Encounter Resources (ASX:ENR) said air-core drilling along the Elephant Island fault intersected a new zone of high-grade niobium and rare earth elements mineralization at the Aileron project in Western Australia, according to a Monday Australian bourse filing.

The new zone was intersected over 500 meters east of the Crean deposit, the filing said. Drilling intersected 24 meters at 3% grade of niobium pentoxide and a 1.7% grade of total rare earth oxides from 106 meters, as well as 11 meters at a 2.3% grade of niobium pentoxide and a 1.2% grade of total rare earth oxides from 145 meters.

Encounter Resources' shares rose past 2% in recent trading on Monday.