Encounter Resources Boosts Aileron Niobium Resource by 54% Amid Broad Copper-Gold Gains

Aileron Niobium Resource Surges 54%

Encounter Resources Limited (ASX:ENR) has reported a substantial 54% increase in its combined Inferred Mineral Resource Estimate (MRE) at the Aileron Niobium-Rare Earth Elements project in Western Australia’s West Arunta region. The updated resource now stands at 120 million tonnes grading 0.77% Nb2O5 at a 0.25% cut-off, including a higher-grade portion of 26 million tonnes at 1.7% Nb2O5 above a 1.0% cut-off.

This boost largely stems from the 2025 drilling program results incorporated into the latest JORC-compliant estimate, with the Green deposit alone showing a 48% increase in contained niobium pentoxide in its high-grade segment. The Green deposit is central to Encounter’s pre-development focus.

Metallurgical Tests Align with Industry Standards

Metallurgical test work on representative samples from the Green South West area demonstrated beneficiation recoveries of 51-53% niobium to concentrate, with concentrate grades ranging from 40% to 43% Nb2O5. Refining tests further boosted concentrate grades up to 57% Nb2O5, achieving high niobium recoveries of 98-99.9% and successfully reducing phosphorus impurities to target levels.

These results closely mirror processes and outcomes at existing niobium operations globally, suggesting Encounter’s beneficiation and refining approach is robust across varying ore compositions. The company plans to expand test work to produce final niobium products such as ferroniobium and niobium oxide and to optimise recovery and concentrate quality.

Field Programs and Mining Lease Progress

A large-scale field campaign is underway, including infill and extensional drilling at the Green and Emily deposits, aircore drilling targeting new regional prospects, and environmental surveys supporting a mining lease application lodged for the project footprint. A multi-purpose diamond/mud-rotary rig is scheduled to commence geotechnical, hydrogeological, and metallurgical sampling drilling in August 2026.

Strategic Battery Technology Partnership

Encounter has entered a Memorandum of Understanding (MOU) with UK-based Echion Technologies and Perth’s Switch Technologies to develop an integrated lithium-niobium battery industry in Australia. Echion’s XNO® niobium anode technology offers high power and energy density, ultra-fast charging, and long cycle life, targeting heavy-duty mobility and energy storage system (ESS) applications such as AI data centres.

Switch is developing a mine-ready hybrid system for Caterpillar haul trucks incorporating Echion’s battery technology, aiming to reduce diesel consumption by 17-20% and increase cycle times by 10-15%, with a payback period of around three years. This collaboration could position Encounter’s Aileron niobium as a strategic supply source amid a concentrated global market.

Copper-Gold Exploration Gains in Paterson and Northern Territory

In the Paterson Province, Encounter’s Lamil Copper-Gold Project has identified a priority copper-gold zone at the Elsa prospect, with recent RC drilling intersecting 18m at 0.45% copper and 6m at 1.74g/t gold. These results confirm the presence of mineralised breccia systems analogous to the nearby Havieron deposit. Follow-up drilling is planned to test the depth and extent of mineralisation post-heritage surveys, refining a 1.2km target zone defined at Elsa prospect.

At the Yeneena Copper Project, a 3,500m drilling campaign is underway targeting the extensive +8km Parbo copper system, aiming to extend known high-grade copper zones. Assay results are anticipated in August 2026, complementing ongoing work across multiple prospects in the region including dual drilling at Yeneena.

Further north, the Jessica Copper Project in the Northern Territory, farmed-in by South32, is advancing with planned RC and diamond drilling to test targets identified by recent geophysical surveys, including the Zeta IOCG target. The 2026 program includes 4,000m of RC and 2,000m of diamond drilling, supported by regional magnetotelluric surveys.

Financial Position and Outlook

Encounter ended the quarter with approximately A$27 million in cash and continues to invest heavily in exploration and development activities across its portfolio. The company incurred around A$5 million in exploration expenditure during the quarter, primarily focused on the Aileron critical minerals project and copper-gold programs in WA and the NT.

With mining lease applications progressing and a robust drilling pipeline, the next quarters will be pivotal in delivering assay results, refining metallurgical processes, and advancing strategic partnerships, particularly in the emerging lithium-niobium battery sector.