2 July 2006Company Announcements OfficeAustralian Stock Exchange...

2 July 2006
Company Announcements Office
Australian Stock Exchange Limited
4th Floor
20 Bridge Street
SYDNEY NSW 2000
Dear Sir/Madam
Please find attached an ASX Release in respect of the discovery of a new zone of uranium
mineralisation identified within the Yeelirrie Channel Project.
Yours faithfully
ENCOUNTER RESOURCES LIMITED
Kevin Hart
Company Secretary
ENCOUNTER RESOURCES
Date: 3 July 2006
ASX : ENR
ENCOUNTER IDENTIFIES NEW ZONE OF URANIUM
MINERALISATION
Highlights
• Encounters’ maiden drill program has identified a new, near surface zone of
uranium mineralisation within the Yeelirrie Channel Project (80% Encounter,
20% Avoca).
• Significant intersects:
- 8m @ 123ppm U3O8 from surface, including 3m @ 204ppm U3O8
from surface
- 7m @ 100ppm U3O8 from 1m, including 2m @ 165ppm U3O8 from
5m
• Follow up drill program to commence in early July.
Encounter Resources Ltd (ASX:ENR) is pleased to announce the discovery of a
new zone of near surface uranium mineralisation at the company’s Bellah Bore
East Prospect, part of the Yeelirrie Channel Project located 50km south west of
Wiluna in Western Australia (figure 1).
This is Encounter’s maiden drill program since listing on the ASX in March 2006.
The drilling at Bellah Bore East was designed to evaluate a discrete, high
amplitude airborne radiometric anomaly. A field examination in the area of the
airborne anomaly identified visible uranium mineralisation within an outcrop of
silicified calcrete.
In early June, five reconnaissance aircore holes (EYN001-5) were drilled at Bellah
Bore East to determine the nature and depth extent of the outcropping uranium
mineralisation. Drill holes EYN001 and EYN005 intersected a highly anomalous,
near surface zone of uraniferous silicified calcrete that remains open along strike
and to the west.
“We are encouraged by these initial results and by the identification of a new zone
of mineralisation in this highly endowed district. Bellah Bore East is located at the
northern end of the Yeelirrie drainage system, 40 km upstream from BHP Billiton’s
world class Yeelirrie uranium deposit.” Encounter Managing Director Will Robinson
said.
ENCOUNTER RESOURCES
Date: 3 July 2006
As a result of this initial drilling program Encounter has scheduled a follow up
aircore drilling program which will commence in early July at Bellah Bore East. This
program will target the area immediately to the north, south and west of the
uranium mineralisation identified in EYN 001 and EYN 005
Encounter also has applied for a new Exploration Licence to cover the interpreted
north east strike continuation of the Bellah Bore East mineralisation.
ENDS
For further information:
Mr Will Robinson Mr David Griffiths
Managing Director Gryphon Management Australia
Encounter Resources Ltd Tel: 08 9382 8300
Tel: 08 9486 9455 Mob: 0419 912 496
Mob: 0408 939 958
ENCOUNTER RESOURCES
Date: 3 July 2006
Table 1 Drill hole collar locations and Assay Results
Hole # Northing Easting Dip Azi From
(m)
To
(m)
Width
(m)
U3O8
(ppm)
V
(ppm)
EYN 1 7,025,450 779,400 -90 360 1 8 7 100 17
incl. 5 7 2 165 12
EYN 5 7,025,140 779,220 -90 360 0 8 8 123 49
incl. 0 3 3 204 66
Figure 1 Drill hole and tenement location plan - Bellah Bore East Prospect
(Yeelirrie Channel Project)
The information in this report that relates to Exploration Results is based on information compiled by Mr. Peter Bewick who
is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Bewick is a full time employee of Encounter
Resources Ltd and has sufficient experience which is relevant to the style of mineralisation under consideration to qualify as
a Competent Person as defined in the 2004 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Mr. Bewick consents to the inclusion in the report of the matters based on his information in
the form and context in which it appears.
ENCOUNTER RESOURCES
Date: 3 July 2006
Encounter Resources Background
Encounter was established in 2004 to assemble a portfolio of strategically located,
high quality, uranium projects in Western Australia. Project targeting involved a
deliberate, scientifically based program at a time when there was minimal
competition in Western Australia.
As a result of this extensive preliminary planning, in conjunction with joint venture
partners Avoca Resources Ltd, Encounter now controls the strike continuation of
two calcrete uranium deposits in Western Australia, BHP Billiton’s Yeelirrie deposit,
which is the world’s largest; and Nova Energy’s Lake Way and Centipede deposits.
In addition to these two major projects, Encounter has tenement holdings in the
Yilgarn, the Bangemall Basin prospective for both calcrete and Jabiluka style
uranium deposits; and the Officer Basin with three large scale playa lake uranium
targets containing significant radiometric anomalies.