Lakeview Project

(E29/577) - 80% Encounter, 20% Avoca

A detailed gravity survey was completed over a discrete magnetic anomaly in the east of the Lakeview project. The survey successfully defined a circular gravity low over the magnetic body that is likely to be associated with the increased weathering of the magnetic body.

The coincident geophysical anomaly is located within dunes on the margin of Lake Raeside in a region where De Beers and others have identified a number of kimberlitic bodies and diamond indicator minerals. Modelling of the geophysical data has generated two sub vertical pipe-like bodies within the granitic terrain that are interpreted to be Kimberlitic intrusions.

Although diamonds are not the core focus of Encounter, this target is considered to be a high quality opportunity. A drilling program will test the southern of the two anomalies to determine the lithology and prospectivity of the defined geophysical targets.