Encounter Resources leaps on the back of positive copper assays

Encounter Resources share price (ASX: ENR) was up 7.14% at noon today after the company announced high-grade copper (Cu) assays at the Sandover Copper Project in the Northern Territory. 

The company has confirmed high grade copper mineralisation of up to 20.9% Cu at four areas, totalling more than 6km of strike. 

“The confirmation of outcropping high grade copper over a large area is a promising start to exploration at Sandover,” says Managing Director Will Robinson.

“Access is excellent with the Stuart Highway and Ghan railway extending through the western margin of the project. Further areas of interest have been identified at Sandover and will be sampled at the start of the 2022 field season.”

The company has engaged experts in Zambian style copper deposits to fast track the project’s development. 

In addition to copper, Sandover contains known pegmatite occurrences with potential for lithium. These occurrences will be investigated in conjunction with the company’s copper exploration activities.

Consensus does not cover this stock.

Based on Morningstar's fair value of $0.21, this microcap (market cap $41.2m) appears undervalued.