Neighbour Encounter Resources firms up 2023 drill targets
2023 is shaping up to be a big year for the West Arunta province in WA.
We recently Initiated Coverage on Lycaon Resources (ASX: LYN) which holds ground ~94km north of WA1 Resources which recently re-rated by ~2,300%+ after making a niobium and rare earths discovery.
LYN’s ground also sits north of Encounter Resources, which just yesterday announced that it has gravity anomalies similar to WA1.
Encounter announced a ~600m diameter gravity anomaly, which is similar to WA1 Resources’ whose grounds are prospective for IOCG style copper and carbonatite-hosted REE mineralisation.
Similarly LYN has an almost identical anomaly measuring ~700m long and is also preparing to drill its project in 2023.
At the moment the three companies have vastly different market caps:
- WA1 Resources = capped at $99M
- Encounter Resources = capped at $64M.
- Lycaon Resources (ASX: LYN) = capped at $13M (including acquisition shares)
We are Invested in LYN to see it drill its project and hopefully make a discovery similar to WA1 Resources leading to a similar 1,000%+ re-rate in the company’s share price.
LYN will be following an almost identical exploration process to its larger capped neighbours:
- 🔃 Geochemical sampling/mapping as well as refining of geophysical survey data. Lycaon Resources (ASX: LYN) is here.
- 🔃 Plan and design its drilling program so as to improve the probability of success. (Encounter Resources is here).
- 🔲 Drill the target. (WA1 Resources already completed this and made a discovery)
