Emmerson Resources (ASX:ERM) has received its final batch of assay results from campaign 3 of drilling at the Edna Beryl project in the Northern Territory.
Drilling features grades of up to 11.4 g/t gold and significantly confirms continuation of the Edna Beryl high-grade gold zone at depth.
Diamond drill hole EBWDD054 is the deepest hole drilled to date at Edna Beryl at 220 metres depth and intersected 6.4 metres at 2.75 g/t gold and 0.54 g/t silver.
The same hole also intersected 2 metres at 2.11% copper, 8.3 g/t silver, 2.06% bismuth and 0.33 g/t gold.
All exploration is fully funded by the farm-in and joint venture with Evolution Mining (ASX:EVN).
Evolution has formally notified Emmerson that it will complete its earn-in obligations under the joint venture and extend it to capture Emmerson’s newly acquired Rover project.
Tennant Creek Mineral Field joint venture
Through expenditure of $15 million over three years, Evolution will 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.
Rover project
Late last year Emmerson entered into an agreement to gain access to the highly prospective and underexplored Rover project, which has been included in the TCMF joint venture.
An in-depth geological and structural review including reprocessing of the magnetics has provided some new insights into the potential of this tenement package.
It has highlighted a number of magnetic targets (the typical host to the gold and copper mineralisation) that remain untested or inadequately drill tested.
Geophysical surveys will likely be undertaken to further refine targets for drilling.
This new project provides an opportunity for Emmerson to apply its exploration expertise to a relatively immature but emerging mineral field that is near to mining, processing options and infrastructure.
Analysis
The latest assays confirm the high-grade gold mineralisation, which features grades up to 1,043 g/t gold, continues at depth.
Of note is the high-grade bismuth and copper in hole EBWDD054, which based on the historical metal zonation from other mines, indicates proximity to high-grade gold.
Investors remain leveraged to exploration-based news flow with a 2017 exploration program that includes:
- A detailed, orientation gravity survey will commence (once the wet season abates) over the Edna Beryl project to test the efficacy of this technique in discriminating and extending the multiple hematite ironstones intersected in the drilling;
- If successful this survey will then be extended to cover additional new Edna Beryl targets in the immediate district;
- Geological review of the Rover project complete with the delineation of some outstanding targets – these will require screening with additional geophysics ahead of drilling;
- Exploration is well underway in New South wales with detailed high-resolution magnetic surveys completed over the Wellington, Temora and the Kadungle area; and
- Ground based activities are expected to commence at Kadungle early next month.
Shares in Emmerson are trading up 200% over the past 12 months, currently priced at $0.11.