Emmerson Resources Ltd (ASX:ERM) continues to advance its dual-location strategy in Australia, and has now confirmed potential for large shallow gold and deeper copper-gold mineralisation at Kadungle, one of its most advanced projects in New South Wales.
Drilling will commence shortly.
Moving to Tennant Creek in the Northern Territory, Emmerson is funded by partner Evolution Mining Ltd (ASX:EVN) as part of a $15 million earn-in and joint venture where Emmerson is the manager and operator.
Drilling is underway at Tennant Creek, providing strong news flow for the company in the near-term.
Kadungle
A new induced polarisation geophysical survey at Kadungle confirms the potential for large shallow gold and deeper copper-gold mineralisation.
The geophysical IP anomalies on consecutive lines across 1 kilometre correspond with a large zone of hydrothermal alteration and diatreme/breccia plus gold and copper in drill holes.
Rob Bills, managing director, commented:
"The recent systematic exploration over the Kadungle project has produced further indications of a large shallow epithermal gold and deeper porphyry copper-gold system.
"Pleasingly the scale of the alteration and mineralisation over ~2 kilometres has been confirmed by the recent geophysical surveys and significantly, the better geophysical targets remain untested.
"Drilling will commence in late November and is focussed on establishing the extent and grade of both shallow epithermal gold and deeper porphyry copper-gold."
Drilling will cover circa 2000 metres.
Next steps at Tennant Creek
A deep co-funded drill hole by Emmerson/Evolution and the NT Geological survey previously intersected 7 metres at 5.98% copper from a 123 metre.
A further zone of 3 metres at 4.75% copper from 162 metres remains open in all directions.
This will be tested by eight reverse circulation holes.
In addition, a down plunge diamond hole at Goanna will test for deeper extensions beneath the previously intersected, high-grade copper and gold.
Analysis
Kadungle is part of a much larger strategy by Emmerson and strategic alliance partner, Kenex Limited, to select highly prospective gold and copper-gold areas utilising a predictive, probability based targeting approach.
This is aimed at increasing the likelihood of discovering major new gold and copper-gold deposits.
These early encouraging results from Kadungle reflect well on not only the adjacent Fifield tenement, but also the other four large project areas at Wellington, Temora/Sebastopol, Kiola and Parkes.
Emmerson can earn up to 80% of the Kadungle project from Aurelia Metals Ltd (ASX:AMI) by spending $0.5 million over a five year period.
Kenex can earn up to a 10% interest in these New South Wales tenements (excluding Kadungle) upon achieving certain predetermined milestones.
Moving to Tennant Creek, drilling will be on the highly prospective Gecko-Goanna copper-gold project.
Goanna was discovered by Emmerson in 2011 but up until recently, was not a priority in the earn-in and joint venture with Evolution.
The high grade copper intersected in the more recent drill hole GODD032 plus the multiple high grade copper and gold intersections at Goanna suggest there is good potential to extend the high grade mineralisation outside of the current resource.