Uncertain Continuity Clouds New Copper Zone at Encounter’s Elsa Prospect

New Copper Zone Emerges at Elsa Prospect

Encounter Resources Limited (ASX:ENR) has kicked off its 2026 drilling campaign at the Elsa prospect within the Lamil Copper-Gold Project by uncovering a previously unrecognised copper zone. The standout intercept came from drill hole ETG262, which returned 16 metres at 0.30% copper from 58 metres downhole. This hole lies at the easternmost edge of the current drilling footprint, suggesting the potential for a new copper-gold zone beyond the initial target area.

The discovery is particularly notable given the geological parallels between Elsa’s breccia system and the nearby Havieron deposit, a significant gold-copper resource located about 80 kilometres to the east. Encounter’s Executive Chairman Will Robinson highlighted the encouraging start, noting the mineralisation extends beyond previous boundaries and opens up fresh ground for exploration.

Expanded Drilling Program to Delineate Breccia System

Following these initial results, Encounter has increased its reverse circulation (RC) drilling program at Elsa from the originally planned 6,000 metres to 9,000 metres. To date, 36 holes have been completed, with three of five planned drill lines finished. The expanded program aims to better understand the size and extent of the breccia pipe, which is interpreted as a major structural fluid conduit and potential feeder for mineralisation.

The company plans to follow up the RC drilling with diamond drilling to test the depth extent of the breccia system, focusing on areas where the strongest geochemical anomalies have been identified. This step is crucial to confirm the vertical continuity and true width of the mineralisation, which remain uncertain at this early stage.

Encounter's approach at Lamil aligns with its broader strategy of targeting Havieron-style mineral systems within the Paterson Province, a region that also hosts deposits such as Rio Tinto’s Winu and Antipa Minerals’ Minyari Dome. The Lamil Project lies just 25 kilometres northwest of the major Telfer mine, underscoring the district-scale potential of Encounter’s tenure.

Ongoing Assays and Upcoming Regional Drilling

Further assay results from the ongoing RC program at Elsa are expected within the next four to six weeks, which will inform the subsequent diamond drilling campaign planned for the third quarter of 2026. Meanwhile, Encounter is set to commence RC and diamond drilling at the Parbo and Haddon copper prospects within its Yeneena Project in June, continuing its aggressive exploration push across the Paterson Province.

These developments come amid Encounter’s recent success at its Aileron Project, where the company has reported substantial growth in its niobium resource and robust metallurgical recoveries, underpinning its critical minerals portfolio. The current copper-gold drilling at Lamil complements this by targeting high-impact discoveries in a Tier 1 jurisdiction, supported by technical expertise and strategic partnerships.

With the Lamil drilling program now ramping up, investors will be watching closely for further assay results that could validate the scale and grade of the new copper zone and potentially add a significant new chapter to Encounter’s exploration story in the Paterson Province.