Emmerson Resources Ltd (ASX:ERM) has commenced its third and largest drill campaign for 2016 at the gold focused Tennant Creek Mineral Field in the Northern Territory.
The 8,000 metre program is fully funded under the $15 million earn-in agreement with Evolution Mining Ltd (ASX:EVN).
Drilling will focus on the high grade Edna Beryl project, which has produced grades of up to 309 g/t gold.
The drill program will also target the Susan and Retsina gold prospects with historical results including 11 metres at 19.5 g/t gold.
Furthermore, the Exploration Mine Management Plan for Edna Beryl East has been approved allowing for development of the first small mine.
Rob Bills, managing director, commented: “Our recent joint venture meeting with Evolution in Tennant Creek has approved a very aggressive drill program at Edna Beryl in recognition of the significance of the previous high-grade drill intercepts.”
Evolution is continuing to sole fund exploration expenditure of $15 million over three years to earn a 65% interest (Stage 1 Farm-in) in Emmerson’s tenement holdings in the Tennant Creek Mineral Field (TCMF).
The TCMF is one of Australia’s highest grade gold and copper fields producing over 5.5 million gold ounces and 470,000 tonnes of copper from a variety of deposits including Gecko, Orlando, Warrego, White Devil, Chariot and Golden Forty.
All of these deposits are within Emmerson's exploration and joint venture portfolio.
These deposits are considered to be highly valuable exploration targets and, utilising modern exploration techniques.
Drill program details
This drill campaign follows the highly successful delineation of high grade gold zones within the Edna Beryl project.
Of the 8,000 total metres to be drilled, 6,300 metres will be apportioned to Edna Beryl with the remaining 1700 metres testing the Susan and Retsina prospects.
This extensional drill campaign at Edna Beryl aims to extend the shallow high-grade gold.
Susan has excellent potential for both gold in the oxide and primary zones down plunge from historical drill holes, which intersected:
- 9 metres at 9.12 g/t gold;
- 11 metres at 19.5 g/t gold; and
- 10 metres at 14.3g/t gold.
The commencement of Emmerson’s third drill program for 2016 ensures exploration news flow will continue from the Edna Beryl gold project which has produced significant high grade gold results to date.
A revised geological interpretation based on this drilling indicates potential for further bonanza gold grades in this round of drilling.
Drill results to date suggest that a much larger system exists in the area of the Edna Beryl mine.
Furthermore, the successful grant of the Exploration Mine Management Plan at Edna Beryl East allows for development of the first small mine transitioning Emmerson into a gold producer.
Emmerson holds 2,500 square kilometres of ground in the TCMF, owns the only gold mill in the region and holds a substantial geological database plus extensive infrastructure and equipment.
The company is up 260% year to date, currently trading at $0.135.
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