Newcrest targets Tier 1 gold deposits with Encounter

Image: Encounter Resources

Newcrest Mining and Encounter Resources have gained ground in their series of joint ventures (JV) in Western Australia.

The JV partners have completed heritage surveys at the Aileron JV in the West Arunta district, as well as at the Watts, Selby and Lewis JVs, which cover more than 100 kilometres of strike in the Tanami region.

Newcrest and Encounter will commence on ground exploration activities at the Tanami region next month, followed by Aileron in September.

Newcrest will also withdraw from the Phillipson Range JV project where gold anomaly has been validated in the southern Tanami for undisclosed reasons.

The company will, however, continue to fund exploration activities, including the first phase of RC and diamond drilling during August to November in the rest of the JVs, targeting “Tier 1 scale” gold and copper-gold mineral deposits.

“In the coming months we will drill test a number of large scale, high quality prospects in this highly fertile region,” Encounter managing director Will Robinson said.

“Working with Newcrest lets us raise our eyes and go after giant scale deposits fully funded by a major gold producer.”

The Aileron JV, which is dubbed an “undercover project” in West Arunta reportedly contains a number of structural targets, including a discrete magnetic anomaly consistent with the scale of an Ernest Henry (Evolution Mining) or Carrapateena (OZ Minerals) style system.

The Lewis JV in Tanami also contains vast areas that have never seen a soil sample or drill hole, presenting “first mover opportunity” on a major regional structure.

Newcrest and Encounter formed the JVs in July 2017, covering 4400 square kilometres in the first year before completing a project generation exercise that added another 1500 square kilometres to the JVs in March this year.

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