Emmerson Resources Ltd (ASX:ERM) has received shallow high grade gold assays from its initial drill program at Edna Beryl West located in the Northern Territory.
The results from Edna Beryl West suggest mineralisation may extend to the nearby Edna Beryl mine, which is set to become Australia's highest grade gold mine through first production this year.
Results include 5 metres at 27 g/t gold from 103 metres and 13 metres at 8.7 g/t gold from 133 metres.
These results follow bonanza gold grades intersected in March grading up to 1.8 metres at 309 g/t gold.
Emmerson is fully funded by joint venture partner Evolution Mining Ltd (ASX:EVN) under the $15 million earn in to its tenement holdings in the Tennant Creek Mineral Field.
The next 3,500 metre drill campaign in the Edna Beryl district will commence this month and is fully funded.
Results from 4 reverse circulation drill holes at Edna Beryl West have been received with highlights including:
- 5 metres at 27 g/t gold including 2 metres at 51 g/t gold from 103 metres; and
- 13 metres at 8.7 g/t gold including 7 metres at 15 g/t gold from 133 metres.
These results reflect extensions to previous shallow high grade mineralisation.
New interpretations suggests that the Edna Beryl West mineralisation may extend to the Edna Beryl mine.
Furthermore, it highlights potential for repeated deeper hematite associated ironstone gold mineralisation.
First gold production
The Edna Beryl East mine is the subject of the “small mines tribute agreement” where development is currently underway and recent underground drilling produced bonanza grades of:
- 1.8 metres at 140 g/t gold;
- 1.8 metres at 309 g/t gold; and
- 1.8 metres at 93.4 g/t gold.
First production from the Edna Beryl mine is anticipated later this year and small scale mining began in March.
Planning and permitting is underway to bring forward development of additional small mines, plus potential development of the high grade Chariot Gold Mine.
The first round of assays from Edna Beryl West have unlocked a number of opportunities for Emmerson.
Not only do the high grade assays reflect extensions from previous drilling, they suggest that a much larger system exists in the area of the Edna Beryl mine, which is moving into production this year.
The Emmerson share price is up 35% year to date trading currently at $0.05 per share.
As a near term producer, Emmerson is highly leveraged to the AUD gold price, which is trading at A$1,740 per ounce, near to its 3 year high.
Emmerson continue to be fully funded in their ongoing exploration through their joint venture with Evolution.
With $5.5 million cash plus potential for risk free cash from small mines, Emmerson is highly leveraged to success across all strategic horizons.
Expected new flow in the coming months:
- Follow up 3,500 metre drill campaign in the Edna Beryl district;
- Drill results from Susan;
- Updates on permitting and approvals for additional small mines; and
- Updates on first production at Edna Beryl.
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