Emmerson Resources (ASX:ERM) is looking beyond the rich Tennant Creek Mineral Field in a new alliance with Kenex Ltd that will utilise its predictive mineral targeting to unearth new gold and copper-gold exploration targets.
Kenex’s predictive modelling for minerals in 2D and 3D has successfully identified new exploration targets and resource development projects including those for ASX public listings.
The alliance will take advantage of the downturn in commodity markets to secure mineral projects for a modest price.
"Likely targets for the alliance are in New South Wales and Queensland, for epithermal gold and porphyry copper - gold," Emmerson Resources' managing director Rob Bills said today.
This will take full advantage of the downturn and capitalising on the complementary skills of both companies to make the next discoveries.
This is in addition to Emmerson's core project focus at Tennant Creek.
Last week, drilling by operator Emmerson intersected grades of up to 15.4% copper that could extend the existing mineral resource at Goanna at the Tennant Creek joint venture with Evolution Mining (ASX:EVN) in the Northern Territory.
Multiple zones of high grade copper were returned including: 7 metres grading 5.98% copper from 123 metres including 3 metres at 10.4% copper.
This is under the $15 million earn-in by Evolution Mining to the project and potentially worth $28 million under the JV.
Kenex alliance details
Emmerson will hold exclusive rights to any new targets identified for a period of 12 months. Through a modest payment to Kenex, it can acquire full target exclusivity while Kenex can earn up to a 10% interest in any tenements acquired as part of the alliance.
This is based upon achieving certain predetermined milestones, with exploration costs shared proportionally.
Emmerson Resources MD Rob Bills said: “This strategic alliance with Kenex provides additional upside to Emmerson shareholders while maintaining focus on our key Tennant Creek asset.
"The alliance harnesses the complementary skill sets of Kenex and Emmerson to increase the probability of discovering new mineral deposits in other prospective regions of Australia for a modest capital outlay.
"In particular, the alliance aims to identify quality gold and copper-gold targets during the current downturn, where the chance of securing large tenement positions over such targets has never been better.”
Kenex predictive modelling
Kenex's 2D and 3D predictive models aim to generate targets and mineral deposits in locations with the greatest geological potential in relation to the mineral system being evaluated.
It can also hone in on drill hole targets using its predictive 3D modelling.
Since inception over 12 years ago, Kenex has acquired numerous geological datasets and compiled close to one hundred predictive models for use in exploration targeting studies for a variety of mineral systems on most continents.
Kenex’s managing director, Dr Greg Partington added: “Kenex is very pleased to continue the relationship that we have developed with Emmerson over the past 12 months at its Tennant Creek project.
"The prospectivity and targeting we have been developing is a much undervalued process and will deliver industry leading advantages to the alliance."
Emmerson chasing big mineral discoveries in Tennant Creek
Fully funded for deep drilling, Emmerson appears closer than ever before to making further gold–copper discoveries through the application of new geological concepts and technologies in partnership with Evolution Mining.
In one of the few underexplored high grade gold provinces left in Australia, where only 8% of drill holes reached a depth greater than 150 metres - the company is using systematic exploration and new technology.
To better understand the depth potential, Emmerson is using seismic for the first time, acquiring as 2D or 3D.
The company will look to rapidly grow resources ahead of production & discover a new generation of gold and copper deposits in one of Australia’s highest grade gold and copper fields.
TC has produced over 5.5 million ounces of gold and 470,000 tonnes of copper from deposits - that are all within Emmerson exploration and JV portfolio.
With average grade TC deposits in the range of 15-20g/t gold, the pickings are rich.
The Goanna discovery is proof of TC's potential to yield returns. Based on the Goanna 2D seismic and copper discovery and using the copper/gold ratio from historical mines indicates potential for an additional 1.7 million ounces of gold to be found.
Two prong strategy
The aim is to deliver new targets & discoveries in the greenfields and identify underexplored targets in the brownfields to add to current JORC resources.
With JV funding from Evolution of $15 million over three years and an option for a further $10 million, Emmerson is making strides towards discovering a new generation of gold-copper deposits in the Tennant Creek Field.
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