News: Encounter Resources hits copper sulphides at Fishhook

Encounter Resources (ASX:ENR) diamond drilling at the Fishhook project in Western Australia has intersected copper sulphides.

The program intersected broad zones of alteration consistent with the sediment hosted copper model.

Drilling also intersected occasional blebby and narrow zones of disseminated copper sulphide mineralization and zones of low grade copper anomalism.

Fishhook covers over 100 square kilometres and lies 20 kilometres north of the BM1-BM7 copper discoveries in the Yeneena project.

The objective of the program was to obtain the first stratigraphic information in the Fishhook area and to determine if similar mineralisation indicators occur in this area as at BM1-BM7.

Results have positive implications for Fishhook and open up the potential for further sediment hosted copper occurrences along the northern corridor.

In addition, Encounter and Hammer Metals (ASX:HMX) have reached agreement for Encounter to acquire 100% interest in two exploration licences adjoining Fishhook.

Consideration is the issue of 750,000 shares to Hammer with a period of voluntary escrow of 18 months. If the market value of Encounter shares $0.50 then the voluntary escrow may be terminated.

Encounter can now continue the recent successful work along the northern corridor or this area.

The company is also involved in a joint venture with Antofagasta (LON:ANTO) at the Yeneena copper and zinc projects in Western Australia.

Antofagasta is one of the world's largest copper miners, with a market capitalisation of over $7 billion.