Encounter Resources (ASX: ENR) has unveiled a significant expansion of high-grade niobium mineralisation to over 4km strike at its Green prospect, complemented by ongoing REE intersections and advancing metallurgical test work.
This update sets the stage for a Q2 2026 updated Mineral Resource Estimate (MRE) and April 2026 infill drilling to support potential starter-pit development.
Recent diamond drilling delivered impressive intercepts, including 42m at 2.2% Nb2O5 from 35m, which featured a higher-grade zone of 6m at 5.1% Nb2O5 from 40m in drill hole EAL1373.
Another notable result was 33.6m at 2.1% Nb2O5 from 43m, with 5.1m at 3.9% Nb2O5 from 61.9m in EAL1414.
Extended High-Grade Strike
Aircore drilling further east of the existing MRE has played a key role in extending the strike length of the high-grade mineralisation.
Step-out drilling has now pushed the Green prospect's high-grade zone to over 4km of strike.
Significant aircore intersections include 5m at 2.3% Nb2O5 from 71m and 7m at 1.3% Nb2O5 from 83m.
The Green prospect forms a critical part of the company's Aileron project, contributing 12.1 Mt Nb2O5 to the existing MRE.
Ongoing REE Discoveries
Beyond the prominent niobium findings, Encounter Resources continues to uncover significant Rare Earth Element (REE) potential at the Green prospect.
Recent aircore drilling results highlight combined niobium and REE intercepts, such as 18m at 1.3% Nb2O5 and 1.0% TREO from 58m.
Further dedicated REE intersections were also reported, including 10m at 1.4% TREO from 50m and 5m at 1.6% TREO from 52m.
These results underscore the multi-commodity nature of the Green prospect.
Development Milestones Approaching
Encounter Resources is now progressing towards key development milestones for its Aileron project.
The updated MRE will incorporate the latest drilling data from the extended high-grade zones at Green.
In preparation for potential starter-pit development, infill drilling is scheduled to commence in April 2026.
Concurrently, metallurgical test work remains ongoing, aiming to advance the processing pathways for the project's niobium and REE mineralisation.
Context From Previous Coverage
Encounter Resources has consistently delivered positive exploration news from its Aileron project, particularly regarding niobium and REEs, since mid-2024.
Previous drilling campaigns, such as those announced in June 2024 and July 2024, outlined promising niobium intercepts at the Crean and Emily targets.
Further high-grade niobium results at the Green prospect were also reported in November 2024.
Earlier coverage in October 2025 highlighted the intersection of REE fluorocarbonate minerals at Green and Juan prospects, indicating district-scale potential in the West Arunta region.
An announcement that same month also noted high-grade niobium mineralisation over a 1km strike at Green.
The company's 2025 Annual Report confirmed a maiden MRE for Aileron of 19.2 Mt at 1.74% Nb2O5.
Outlook and Risks
Encounter Resources is demonstrating significant progress in expanding its high-grade niobium zone and identifying REE potential at Green.
The upcoming MRE update and infill drilling are key catalysts, though execution risk remains as the company works towards potential development.
Investors will watch for successful conversion of exploration results to economic reserves and commodity price dynamics.
Commodity price fluctuations for niobium and rare earth elements could impact future project economics and the overall value realisation from these discoveries.
The timing of development milestones and outcomes of metallurgical test work are also crucial.
