Emmerson Resources Ltd (ASX:ERM) has generated a number of new gold, silver and copper exploration targets in New South Wales.
Firstly, it has secured a 12 month option over the Kadungle project located within the Lachlan Ford Belt of New South Wales.
Historical drilling at the project has demonstrated potential for high level gold-silver and deeper copper-gold resources.
Results include 12 metres at 7.73 g/t gold and 0.12% copper and 37 metres at 0.23% copper including 6 metres at 1.1% copper.
Kadungle is located adjacent to Emmerson’s Fifield project.
Secondly, through the company’s standing strategic alliance with Kenex Limited, four targets have been identified, prospective for epithermal gold-silver and porphyry copper-gold.
Emmerson remains well funded with $5.1 million in available cash and is continuing Tennant Creek exploration, which is fully funded by Evolution Mining Ltd (ASX:EVN).
Alliance with Kenex
Kenex is a highly regarded project generation company at the forefront of developing 2D and 3D predictive models from multiple datasets.
In a blind test of this approach, the porphyry copper-gold models for NSW identified 56 million ounces of gold.
Similarly, the epithermal gold model identified 6 million ounces.
The first four of the strategic alliance top ten targets occur near the Wellington, Parkes, Temora and Fifield projects, collectively constituting some 768 square kilometres in area.
The next step of exploration is underway and will include collecting high resolution aeromagnetics to better pinpoint specific areas for ground based exploration.
Rob Bills, managing director commented:
“The first batch of targets from the strategic alliance with Kenex are underpinned by a very rigorous process of identifying the key elements that pinpoint world class mineralisation in the Lachlan Fold Belt.
“Kenex are experts in this field, having produced similar products in over 20 countries/regions around the world including in Oman (for VMS mineralisation), New Zealand (epithermal gold), the Tampia gold deposit in Western Australia and more locally, at our Tennant Creek Project in the Northern Territory.”
Kadungle option terms
Emmerson’s 12 month option over the Kadungle project requires a minimum spend during this period of $100,000.
The expenditure will be directed at reprocessing existing data ahead of drilling.
Should this work be successful, a farm-in and joint venture will follow on terms where Emmerson have the right to earn up to an 80% interest through expenditures of a further $500,000.
Analysis
The 12 month option as well as the strategic alliance with Kenex has created five new projects in New South Wales being Fifield, Parks, Wellington, Temora and the Kadungle joint venture.
The alliance with Kenex demonstrates an innovative approach to resource definition.
The investment into area selection aims to produce high quality projects and eventually mines.
Further targets, both on open and held ground are currently being assessed.
Emmerson has commenced the first phase of exploration over the granted targets and already received interest from a number of larger companies that see the potential of this innovative
approach.
While these New South Wales projects provide avenues for exploration-related news flow, Emmerson still holds 2,500 square kilometres of ground in the Tennant Creek Mineral Field of the Northern Territory.
It also owns the only gold mill in the region and holds a substantial geological database plus extensive infrastructure and equipment.
The company is up 330% year to date, currently trading at $0.16.
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