The directors of Encounter Resources Ltd. announced that gravity inversion modelling has identified an interpreted pipe-like intrusion or alteration system at Caird, part of the Aileron Cu-REE project (100% ENR) in the West Arunta region of WA. Aileron is located in the West Arunta region of WA ~600km west of Alice Springs. The project contains several structural and geophysical targets identified through aerial magnetic and gravity surveys.

To date, only one diamond hole, EAL001, has been drilled within the project which targeted a discrete magnetic anomaly (Worsley). EAL001 was partially completed to a depth of 158m in October 2020 and drilled through 5m of shallow cover followed by a brecciated hydrothermal hematite-chlorite-altered granite with a narrow mafic intrusion. Within these units, zones of increased brecciation and alteration correlate with increased REE anomalism with a distinctive IOCG geochemical signature.

The hole ended prior to designed depth due to a mechanical failure. Assays from EAL001 include zones of anomalism in copper (up to 0.1% Cu), gold (up to 48ppb Au), molybdenum (up to 155ppm Mo), niobium (up to 773ppm Nb) and highly elevated rare earth elements (up to 0.8% TREO) consistent with the IOCG deposit model. The presence of highly anomalous REE at Aileron and the mineralised carbonatite discoveries by WA1 Resources, provide encouragement that an alkaline magmatic hydrothermal system has been active in the region.

Such systems are known to play an important role in the formation of both IOCG and carbonatite-hosted REE deposits. Gravity Survey: In November 2021, a helicopter-supported ground gravity survey was completed at Aileron which confirmed and elevated the presence of multiple priority anomalies. Caird is a discrete and coincident "bullseye" gravity and magnetic anomaly.

Inversion modelling has defined a 600m diameter (~2 mgal) discrete, gravity anomaly at Caird. This anomaly is sub-vertical and can be clearly recognized in the 300m and 500m depth slices. The anomaly is interpreted as a pipe-like discrete intrusion or alteration system.

Caird is located immediately adjacent to the major Endurance fault system that hosts the recent Luni mineralised carbonatite discovery by WA1 Resources 5km to the south-east. Caird is mapped by GSWA as an area of residual regolith. However, the causative body for the geophysical anomaly is not exposed at surface.

During a reconnaissance field visit, quartz veining and ferruginous duricrust were identified at surface close to the south-west margin of the anomaly. Accordingly, a systematic surface geochemistry survey will be undertaken during 2023. Drill Ready: Preparations for drilling Caird and Worsley are well advanced with a heritage survey completed in May 2022 and access tracks established.

Compilation and interpretation of the geophysical data is ongoing with results from an 8,000 line km magnetic/radiometric survey expected in early December 2022. Additional gravity surveys and surface geochemistry are planned for the start of the 2023 field season. Drilling of Caird, Worsley and other targets will commence in April-June 2023.