Under a $28.0 million exploration Joint Venture with Ivanhoe Australia Limited (ASX:IVA), two additional drill rigs will commence next week, operating in parallel with the existing diamond drill rig.

This will bring the drill rigs to three (one diamond, one RC and one RAB) and accelerate the testing of seven Tier 1 targets identified in the Red Bluff and Tinto areas.

At Red Bluff, "encouraging initial results" were received from the first two diamond drill holes at Ella, with the intersection of extensive widths of magnetite-chlorite iron-oxide alteration together with anomalous zones of gold, copper, bismuth and molybdenum.

These results have confirmed the presence of a large, sub vertical, iron-oxide body that is open in all directions and requires further drill testing.

At Tinto, extensive zones of iron-oxide and chlorite alteration have been intersected in three diamond drill holes, together with anomalous zones of gold, bismuth and base metals. This drilling has confirmed the presence of multiple ironstones over a 500m strike - open in all directions and with further drilling underway.

Emmerson has systematically evaluated a number of undercover projects within its tenements aimed at finding Tier 1 discoveries, defined as +1million ounce gold equivalent projects.

Emmerson will focus on multiple existing and new undercover Tier 1 targets (+1.0Moz gold equivalent) with a 40,000m drilling program over the course of the 2010 field season.

All of which will be focused on a broad range of exciting undercover Tier 1 projects developed over the past two years including advanced projects such as Pinnacles North, Rising Star, Tinto and Voltan.

As well as some promising and new early stage areas that have been generated from the refinement of geological concepts and processing technologies over the northern wet season.

Exploration will continue be funded by Ivanhoe Australia Limited (ASX: IVA) as part of an $18.0 million, 3-year farm-in joint venture established last year.

Under this joint venture, Ivanhoe can earn a 51% interest in the majority of Emmerson’s Tennant Creek tenement package.

The 2010 drilling program is being launched in three key stages.

RAB (rotary air blast) drilling has already commenced at the Tier 1 Voltan project, which forms part of the larger Northern Project Area in the Company’s tenement portfolio in the Tennant Creek Mineral Field RC (Reverse Circulation) drilling is scheduled to commence on 21 April (weather permitting), also at the Voltan Project before moving to the Tinto Project. This drilling will comprise both pre-collars and target testing. 

Heavy seasonal rains delayed the start. Results should be available in early May 2010.

Once this program is complete, a 5,500m RAB program will commence at Pinnacles North (Southern Project Area), where Emmerson has so far tested only a small portion of a very large (2km x 800m) system.

This drilling is aimed at detecting leakage of metals (gold, copper, bismuth and silver) in the sub-surface above untested gravity and magnetic anomalies.

After this, the RAB rig will undertake a 2,000m program at Tinto (Southern Project Area) to follow up anomalous historic geochemistry and test for leakage of metals and shallow hematite ironstone (a potential host to supergene gold mineralisation).

On completion of the Tinto drilling the RAB rig will target six recently defined undercover reconnaissance targets within the central part of the Tennant Creek Mineral Field, known as the Red Bluff area.

Diamond Drilling is scheduled to commence on May 16 at the Pinnacles North project, then move on to Voltan, Tinto and Rising Star.

It will then test a number of other Tier 1 projects identified from an enhanced understanding of the geology and geophysics derived from last year’s drilling campaign, as well as from additional gravity and electrical geophysics collected this year.

The Pinnacles North drilling campaign is still being finalised pending the processing of new geophysical data. However, given the very positive results from last year and the off hole magnetic anomaly (potential near miss scenario) detected late last season in PNDD026, this program is of obvious significance and will be announced shortly.

Systematic drill testing of 14 greenfields and two brownfields Tier 1 (+1.0 Moz gold equivalent) targets were undertaken by Emmerson. Three drill rigs were active across Emmerson’s large tenement holding in the Tennant Creek Mineral Field under the recently concluded $18.0M JV with Ivanhoe Australia.

A bonanza gold intersection of 2m @ 50.6 g/t Au was encountered from Pinnacles North.  A high-grade copper intersection of 1.9m @ 6.49% Cu returned from Rising Star geophysical anomalies, including 0.6m @ 18.3% Cu.

Further assay results are awaited from drilling activities during the Quarter.

Emmerson undertool 8,556 metres of Reverse Circulation (including pre-collars) and Diamond Drilling completed including deeper drilling at Pinnacles North plus early stage testing of several Tier 1 targets in the Northern Project Area (NPA) including Vivid, Olympus, Macedon, Delphi and Rising Star.

Over 19,000 metres of regional RAB drilling was completed prior to commencement of the northern wet season resulting in the identification of several shallow geochemical targets.

Emmerson is systematically testing the deep pipeline of Tier 1 targets (potential to host +1.0Moz gold equivalent) it has identified using state-of-the-art geophysical techniques and the application of new geological concepts to the search for a new generation of mineral deposits in this world-class mineral province.

The Company’s asset base also includes ownership of the only gold treatment facility in the region (the Warrego carbon-in-pulp processing plant) and a substantial geological database plus extensive infrastructure and equipment.

The company had cash reserves at the end of the quarter of $11.7m.

Following the announcement, shares in the company increased 17% to 27.5c.

The latest results include a bonanza gold intersection of 2m @ 50.6 g/t Au at Pinnacles North and a high-grade copper intersection at Rising Star.

The encouraging results are from early drill testing of the pipeline of 26 top-ranked Tier 1 undercover targets within the Tennant Creek Mineral Field being carried out under Emmerson’s A$18 million joint venture with Ivanhoe Australia.

The targets were identified as a result of Emmerson’s A$2 million investment in the acquisition of detailed gravity and magnetic geophysics across its entire tenement package in the Tennant Creek Mineral Field, combined with the application of new concepts and an enhanced geological understanding of the region.

The 26 top-ranked targets from a total of approximately 56 new greenfields targets identified are being systematically evaluated during the 2009 and 2010 field seasons.

Excellent progress has been made during the 2009 field season since the completion of the joint venture in April, with three drill rigs advancing exploration across a number of projects. The initial phase of work has assisted in building the geological understanding across several of these undercover, Tier 1 targets ahead of further review and systematic drill testing in 2010.

A total of 6,000m of diamond, 19,000m of RC and 30,000m of RAB drilling completed across 18 projects, with further assay results awaited.

Drilling has gained momentum in the Trinity Area – primarily focussed on building the undercover geological picture ahead of targeting the mineralisation.

A regional RAB program is underway with several shallow geochemical targets already identified within the Trinity Project area, including Pinnacles North.

Almost 10,000m of combined Reverse Circulation and pre-collar drilling completed.  Visible copper sulphides intersected in magnetite ironstone at the Colombard prospect (assays awaited).

Diamond drilling was focussed on stratigraphic drilling over the Trinity 1 target and several other Tier 1 targets.

Large polymetallic geochemical anomaly confirmed over a strike extent of 750 metres from shallow RAB drilling at Pinnacles North.

Emmerson has a strong cash position of $12.5 million at 30 October 2009 which, the company said, based on current projections, will be maintained.

First pass RAB drilling was completed at its Pinnacles North Prospect in the Northern Territory during the September quarter and has identified a 750 metre long geochemical anomaly.

The anomaly is open down-dip and down-plunge plunge and to the east along strike.

Anomalous results from the RAB drilling include: 31m @ 0.12% Cu, 1.52 ppm Ag & 19 ppb Au incl. 4m @ 57 ppb Au & 0.12% Zn; 40m @ 0.10% Cu, incl. 1m @ 742 ppb Au, 0.1% Bi, 16.33 ppm Mo & 30% Fe (EOH); 27m @ 0.12% Cu, 29 ppb Au & 2.06 ppm Ag (EOH); and 4m @ 0.40% Cu, 87 ppb Au, 1.71 ppm Ag & 0.14% Zn.

The next stage of RC drilling at the Pinnacles North Project has confirmed these geochemical results, indicating that the geochemical anomaly is strengthening at depth.

These early results are highly encouraging, particularly considering that the drilling to date has only been within the top 75m of the weathered zone where the gold and base metal concentrations can be dispersed and subdued, said managing director Rob Bills.

The Pinnacles North project is part of the greater Trinity area, connected via a prominent north-south trending fault, and was first identified as a compelling Tier 1 target with the assistance of the new gravity geophysics acquired by Emmerson over the Tennant Creek Mineral Field.

A total of 6,848 metres of Reverse Circulation (RC) drilling was completed during the September quarter which focused on testing selected regional greenfields targets, including detailed stratigraphic drilling within the Trinity and Colombard project areas.

An additional 2,910 metres of pre-collar drilling was completed in advance of diamond drilling (DDH). Another 2,693.8 metres of DDH was completed during the quarter, which focused on Trinity 1 and select greenfields targets to assist with geological interpretation and the refinement of the geophysical models.

Another 11,656 metres of regional Rotary Air Blast (RAB) drilling was completed across several greenfields targets to test for geochemical dispersion anomalies.

Emmerson Resources is an Australian-based gold company focused on the exploration and development of the richly-endowed Tennant Creek Mineral Field (TCMF) in the Northern Territory of Australia.

The company has a dominant ground position covering some 2,700km2. Emmerson is progressing exploration on the TCMF in Joint Venture with Ivanhoe Australia Limited pursuant to a farm-in agreement.  Ivanhoe is sole funding $28 million exploration to acquire and retain 51%.

Emmerson has implemented an aggressive exploration program aimed at discovering a new generation of Au-Cu deposits in the Greenfields environment.

The strategy is based around the application of modern and innovative exploration techniques to reactivate the world class Tennant Creek Mineral Field - a field which produced over 5.5million ounces of gold and 470,000 tonnes of copper since its discovery in the 1930s.

The Company’s asset base also includes ownership of the only gold treatment facility in the region (the Warrego carbon-in-pulp processing plant) and a substantial geological database plus extensive infrastructure and equipment.

Emmerson is headed by a group of experienced Australian mining executives including former MIM and WMC mining executive Andrew McIlwain as Non-Executive Chairman, and former senior BHP Billiton and WMC executive Rob Bills as Managing Director and CEO.

Good progress has been achieved toward the systematic evaluation of the 26 Tier 1 undercover projects identified on its tenements, with three drilling rigs currently active across a number of these targets.

While aggressive exploration is continuing, all of these targets are subject to meeting specific “success” milestones before moving to the next stage.

Shares in Emmerson were down slightly, falling 1, or 2.9 per cent, to 33c.

Drilling is now underway to test four Tier 1 targets in the Northern Project Area (NPA) and four Tier 1 targets in the Ivanhoe-Colombard Area.

A 750m long leakage anomaly has been identified at the Pinnacles North Project within hematite-altered rocks by geochemical RAB drilling, intersecting significant widths of anomalous copper, silver, gold, zinc, bismuth and molybdenum.

The next stage of Reverse Circulation (RC) drilling confirms these geochemical results and indicates the leakage anomaly, which is open down plunge and along strike to the east, is strengthening at depth.

Recent RC drilling results include 15m at 152 ppb Au from 75m incl, 3m at 313 ppb Au and 0.24 per cent Cu from 81m and 3m @ 0.30 per cent Cu and 0.45 per cent Pb and 0.10 per cent Zn from 66m.

These early results are highly encouraging, particularly considering the drilling to date has only been within the top ~75m of the weathered zone and where the gold and base metal concentrations can be dispersed and subdued.

Meanwhile, at the Trinity 1 project a potential new style of iron oxide mineralisation not previously seen in the Tennant Creek Mineral Field has been identified following first-pass stratigraphic RC and diamond drilling.

The mineralisation has similarities to other iron-oxide provinces with features, including a large felsic and mafic intrusive/extrusive centre, intense “red rock” hematite and chlorite alteration, brecciation, and minor disseminated and vein-fill sulphides.

While assay results are awaited for a number of projects, the drilling continues with the exploration focus now on early stage testing of Tier 1 projects in the Northern Project Area (NPA), encompassing the Vivid, Olympus, Delphi, and Macedon targets, and in the Ivanhoe-Colombard area, testing of the Drakkar, Colombard 1 & 2 and, Trireme targets.

It is anticipated that the next milestone at the Pinnacles North Project – which includes diamond drilling – will commence once the drill rig completes the first phase in the Northern Project Area.

All exploration expenditures being incurred at Tennant Creek are now covered by the previously announced $18 million Joint venture with Ivanhoe Australia.

This field is characterised by extremely high-grade gold & gold-copper deposits, with a historical production in excess of 5.5 million ounces of gold and 488,000 tonnes of copper.

Rob Bills, Emmerson's managing director said the deal with Ivanhoe provides it with the required financial and technical resources to aggressively explore its Tennant Creek tenements.

He said Emmerson will manage and perform the exploration during the Farm-In period and which, has been sole funded by Ivanhoe since 16 April, 2009.

Under the JV deal with Ivanhoe, Ivanhoe will sole fund expenditure of $18.0 million over a maximum of three years to enable it to earn a 51% interest in the majority of Emmerson’s tenements.

Ivanhoe has to sole fund Joint Venture Expenditure for the initial $10.0 million of expenditure over a maximum 5-year period to retain its 51% Joint Venture interest.

The Warrego gold plant ownership remains with Emmerson. It is located 35 kilometres north-west of Tennant Creek. The plant has an annual production capacity of 300,000 tonnes and was last operated in December 2005,

To complete the picture, any Tier 2 Projects discovered (i.e. those with less than a 250,000 gold equivalent ounce resource) will be retained 100% by Emmerson.

Three drill rigs are operating on the new tier 1 (>1.0m oz gold equivalent) targets.  Investors won't have to wait long for news, first assay results are expected within the next two weeks.