Emmerson Resources (ASX:ERM) has completed a Scoping Study of the White Devil Project in the Northern Territory, revealing a “major” mine development opportunity for the company.
The study shows that White Devil is relatively insensitive to the gold price and shows the project is a major mine under the terms of the joint venture agreement with Tennant Mining. This will result in Emmerson retaining a 40% contributing interest in the project.
Emmerson, which has a market capitalisation of $85.8 million, also highlights a low pre-production capital cost of $11.8 million, as well as a peak capital requirement of $32.8 million in month 12 of the operation.
White Devil has a forecasted seven year mine life, with a production rate of 650,000 tonnes per year through the existing Nobles carbon-in-leach processing facility. The average production is forecast to be 64,000 ounces per year.
The study also resulted in high conversion of the project’s mineral resource into conceptual mine designs. White Devil’s resource contains 4.2 million tonnes @ 4.2 grams per tonne gold for 611,400 ounces.
As such, the open put designs contain 3.2 million tonnes @ 3.72g/t gold for 379,000 ounces of contained gold, while the underground designs contain 1 million tonnes @ 3.2g/t gold for 100,500 ounces of contained gold.
Managing Director Mike Dunbar says progressing the project from the first resource to a completed Scoping Study in less than six months is a great effort by the team.
“The study highlights the potential for very strong financial returns at gold prices well below the current spot gold price,” Dunbar says.
“The base case using $5,000 per ounce gold price resulted in operating free cashflow of $1.27 billion, an net present value of $890 million, a competitive operating cost of around $2,050 per ounce, providing very high margins with very low peak capital requirement of only $32.8 million – a truly exceptional outcome.
“As a result, Emmerson along with our joint venture partner Pan African Resources are fast tracking the Feasibility Study, with work already underway and completion of the FS is expected in H1 FY26.”
Emmerson Resources is a Perth-based explorer with an emerging gold royalty business. The company holds a large tenement package in the Tennant Creek Mineral Field in the Northern Territory.
Write to Aaliyah Rogan at Mining.com.au
Images: Emmerson Resources
