Encounter Resources' (ASX:ENR) updated mineral resource estimate for its Aileron project in Western Australia confirms the project as a "globally significant" undeveloped niobium deposit, said Euroz Hartleys in a Wednesday note.
The company on Wednesday said its combined, inferred mineral resource estimate at Aileron grew 54% to 120 million tonnes at 0.8% grade of niobium pentoxide.
The research firm said the company continues to screen attractively on a resource basis compared with its peers, with meaningful scale now established at both bulk tonnage and high-grade subsets.
Euroz Hartleys maintained its speculative buy rating on Encounter Resources and lowered its price target to AU$0.85 from AU$0.95.
The company's shares rose almost 2% in recent Thursday trade.
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