Encounter Resources (ASX:ENR) has commenced diamond drilling at the Jessica copper project in the Northern Territory, testing multiple targets identified via seismic reprocessing and gravity surveys.

The company said the project is currently being explored under a Farm-in Agreement with South32 (ASX:S32), which has recently expanded the tenure by approximately 60% to 10,300km2.

It also said after the program, the rig will move to Carrara for a 3,000m program, with drilling expected to continue until November.

Encounter Resources added that South32 has the right to earn a 60% or 75% interest in Jessica by funding exploration expenditure within 10 years and completing a Scoping Study.