Emmerson Resources (ASX:ERM) has increased by 25% the resource for the White Devil deposit, as part of the Tennant Creek Project in the Northern Territory.
The White Devil resource now contains 4.6 million tonnes @ 4.2 grams per tonne gold for 611,400 ounces of contained gold, including 3.75 million tonnes @ 4.4g/t gold for 530,500 ounces in the indicated category.
Emmerson’s global resource base of the Tennant Creek Mineral Field now contains 6.8 million tonnes @ 4.5g/t for 987,400 ounces of contained gold, including 5.4 million tonnes @ 4.9g/t gold for 842,700 ounces of gold in the indicated category.
Managing Director Mike Dunbar says close to 87% of the deposit is classified as indicated resources, which allows the company to progress development studies and allows conversion to an ore reserve.
“Given the size of the mineral resource White Devil may, once additional development studies are completed and accepted by TCMG — a wholly owned subsidiary of Pan African Resources (LSE:PAF), become the first deposit to be classified as a major mine deposit under our joint venture agreement,” Dunbar says.
“It is expected that should White Devil be defined as a major mine deposit, Emmerson will retain up to a 40% contributing ownership of the deposit rather than receiving a 6% gross production royalty.
“This represents the most significant development for Emmerson in the last five years and is a material improvement to Emmerson’s economic interest.”
As part of the company determining the preferred development strategy, studies have begun within Tennant Creek.
In parallel, the construction of the Pan African-owned Nobles carbon-in-lead processing facility is currently ahead of schedule. The company says commissioning is underway and first gold production is expected late this quarter.
As part of the joint venture and ongoing exploration earn-in phase is completed, a joint venture will be formed. As such, Emmerson can elect to either maintain its equity position in the Northern Project Area joint venture by contributing 25% to the exploration programs or not contribute and dilute its interest.
Emmerson Resources is a gold and copper explorer that holds 1,700km2 of tenements covering 90% of the Tennant Creek Mineral Field in the Northern Territory. Tennant Creek Mineral Field is one of Australia’s highest grade goldfields.
Write to Aaliyah Rogan at Mining.com.au
Images: Emmerson Resources
