Emmerson Resources Ltd (ASX:ERM) is implementing plans this quarter to advance its Tennant Creek Gold-Copper Project in the Northern Territory and its gold-copper projects in New South Wales.
At Tennant Creek, the company is building a pipeline of high-value mines for toll treatment and has royalty arrangements in place which are providing revenue.
During the December quarter, Emmerson continued a sub-audio magnetics geophysical survey over the Southern Project Area (SPA) aiming to grow gold resources around the historic mines.
The SPA is an exploration earn-in and joint venture project between Emmerson and Territory Resources Pty Ltd where $5 million in exploration will be spent over five years, fully funded by Territory.
A total of 76 drill holes for around 3,000 metres were completed during the quarter across several shallow oxide gold projects including Black Snake, The Susan and the Three Thirty prospects.
Territory has now cleared the remainder of the samples from this drilling for assay, with results expected in the current quarter.
Mauretania results
Drilling at the Mauretania prospect within Emmerson's 100%-owned Northern Project Area (NPA) at Tennant Creek returned high-grade gold results during the quarter including:
- 10 metres at 3.01 g/t from 62 metres;
- 6 metres at 2.43 g/t from 82 metres;
- 4 metres at 4.64 g/t from 94 metres, including 2 metres at 7.92 g/t; and
- 1 metre at 7.19 g/t from 101 metres.
Positive visual geology returned from three shallow reverse circulation holes warranted a program of diamond drilling, which was completed in December 2019 and results are expected in February 2020.
NPA processing opportunities
Discussions on potential processing opportunities across Emmerson’s 100%-owned NPA, including Mauretania, were held with Elmore Ltd (ASX:ELE).
Elmore is seeking to establish a mill in the Tennant Creek region to process the Peko tailings project for ICA Mining.
Territory has advised that all major components for refurbishment of the Warrego Mill have been purchased, however, delivery of the Falcon gravity concentrator has been delayed.
Key Tennent Creek activities planned for the March 2020 quarter include:
- Compilation of recent Mauretania and SPA drill results ahead of further drilling;
- Ongoing discussions regarding multiple processing options for Emmerson’s 100%- owned high-grade gold projects within the Tennant Creek Mineral Field; and
- On-ground activities at the Warrego Mill to include reconfiguring the gravity and leach circuits ahead of commissioning.
NSW exploration
In NSW Emmerson is exploring for large copper-gold porphyry deposits by adopting modern exploration techniques and technology in a prospective region.
The second phase of drilling at Whatling Hill project during September 2019 assisted in providing vectors to the core of this copper-gold porphyry system.
A deep diamond drill hole was only partially completed late in the quarter due to difficulties with the trajectory of the hole and assay results are expected in late February.
IP anomalies identified
Emmerson also completed a large IP geophysical survey at the Kiola project in late December, which is yet to be fully interpreted, however, initial results appear to be consistent with the presence of sulphides associated with porphyry copper-style mineralisation.
Several IP anomalies have been identified with three significant anomalies proposed for drill testing in early 2020.
The company continues to conduct systematic exploration across its NSW projects with Kadungle and Kiola the next most advanced.
Drilling is planned for both these projects in early 2020 with potential for 50% of the drilling costs to be met by the NSW Co-operative Drilling Program, up to a maximum of $200,000.
Activities planned for NSW in the March 2020 quarter are:
- Planning and preparation for drilling at Kadungle and Kiola to test compelling new drill targets following the integration and interpretation of the 3D geophysical surveys;
- Planning for the execution of a 3D IP survey to assist drill targeting at the Wellington project; and
- Planning and execution of further exploration across Whatling Hill.