Pingandy Creek Project

(E08/1779) - 80% Encounter, 20% Avoca

The Pingandy Creek project is located 80km south of Paraburdoo and covers an area of 332km 2 along the northern margin of the Bangemall Basin.

Historical drilling in the area by Pasminco in the mid 1990s intersected extensive, shallow, low grade Zn-Cu-Pb mineralisation within a black shale unit named the Peebeezee Horizon. Encounter completed a 400m by 200m spaced ground survey gravity over a 15km segment of the prospective Peebeezee Horizon where only one hole has tested the horizon below a depth of 25m from surface. The survey area encompassed a number of historic mineralised holes and 3kms of the downdip extension of the target horizon (Figure 1).

The gravity survey identified a series of subtle density anomalies downplunge of historical low grade Zn-Cu-Pb drill intersections. Four of the five gravity anomalies were drill tested in the September 2008 by eleven RC drill holes. Assay results confirmed extensions to the area of low grade base metal mineralisation. From the results, it was interpreted that the gravity anomalies are accounted for by the density contrast between the host shale unit and the dolerite sills that have intruded the mineralised horizon.

Figure 1. Pingandy Creek - Residual Gravity and Historical Drilling

Figure 1. Pingandy Creek - Residual Gravity and Historical Drilling