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Encounter Resources drill results suggests more gold to come

Published: 12:30 19 Jan 2017 AEDT

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Encounter Resources drill results suggests more gold to come

Telfer West covers an area of about 121 square kilometres and is located 25 kilometres northwest of Newcrest Mining’s (ASX:NCM) major gold-copper operation at Telfer.

At the Egg Prospect, Encounter drilled 38.6 metres at 1 g/t gold from 333 metres and 36 metres at 0.6 g/t gold from 396 metres in the same hole.

This the first hole to be drilled through the entire stockwork corridor from the hanging wall through to the interpreted footwall and has confirmed a system that is highly anomalous in gold.

The thick mineralised package discovered at the Egg Prospect may extend to surface and is open along strike and at depth.

Another hole drilled 4 kilometres north-west of the Egg Prospect intersected strong supergene gold mineralisation that included 4 metres at 7.1 g/t gold from 216 metres.

The gold mineralisation at Telfer West is coincident with the interpreted fold axis of a major 8 kilometre by 5 kilometre dome.

The interpreted fold axis corridor has been partially tested in only three locations along its 8 kilometre strike.

Following these encouraging results, a follow up drill program will commence in March-April 2017, which will be partially funded ($150,000) by a Western Australia Government grant.

Encounter’s share price has increased about 32% during the past one month, last trading at $0.095.

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