Encounter Resources Ltd. announced that the first drilling at Jessica (South32 farm-in) in the NT has intersected copper mineralisation in an IOCG setting at Zeta. Jessica covers ~10,300km2 along key structural corridors east of Tennant Creek and is prospective for sediment-hosted copper and IOCG style deposits. Reprocessing of seismic data that extends through Jessica was completed by HiSeis, to provide greater detail of the geology and structure in the upper 1,000m.

A 2km spaced gravity survey was also completed with 1km spaced gravity infill data collected over a series of high priority magnetic targets. The seismic reprocessing and gravity surveys have identified a series of targets for drilling including the Zeta IOCG target. Zeta is a significant and discrete gravity feature coincident with a prominent magnetic feature on the margin of a large interpreted intrusive body.

In addition, there is a discrete seismic reflector immediately underlying Zeta (ASX announcement 28 October 2022). Two diamond drill holes have been completed at the Zeta target (Z23DD001 & Z23DD002). Z23DD002 drilled through the Georgina formation before intersecting basement at 448.2m.

Proterozoic rocks below this depth consisted of a strongly red rock (hematite dusted k feldspar) altered felsic - intermediate porphyritic volcanic rock down to 578m. The red rock alteration becomes more variable beyond this depth until a mafic volcanic (basalt) was intersected at 662.75m depth. Quartz carbonate veining containing chalcopyrite was intersected from 664.55m - ~667.75m depth.

The chalcopyrite is fine to medium grained occurring as isolated grains within thin (2mm - 7mm) carbonate veins. Trace chalcopyrite was observed in veins beyond this interval until ~750m. Minor chlorite & epidote alteration was associated with the mineralised veins.

The hole terminated in basalt at 796m. Z23DD001 drilled through Georgina Basin sediments until basement was intersected at 413.7m depth. Basement rocks below this depth consisted of dolerite and basalt with hematite alteration associated with late quartz carbonate veins.

Minor chalcopyrite and bornite was observed in these quartz - carbonate veins between 456.4m - 458m. The hole was terminated in dolerite at 700.1m depth. The red rock alteration and copper mineralisation in Z23DD002, in addition to the mineralised veins containing chalcopyrite + bornite, intersected within similar geology in Z23DD001 represent an encouraging start to exploration at Jessica.

Assay results from the holes are expected in the December 2023 quarter. Geophysical techniques are being evaluated to vector into the best parts of the Zeta mineral system. The 6,500m diamond drill program at Jessica/Carrara is ongoing through to November 2023.

The key terms for the farm-in and joint venture agreement include: South32 has the right to earn a 60% interest in Jessica by sole funding $15 million of exploration expenditure within 10 years. During the farm-in phase or joint venture period, South32 may earn an additional 15% interest in Jessica by completing a Scoping Study. Upon South32 earning the Initial Interest or Further Interest in Jessica, a 60:40 or 75:25 joint venture will be formed and in the case of South32 earning the Further Interest, the parties must contribute funds based on their pro-rata interest or dilute according to a standard dilution formula.

Should a party's interest dilute to below 10%, that party's interest automatically converts to a net smelter return royalty. During the farm-in phase, South32 is the Manager of the project. During the farm-in phase, a technical committee comprising representatives from each of Encounter and South32 review and approve annual exploration programs and budgets.

All decisions of the technical committee are decided by majority vote, with South32 having the casting vote. Scoping Study means an order of magnitude technical and economic study of the potential viability of JORC Mineral Resources for the project. Encounter is one of Australia's leading mineral exploration companies listed on the ASX.

Encounter's primary focus is on discovering major copper dominant deposits in Australia.