Encounter Resources has received seven new exploration licences in the Tanami gold province in Western Australia as part of its joint venture (JV) agreement with Newcrest Mining.
Encounter’s new exploration tenements cover over 3500 square kilometres in the highly prospective region.
Encounter and Newcrest entered into five separate JVs in May this year, covering a total area of 4400 square kilometres at Tanami and West Arunta. The five JVs, named Selby, Watts, Lewis, Phillipson and Aileron, are split 50:50 between the two companies.
As a result of this development, the Selby and Watts areas are completely approved, while Lewis and Phillipson areas are mostly approved, with some areas still pending approval.
Newcrest has the right to increase its interest in each JV to 80 per cent should Encounter not elect to contribute on a 50:50 basis by sole funding exploration and delivering over 1 million ounces (oz) of gold.
The granted licences cover about 80 per cent of the 4400 square km total represented by the five JVs. The remaining 20 per cent (900 square km) is expected to be granted by the end of 2018.
“This is a region where exploration success can move the dial for a group the size of Newcrest and if that happens, it will clearly be company making for Encounter,” said Encounter managing director Will Robinson.
“Encounter is now advancing high quality opportunities in three of Australia’s most prospective gold regions: the Tanami, the Paterson Province and the Laverton Tectonic Zone.”