Elephant Island Fault Discovery Raises Stakes for Encounter Resources

Expanding the Elephant Island Fault Potential

Encounter Resources Limited (ASX – ENR) has announced a significant breakthrough in its exploration campaign with the discovery of a new high-grade niobium and rare earth element (REE) mineralisation zone approximately 500 metres east of the established Crean Mineral Resource Estimate (MRE). This discovery was made through recent aircore drilling along the Elephant Island Fault, a major structural corridor in the West Arunta region of Western Australia.

The Elephant Island Fault is emerging as a prolific mineralised corridor, hosting the Crean, Hurley, and Hoschke carbonatite deposits. Encounter’s latest drilling results from hole EAL1327 reveal impressive intercepts including 24 metres at 3.0% Nb2O5 (niobium pentoxide) and 1.7% total rare earth oxides (TREO) from 106 metres depth, alongside other substantial intervals. These grades are considered high for niobium and REE deposits and suggest the fault zone’s mineralisation extends well beyond previously defined boundaries.

Context and Significance of the Discovery

Crean’s current MRE is 3.5 million tonnes at 1.92% Nb2O5 and 1.05% TREO, already marking it as a significant asset in Encounter’s portfolio. The new zone, located over 500 metres east, indicates the potential for resource growth along the fault, which spans more than 8 kilometres and remains only broadly drilled. The discovery aligns with Encounter’s strategy of targeting large-scale carbonatite systems known for hosting critical minerals like niobium and rare earths, essential for emerging technologies and green energy applications.

Executive Chairman Will Robinson emphasised the importance of structural corridors like the Elephant Island Fault as conduits for mineralised carbonatites. He noted that the broad mineralised intersections along this fault are revealing the scale and potential of the system, with expectations that further high-grade zones will be identified as exploration progresses. The proximity of the Hurley carbonatite, just 3 kilometres from the new discovery, which has yielded some of the thickest and highest-grade niobium intersections in fresh carbonatite, adds further weight to the region’s prospectivity.

Ongoing Exploration and Future Outlook

Encounter’s exploration program continues with additional aircore drilling along the Elephant Island Fault, with assay results anticipated every 2 to 4 weeks. These results will guide follow-up infill and extensional drilling to better define the mineralised zones and potentially upgrade the resource classification. The company’s methodical approach, including high-quality sampling and assaying protocols, ensures confidence in the reported grades and intersections.

The broader Aileron Project, encompassing Crean, Hurley, Green, and Emily deposits, is rapidly gaining attention as a frontier for critical mineral exploration in Australia. Encounter’s focus on niobium and REE deposits positions it well amid growing global demand for these elements, which are vital for electronics, renewable energy technologies, and advanced manufacturing.

While true widths of the mineralisation are yet to be determined due to limited drilling orientation data, the current findings underscore the potential scale of the carbonatite system. As Encounter continues to unlock the Elephant Island Fault’s mineral wealth, the market will be watching closely for resource upgrades and further discoveries that could enhance the company’s strategic position in the critical minerals sector.