Emmerson Resources (ASX:ERM) has attracted Evolution Mining (ASX:EVN) to fast track exploration and development of gold and copper at its Tennant Creek Mineral Field in the Northern Territory.
Evolution, which has a market cap. of circa $575 million, will sole fund expenditure of $15 million on exploration over the next three years to earn a 65% interest in the 2,500 square kilometre project.
It has the option to earn a further 10% by sole funding a further $10 million over 2 years following execution of the joint venture.
Exploration will drill test a number of high quality gold-copper targets aimed specifically at a rapid resumption of mineral production from Tennant Creek, which had previously produced over 5.5 million ounces of gold and 470,000 tonnes of copper at average grades of 15-20 grams per tonne gold and 2-4% copper.
While decisions on the 2014 exploration and near mine drill program are still to be finalised, the next round of drilling is expected to commence at Chariot East and West to expand the Chariot Deposit (170,000 tonnes at 17.4g/t gold).
Other near-mine projects to be tested include targets around the historic Eldorado Mine that had produced gold at a head grade of 17.9g/t.
This will involve applying new technology and ideas including the new understanding that high grade gold is often associated with hematite, is thus non-magnetic and “blind” to aeromagnetic based exploration – as used by many previous explorers.
In addition to the Joint Venture, Evolution has agreed to subscribe for 49,144,000 of Emmerson shares priced at $0.0381 each, or a total of $1.87 million. It will also issue 2,504,383 shares priced at $0.7986 each to Emmerson.
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