Encounter Resources (ENR) has confirmed the arrival of the first diamond drill rig on site at the Elliot copper project under a joint venture (JV) agreement with BHP (BHP) in the Northern Territory.

The project is at a major structural intersection on the southwestern margin of the Beetaloo Basin which is part of the Greater McArthur Superbasin that host the giant sediment-hosted base metal deposit at McArthur River.

The diamond drill program is designed to advance the understanding of basin architecture and prospective deposition locations for sediment-hosted copper deposits.

Exploration at the project is funded by BHP of up to $25 million within 10 years, earning up to 75 per cent interest.

Commenting on copper exploration at the Elliot Project, Managing Director Will Robinson said it is an important milestone for the company.

“The Northern Territory is fast emerging as one of the most significant global opportunities for the discovery of new, large sediment-hosted copper,” he said.

“Encounter is excited to be working in partnership with BHP to progress the Elliott Project.”

The drilling component of the program includes an estimated 2000 metres of diamond drilling.

The drill program is scheduled to be completed before the end of the dry season in November 2022.

Shares in Encounter Resources were down 4.17 per cent to close at 11.5 cents.