Niobium Deposit Expansion Raises Questions on Project Development Risks

Exploration Breakthrough at Green Deposit

Encounter Resources Limited (ASX – ENR) has announced a major advancement in its Aileron Project with drilling results confirming a 1.5-kilometre extension to the Green carbonatite complex. This discovery not only expands the footprint of the deposit but also reveals thick, high-grade niobium mineralisation, reinforcing the project's status as a significant source of critical minerals.

The recent drilling campaign has delivered impressive intersections, including intervals such as 26 metres at 2.5% niobium pentoxide (Nb2O5) and 18 metres at 2.7% Nb2O5, highlighting the quality and scale of the mineralisation. These results build on the existing inferred resource of 12.1 million tonnes at 1.63% Nb2O5 and 0.55% total rare earth oxides (TREO), underscoring the deposit's robust grade profile.

Strategic Drilling and Resource Definition

Encounter is currently operating two rigs at the Aileron site – an aircore rig focused on regional targets and extensions, and a diamond rig dedicated to collecting metallurgical samples. This dual approach enables both resource expansion and detailed technical studies, essential for advancing development scenarios.

Resource definition drilling at Green has been particularly fruitful, with infill drilling confirming the continuity and thickness of high-grade zones. The company anticipates that these thicker, richer zones could support high-grade starter pits, a positive indicator for future mining economics.

Looking East – Potential for Further Growth

Beyond the immediate Green deposit, aircore drilling has verified the eastern extension of the carbonatite complex over a 1.5km strike length. Assay results from this area are expected shortly and could lead to an updated mineral resource estimate, potentially adding further scale to the project.

Encounter’s Executive Chairman, Will Robinson, emphasised the momentum building at Aileron, noting that ongoing drilling and new geophysical data are rapidly refining the exploration model. The company is well-positioned to unlock the broader potential of this frontier critical minerals province.

Technical Rigor and Future Outlook

The drilling and sampling protocols adhere to industry best practices, with rigorous quality control measures ensuring data integrity. Metallurgical testwork is underway to optimise processing flowsheets, a critical step towards feasibility studies.

With a steady cadence of results expected every few weeks through 2025, Encounter Resources is steadily building a compelling case for the Aileron Project as a major new source of niobium and rare earth elements in Australia.