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.