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Emmerson Resources commands a dominant tenement position in Australia's Tennant Creek Mineral Field. 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. Emmerson Resources owns the Warrego Gold Plant, 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, following complete refurbishment in early 2003.
Emmerson Resources completes JV agreement with Ivanhoe Australia
Closing a Joint Venture Agreement with Ivanhoe Australia (ASX: IVA) represents somewhat of a coup for Emmerson Resources (ASX: ERM) as it will enable an aggressive exploration program over the prospective Tennant Creek Mineral Field.
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.
