Pingandy Creek Project
(E08/1779 - 80% Encounter, 20% Avoca, E08/1794 100% Encounter and E08/1578 Encounter Option to earn 100%)
The Pingandy Creek Project is located 80km south of Paraburdoo and covers an area of 425km 2 along the northern margin of the Bangemall Basin. The Pingandy Creek Project encompasses a regional base metals and uranium geochemical anomaly. A series of shallow drill holes were completed by Pasminco in the 1990s that extend over 30km of strike. The drilling intersected a sphalerite and chalcopyrite mineralised sequence at the base of the Jillawarra Formation and returned up to 3m @ 1.25% Zn (including 1m @ 2.88% Zn).
The targeted horizon hosts a 9km long uranium channel radiometric anomaly and coincident GSWA regional, multi-element (U-As-Mo-Sb) stream sediment anomaly within the Pingandy Project. Downhole gamma logs of two of the percussion holes drilled by Pasminco indicate highly anomalous radiometric responses of over ten times background associated with significant Zn, Cu, AS, Mo an Ni anomalism. Base metal anomalism is found within the alteration halo of a number of unconformity uranium deposits and the coincident radiometric anomalism at Pingandy Creek is considered to be highly encouraging. No uranium analysis was completed on the historic RC drill holes.
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. Historical intersections from this unit include: 3m @ 1.25% Zn from 19m; 3m @ 0.67% Zn from 21m; 6m @ 0.54% Zn from 23m.
In May 2008 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 downplunge extension of the target horizon.
The survey defined five excess mass anomalies downplunge and along strike from the Pasminco drilling (see Figure 5). Four of the five (G1-G4) gravity anomalies have been selected for follow up drill testing. These targets selected were defined as coherent, multi-point anomalies that are located in close proximity to interpreted cross cutting structures. It is inferred that these interpreted structures are the conduits for the mineralising base metal rich fluids.
A heritage survey was completed during June and has cleared access tracks to the proposed drill site at targets G1 to G4. Drilling is scheduled to commence in August 2008.
See Pingandy Creek (Unconformity Uranium)
Figure 5. Pingandy Creek - Residual Gravity and Historical Drilling
