Gold: Encounter and Newcrest are drilling for the big one at Hutch’s Find
Link copied to
Encounter Resources is drilling for “large scale” gold deposits with JV partner Newcrest Mining (ASX:NCM) at the Hutch’s Find project in the Tanami.
Encounter (ASX:ENR) is a prospect generator – a type of explorer that attracts a cashed-up joint venture partner to fund much of the expensive later stage exploration and development costs.
The $28 billion market cap Newcrest is sole funding exploration across a series of joint ventures with Encounter in the Tanami and West Arunta regions of WA:
Hutch’s Find includes a 5km long zone of gold anomalism and, while historic drilling is limited – only 2 holes went below 200m — Encounter knows the area is well mineralised.
Multiple high-grade gold intersections remain open down plunge and along strike, including an 184m deep hole which intersected 19m at 2.3grams per tonne (g/t) from 98m; 10m at 5.4 g/t from 123m; and 0.5m at 17.2g/t from 164.3m. That looks pretty promising.
Shares in Encounter were up 7.7 per cent this morning at 14 cents.
“Hutch’s Find is a large scale gold opportunity located in one of the most sought-after gold regions in Australia,” Encounter managing director Will Robinson says.
“Extensive historical shallow geochemical drilling identified the large anomaly, but minimal deeper testing has been completed.”
“We are initially targeting the source of this large-scale system with traverses of deep RC drilling.”
Drilling results are expected in November.