trial were completed at Aileron. A rock chip collected from a ferruginous quartz vein in altered quartzite 7km from EAL001 which returned 0.5% TREO (including 0.1% neodymium-praseodymium, Nd 2 O 3 +Pr 6 O 11). The presence of highly anomalous REE at two separate locations at Aileron, and the carbonatite discovery by WA1 Resources 1km from Encounter's tenement boundary, provide encouragement that an alkaline magmatic hydrothermal system has been active in the region.

Alkaline magmatic systems are known to play an important role in the formation of both IOCG and carbonatite-hosted REE deposits. In August 2022, geochronology completed by the GSWA classified the host sequence and mineralisation events at Aileron are a similar age to the events at Olympic Dam. Importantly, the prospective geology is under shallow cover (5m of cover in EAL001) in contrast to +500m of cover in much of the Gawler Craton in South Australia.

An 8,000 line km airborne magnetic-radiometric survey is due to commence next week at Aileron. The 100m spaced survey will cover 50 strike kms of the project to refine 2023 drilling plans and to define potential new carbonatite and IOCG targets. The survey is expected to be completed in November 2022.