ASX Big Hits: Encounter, Nimy Resources and Hyterra

Bulls N’ Bears Big Hits examines some recent notable drilling intercepts revealed on the ASX, including Encounter Resources’ high-grade niobium hit at its Joyce project in Western Australia’s West Arunta region. Other interesting results were reported by Nimy Resources at its Mons gallium project, and Hyterra Limited landed a helium hit at its Nemaha gas field project in the US state of Kansas.

Company: Encounter Resources (ASX: ENR)

Project: Aileron project, West Arunta, WA

Hit: 9m @ 2.2% niobium pentoxide from 120m to end-of-hole (EOH)

Encounter Resources has reported high-grade niobium oxide mineralisation from an early air core drilling program at its Joyce prospect, part of the company’s Aileron project in WA’s West Arunta region.

The first line of regional drilling in the 2025 season intersected 9 metres at 2.2 per cent niobium oxide from 120m to the end-of-hole in one hole, validating Encounter’s targeting model for the carbonatite complex.

At 6 kilometres east of the company’s Green deposit, which totals 12.1 million tonnes averaging 1.63 per cent niobium oxide, Joyce highlights the broader potential of the mineralised system.

In late 2024, two reconnaissance air core traverses spaced 1.6km apart at Joyce identified a carbonatite complex with strong niobium and rare earth anomalies.

The company’s 2025 air core drilling program kicked off with 800m-spaced drill lines. While the reported intercept hole terminated at 129m due to the limits of rig penetration, the hole intersected mineralisation in the upper saprolite zone, beneath transported sand and clay.

Preliminary pXRF analysis flagged significant niobium, which was confirmed by expedited laboratory analysis. The company’s systematic exploration includes 15 priority targets across its West Arunta tenure for 2025.

The air core rig has completed the first pass program at Joyce, with assays expected in August, and was then remobilised to Encounter’s Steller prospect, 15km north along the Elephant Island Fault. The Elephant Island Fault hosts the Crean deposit, which comprises 3.5Mt of ore averaging 1.92 per cent niobium pentoxide.

Encounter’s next steps at Joyce will involve mobilising a reverse circulation rig to test the depth and width of high-grade zones, alongside ground gravity and passive seismic surveys to map deeper weathering and metal enrichment, following a trial at the Green prospect.

Encounter’s 40,000m drill program underscores its focus on uncovering major niobium and copper deposits in Australia’s prospective mineral belts.

With niobium’s critical role in advanced technologies and Joyce’s high-grade results, Encounter is well-positioned to capitalise on growing global demand for critical minerals.

If successful, the exploration could potentially establish Encounter’s Aileron project as a significant contributor to the niobium supply chain.

Company: Nimy Resources (ASX: NIM)

Project: Mons Project, Block 3, gallium project

Location: 370km north-east of Perth

Hit: 240m at 55g/t gallium oxide from surface to EOH, including 56m at 101g/t gallium oxide from 60m

Peak value: 1m at 285g/t gallium oxide from 115m

Nimy Resources has reported exceptional gallium oxide results from its Mons project, 140km north-northwest of Southern Cross in WA.

Gallium metal and its oxide comprise a critical yet lesser-known commodity, increasingly vital due to their roles in technology - particularly amid recent supply constraints. China controls 98 per cent of global refined gallium products but imposed export controls in August 2023, triggering price spikes and supply chain concerns.

Nimy’s phase two reverse circulation drilling program at its Block 3 prospect delivered remarkable gallium oxide grades across four 240m-deep holes.

The stand-out hole averaged 55 grams per tonne (g/t) gallium oxide - equivalent to 41g/t gallium metal, using a 1.3442 conversion factor - from surface to end-of-hole. The mineralisation remains open.

The hole included 56m at 101g/t gallium oxide from 60m, a peak 1m interval of 285g/t gallium oxide from 115m, and a 4m composite of 126g/t gallium oxide from 188m. The final 20m averaged 30g/t gallium oxide across five 4m composites.

The second hole yielded two high-grade zones: 20m at 102g/t gallium oxide from 40m, peaking at 141g/t gallium oxide over 4m from 56m, and 36m at 104g/t gallium oxide from 112m, with a peak 1m interval of 376g/t gallium oxide from 117m.

The third hole intersected 28m at 59g/t gallium oxide from 216m to end-of-hole.

The fourth hole returned 8m at 108g/t gallium oxide from 144m, with a peak 1m interval of 184g/t gallium oxide from 145m, and 20m at 63g/t gallium oxide from 220m to end-of-hole.

Average grades for the three other holes were 57g/t, 37g/t, and 30g/t gallium oxide over their 240m lengths.

These results, with mineralisation open in all directions, highlight Block 3’s potential to meet soaring global gallium demand.

Nimy plans to deliver an initial mineral resource estimate in the December quarter, following assays from its phase three program.

Ongoing exploration is targeting extensions of the gallium-hosting chlorite schist, with mineralisation identified beyond current limits, suggesting resource expansion potential.

Despite gallium’s relative abundance in the Earth’s crust, widely estimated at 19 parts per million of the elemental metal, economically viable deposits are rare, making Nimy’s high-grade, coherent mineralised system a promising contributor to the West’s gallium supplies.

Company: Hyterra Ltd (ASX: HYT)

Project: Nemaha project, Kansas, the United States

Hit: High helium concentrations up to 4.4% in mud gas samples at Blythe 13-20 well.

Hyterra Limited reported an exceptional helium discovery at its Nemaha project in Kansas, with mud gas samples from its Blythe 13-20 well showing helium concentrations up to 4.4 per cent.

This is a significant find, surpassing typical helium levels in the region and marking a rare occurrence for Kansas, where helium concentrations in the Hugoton gas field typically range from 0.25 per cent to 2.5 per cent.

Helium, a colourless, odourless, non-toxic and inert noble gas, is the second most abundant element in the universe, but it is rare on Earth. Formed as a by-product of radioactive decay, it is a non-renewable resource typically extracted from natural gas deposits.

Its unique properties, including an extremely low boiling point of -268.9°C, make it irreplaceable in semiconductors, aerospace, MRI technology and quantum computing.

The global helium shortage underscores the value of this discovery. Kansas is a strategic hub for US helium production, supported by a robust regulatory environment and decades of expertise from the Hugoton field.

The first significant helium discovery in Dexter, Kansas, in 1903 with a 1.84 per cent helium concentration. Dexter lies south of Blythe 13-20 near the Nemaha Ridge. Kansas currently hosts eight helium production plants, reinforcing its dominance in domestic supply.

The Blythe 13-20 well will transition to an appraisal phase in the coming weeks, with downhole monitoring equipment installed to gather data for an initial testing program.

This discovery strengthens Hyterra’s position in meeting growing helium demand, particularly for healthcare, which amounts to 32 per cent of US consumption, mainly for MRI cooling.

With no viable substitutes, helium’s critical role in advanced industries highlights the significance of this high-grade find.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au