Encounter Resources Unveils Record Rare Earth Grades at Crean Prospect

Exceptional Grades Highlight Crean's Potential

Encounter Resources Limited (ASX, ENR) has delivered a compelling update from its Aileron project in Western Australia's West Arunta region, reporting high-grade rare earth element (REE) and niobium assay results from diamond drilling at the Crean prospect. The standout intercept includes 7.3 metres grading 6.3% total rare earth oxides (TREO) and 8.1% niobium pentoxide (Nb2O5), underscoring the area's growing reputation as one of Australia's most prospective REE provinces.

The drilling results not only confirm the presence of significant niobium mineralisation but also reveal a notable enrichment in heavy rare earth elements, specifically Dysprosium and Terbium. These elements are critical for emerging technologies in defense, electric vehicles, and renewable energy sectors, adding strategic value to the discovery.

Geological Context and Comparative Advantage

Crean's mineralisation occurs within large carbonatite intrusions along the Elephant Island Fault, a structural corridor that appears to favour REE enrichment. The prospect's TREO grades are approximately double those found at nearby Green and Emily prospects, suggesting unique geological factors at play. Encounter's Executive Chairman, Will Robinson, highlighted the parallels between Aileron's carbonatites and globally significant deposits such as Mt Weld and Araxá, which similarly host both niobium and rare earth elements side-by-side.

This dual mineralisation style positions the Aileron project as a rare and valuable asset, with the potential for a large-scale, high-grade REE and niobium discovery. The company's systematic exploration approach is designed to capture this upside without deviating from its core focus on niobium.

Active Exploration and Near-Term Catalysts

Currently, Encounter operates two rigs, a diamond drill and an aircore rig, actively advancing the drilling program at Aileron. Assay results from reverse circulation drilling are anticipated in early September 2025, promising a steady flow of news for investors. Additionally, metallurgical testwork using composites from the recent diamond drill hole EAL474a is scheduled for the fourth quarter of 2025, which will provide critical insights into the processing and recovery of these rare earths and niobium.

The established inferred mineral resource at Aileron already stands at 19.2 million tonnes grading 1.74% Nb2O5 and 0.65% TREO, including a higher-grade zone at Crean. These new results could significantly enhance the project's resource profile and economic potential.

Strategic Implications for Critical Minerals Supply

As global demand for critical minerals intensifies, discoveries like Crean's high-grade REE and niobium mineralisation are increasingly important. Encounter Resources is well-positioned within a Tier 1 jurisdiction, leveraging strong technical expertise to advance a project that could contribute meaningfully to Australia's critical minerals supply chain. The heavy rare earth element advantage, particularly the elevated Dysprosium and Terbium, aligns the project with strategic priorities in defense and clean energy technologies.

While the true width of mineralisation remains to be determined and metallurgical results are pending, the current data paints a promising picture. Encounter's ongoing exploration and forthcoming assay results will be closely watched by the market and industry observers alike.