Latest news with #EncounterResources
West Australian
6 days ago
- Business
- West Australian
ASX Big Hits: Encounter, Nimy Resources and Hyterra
Bulls N' Bears Big Hits examines some recent notable drilling intercepts revealed on the ASX, including Encounter Resources' high-grade niobium hit at its Joyce project in Western Australia's West Arunta region. Other interesting results were reported by Nimy Resources at its Mons gallium project, and Hyterra Limited landed a helium hit at its Nemaha gas field project in the US state of Kansas. Company: Encounter Resources (ASX: ENR) Project: Aileron project, West Arunta, WA Hit: 9m @ 2.2% niobium pentoxide from 120m to end-of-hole (EOH) Encounter Resources has reported high-grade niobium oxide mineralisation from an early air core drilling program at its Joyce prospect, part of the company's Aileron project in WA's West Arunta region. The first line of regional drilling in the 2025 season intersected 9 metres at 2.2 per cent niobium oxide from 120m to the end-of-hole in one hole, validating Encounter's targeting model for the carbonatite complex. At 6 kilometres east of the company's Green deposit, which totals 12.1 million tonnes averaging 1.63 per cent niobium oxide, Joyce highlights the broader potential of the mineralised system. In late 2024, two reconnaissance air core traverses spaced 1.6km apart at Joyce identified a carbonatite complex with strong niobium and rare earth anomalies. The company's 2025 air core drilling program kicked off with 800m-spaced drill lines. While the reported intercept hole terminated at 129m due to the limits of rig penetration, the hole intersected mineralisation in the upper saprolite zone, beneath transported sand and clay. Preliminary pXRF analysis flagged significant niobium, which was confirmed by expedited laboratory analysis. The company's systematic exploration includes 15 priority targets across its West Arunta tenure for 2025. The air core rig has completed the first pass program at Joyce, with assays expected in August, and was then remobilised to Encounter's Steller prospect, 15km north along the Elephant Island Fault. The Elephant Island Fault hosts the Crean deposit, which comprises 3.5Mt of ore averaging 1.92 per cent niobium pentoxide. Encounter's next steps at Joyce will involve mobilising a reverse circulation rig to test the depth and width of high-grade zones, alongside ground gravity and passive seismic surveys to map deeper weathering and metal enrichment, following a trial at the Green prospect. Encounter's 40,000m drill program underscores its focus on uncovering major niobium and copper deposits in Australia's prospective mineral belts. With niobium's critical role in advanced technologies and Joyce's high-grade results, Encounter is well-positioned to capitalise on growing global demand for critical minerals. If successful, the exploration could potentially establish Encounter's Aileron project as a significant contributor to the niobium supply chain. Company: Nimy Resources (ASX: NIM) Project: Mons Project, Block 3, gallium project Location: 370km north-east of Perth Hit: 240m at 55g/t gallium oxide from surface to EOH, including 56m at 101g/t gallium oxide from 60m Peak value: 1m at 285g/t gallium oxide from 115m Nimy Resources has reported exceptional gallium oxide results from its Mons project, 140km north-northwest of Southern Cross in WA. Gallium metal and its oxide comprise a critical yet lesser-known commodity, increasingly vital due to their roles in technology - particularly amid recent supply constraints. China controls 98 per cent of global refined gallium products but imposed export controls in August 2023, triggering price spikes and supply chain concerns. Nimy's phase two reverse circulation drilling program at its Block 3 prospect delivered remarkable gallium oxide grades across four 240m-deep holes. The stand-out hole averaged 55 grams per tonne (g/t) gallium oxide - equivalent to 41g/t gallium metal, using a 1.3442 conversion factor - from surface to end-of-hole. The mineralisation remains open. The hole included 56m at 101g/t gallium oxide from 60m, a peak 1m interval of 285g/t gallium oxide from 115m, and a 4m composite of 126g/t gallium oxide from 188m. The final 20m averaged 30g/t gallium oxide across five 4m composites. The second hole yielded two high-grade zones: 20m at 102g/t gallium oxide from 40m, peaking at 141g/t gallium oxide over 4m from 56m, and 36m at 104g/t gallium oxide from 112m, with a peak 1m interval of 376g/t gallium oxide from 117m. The third hole intersected 28m at 59g/t gallium oxide from 216m to end-of-hole. The fourth hole returned 8m at 108g/t gallium oxide from 144m, with a peak 1m interval of 184g/t gallium oxide from 145m, and 20m at 63g/t gallium oxide from 220m to end-of-hole. Average grades for the three other holes were 57g/t, 37g/t, and 30g/t gallium oxide over their 240m lengths. These results, with mineralisation open in all directions, highlight Block 3's potential to meet soaring global gallium demand. Nimy plans to deliver an initial mineral resource estimate in the December quarter, following assays from its phase three program. Ongoing exploration is targeting extensions of the gallium-hosting chlorite schist, with mineralisation identified beyond current limits, suggesting resource expansion potential. Despite gallium's relative abundance in the Earth's crust, widely estimated at 19 parts per million of the elemental metal, economically viable deposits are rare, making Nimy's high-grade, coherent mineralised system a promising contributor to the West's gallium supplies. Company: Hyterra Ltd (ASX: HYT) Project: Nemaha project, Kansas, the United States Hit: High helium concentrations up to 4.4% in mud gas samples at Blythe 13-20 well. Hyterra Limited reported an exceptional helium discovery at its Nemaha project in Kansas, with mud gas samples from its Blythe 13-20 well showing helium concentrations up to 4.4 per cent. This is a significant find, surpassing typical helium levels in the region and marking a rare occurrence for Kansas, where helium concentrations in the Hugoton gas field typically range from 0.25 per cent to 2.5 per cent. Helium, a colourless, odourless, non-toxic and inert noble gas, is the second most abundant element in the universe, but it is rare on Earth. Formed as a by-product of radioactive decay, it is a non-renewable resource typically extracted from natural gas deposits. Its unique properties, including an extremely low boiling point of -268.9°C, make it irreplaceable in semiconductors, aerospace, MRI technology and quantum computing. The global helium shortage underscores the value of this discovery. Kansas is a strategic hub for US helium production, supported by a robust regulatory environment and decades of expertise from the Hugoton field. The first significant helium discovery in Dexter, Kansas, in 1903 with a 1.84 per cent helium concentration. Dexter lies south of Blythe 13-20 near the Nemaha Ridge. Kansas currently hosts eight helium production plants, reinforcing its dominance in domestic supply. The Blythe 13-20 well will transition to an appraisal phase in the coming weeks, with downhole monitoring equipment installed to gather data for an initial testing program. This discovery strengthens Hyterra's position in meeting growing helium demand, particularly for healthcare, which amounts to 32 per cent of US consumption, mainly for MRI cooling. With no viable substitutes, helium's critical role in advanced industries highlights the significance of this high-grade find. Is your ASX-listed company doing something interesting? Contact:
Yahoo
28-05-2025
- Business
- Yahoo
IGO pulls out of WA copper mining JV with Encounter Resources
Encounter Resources has announced the full reacquisition of the Yeneena copper-cobalt project in Western Australia, following IGO's exit from their joint venture (JV) agreement. The Yeneena project, spanning more than 1,450km², is situated in the resource-rich Paterson Province and is known for its significant copper potential. Located near established mines, Yeneena is 60km south-west of the Telfer copper-gold mine and south of the Nifty copper mine. During the six-year partnership, IGO invested approximately A$15m in exploration activities including drilling and geological surveys. Encounter Resources will now utilise the extensive dataset to determine the next steps in exploring the project. Encounter Resources executive chairman Will Robinson said: 'The return of the Yeneena Copper Project comes at a time of strong demand for Tier 1 copper opportunities. With renewed control, we are evaluating the high-quality data generated under the farm-in, with plans to advance exploration at the high-grade BM1 copper zone and targets defined at BM5. 'While Yeneena presents compelling copper upside, our West Arunta Niobium Project remains a core strategic priority, reflecting the strength and balance of Encounter's project portfolio. We thank the IGO team for their collaborative and professional contribution over the past six years.' The company's immediate focus will be on the BM1 high-grade copper oxide discovery and the BM5 copper leakage anomaly. Encounter plans to reassess the BM1 copper oxide zone using updated geological models and explore the potential for resource definition of the high-grade oxide mineralisation. Furthermore, Encounter will conduct follow-up drilling at BM5 to investigate the source of the copper-silver-palladium anomalism identified in previous aircore programmes. The insights from the accumulated data will shape future drilling campaigns and the overall exploration strategy at Yeneena. "IGO pulls out of WA copper mining JV with Encounter Resources" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-03-2025
- Business
- Yahoo
Companies Like Encounter Resources (ASX:ENR) Are In A Position To Invest In Growth
We can readily understand why investors are attracted to unprofitable companies. For example, although made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed. So should Encounter Resources (ASX:ENR) shareholders be worried about its cash burn? For the purposes of this article, cash burn is the annual rate at which an unprofitable company spends cash to fund its growth; its negative free cash flow. The first step is to compare its cash burn with its cash reserves, to give us its 'cash runway'. See our latest analysis for Encounter Resources A company's cash runway is the amount of time it would take to burn through its cash reserves at its current cash burn rate. As at December 2024, Encounter Resources had cash of AU$23m and no debt. Looking at the last year, the company burnt through AU$11m. That means it had a cash runway of about 2.1 years as of December 2024. Arguably, that's a prudent and sensible length of runway to have. You can see how its cash balance has changed over time in the image below. While Encounter Resources did record statutory revenue of AU$92k over the last year, it didn't have any revenue from operations. That means we consider it a pre-revenue business, and we will focus our growth analysis on cash burn, for now. Over the last year its cash burn actually increased by 37%, which suggests that management are increasing investment in future growth, but not too quickly. That's not necessarily a bad thing, but investors should be mindful of the fact that will shorten the cash runway. Encounter Resources makes us a little nervous due to its lack of substantial operating revenue. We prefer most of the stocks on this list of stocks that analysts expect to grow. Given its cash burn trajectory, Encounter Resources shareholders may wish to consider how easily it could raise more cash, despite its solid cash runway. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. Many companies end up issuing new shares to fund future growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate). Since it has a market capitalisation of AU$112m, Encounter Resources' AU$11m in cash burn equates to about 9.5% of its market value. Given that is a rather small percentage, it would probably be really easy for the company to fund another year's growth by issuing some new shares to investors, or even by taking out a loan. Even though its increasing cash burn makes us a little nervous, we are compelled to mention that we thought Encounter Resources' cash runway was relatively promising. Based on the factors mentioned in this article, we think its cash burn situation warrants some attention from shareholders, but we don't think they should be worried. On another note, we conducted an in-depth investigation of the company, and identified 5 warning signs for Encounter Resources (3 are significant!) that you should be aware of before investing here. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies with significant insider holdings, and this list of stocks growth stocks (according to analyst forecasts) Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
