Emmerson Resources Limited (ASX:ERM) is investigating the re-establishment of title over an exploration licence in Central West NSW that is intended to form part of the company’s Fifield ground holding.
This follows the company ascertaining that the status of tenement EL 6226, which is otherwise known as the Kadungle project, is uncertain.
Kadungle is a joint venture with Aurelia Metals Ltd (ASX:AMI) and covers 43 square kilometres adjacent to Emmerson’s Fifield project.
Three pathways
Emmerson is advancing three concurrent investigative pathways with a view to re-establishing clear title over the tenement:
- Consideration of extraordinary circumstances: The company has engaged with the NSW Department of Mining, Exploration and Geoscience given the extraordinary circumstances of remote working conditions and access to Emmerson’s internal tenement management system imposed as a consequence of protocols related to the COVID-19 virus.
- Re-application for Kadungle tenure: An application for EL 6226 has been lodged by Emmerson, however, noting that Emmerson is not the first-in-line applicant.
- Future commercial resolution: Emmerson has contacted the first-in-line applicant, a privately-owned company, to explore the potential for a commercial solution in the event that a procedural solution with the NSW department is not possible.
Internal investigation
The company has also instigated an internal investigation into its tenement management, including the appointment of an independent external tenement specialist.
At this stage, Emmerson believes that none of its other tenements in NSW or the Northern Territory is at risk but notes that there is no assurance of recovering EL 6226.
Within Macquarie Arc
The Fifield project is within the highly prospective Macquarie Arc that hosts more than 80 million ounces of gold and in excess of 13 million tonnes of copper.
Emmerson’s exploration projects contain many attributes of the known deposits within the arc but remain underexplored due to historical impediments, including overlying cover and a lack of exploration.