Emmerson Resources Ltd (ASX:ERM) continues to uncover exploration upside at the Mauretania project within the Tennant Creek Mineral Field (TCMF), with a drone magnetics survey and drilling campaign hinting at further gold mineralisation.
The precious and base metals explorer believes its recent field activity may have identified extensions to the project’s oxide and primary gold zones, advancing its open-pit potential.
In tandem, Emmerson’s joint venture partner, Tennant Consolidated Mining Group (TCMG), has bought a 700,000-tonne-per-annum carbon-in-leach (CIL) processing plant, which will be transported and assembled in Tennant Creek in the first half of 2022.
The ASX-lister intends to conduct further studies and exploration at Mauretania ahead of mining activity, including a JORC resource estimate.
“Potential for further mineralisation”
Emerson Resources managing director Rob Bills said: “This drill program at Mauretania was aimed at closing off the mineralisation outside of the conceptual open pit boundary.
“However, exciting results from the new drone survey and first high-grade intersection into the primary gold mineralisation now expand the potential for further extensions to both the oxide and primary gold zones.
“The next phase at Mauretania includes undertaking further studies ahead of mining including a JORC resource estimate.
“The proof-of-concept drone survey over Mauretania provides confidence in identifying similar subtle magnetic anomalies within the Tennant Creek Mineral Field that have been overlooked or not present in the lower resolution, fixed-wing surveys."
Purchase of CIL mill
Bills added: “Our joint venture partner, TCMG, is fully funding the advanced mining studies at Mauretania as part of the $5.5 million earn-in and small mines joint venture over the Northern Project Area at Tennant Creek.
“The recent purchase of a CIL mill by TCMG will accelerate the establishment of a central milling facility in Tennant Creek – unlocking multiple stranded gold assets in the region and when in production, Emmerson’s free carried 6% gold production royalty.”
Survey says
Recently, the Mauretania project, within TCMF’s Northern Project area, has been an area of focus for the Emmerson exploration crew.
So far, the company’s ultra-high-resolution drone magnetic survey has identified further extensions to the ironstones that host high-grade gold and copper at the prospect.
The 10,000-square-kilometre survey is now 80% complete, with the proof-of-concept drone survey delineating the known Mauretania magnetic anomaly.
As a result, EMN is confident it can identify similar anomalies in the future that may have been previously overlooked.
Newly available ultra-high-resolution drone magnetic survey tools.
Drilling to unlock Mauretania potential
Recently, drilling took place at the Mauretania project to test for extensions to the shallow gold oxide zone outside the prospect’s conceptual open-pit boundary.
Some of the assay results, uncovered outside the high-grade gold mineralisation within the future open-pit, include:
- 25 metres at 2.57 g/t gold and 0.24% copper from 93 metres, including 3 metres at 6 g/t gold and 3 metres at 5.2 g/t gold and 0.51 % copper;
- 30 metres at 0.44% copper and 0.30 g/t gold from 57 metres; and
- 45 metres at 0.39% copper from 84 metres, including 3 metres at 1.6% copper.
To support the mine planning process, three geotechnical drill holes were also completed, with one intersecting ironstone and returning 3.6 metres at 1.14 g/t gold from 43.5 metres.
However, the highlight of this program, announced early last month, was the 3.95-metre intersection at 57 g/t gold.
EMN believes this result, in conjunction with the new drone magnetic anomaly to the northeast, bodes well for expanding Mauretania’s mineralisation.
This primary gold mineralisation occurs roughly 100 metres below the conceptual pit floor, but within the footwall of a massive hematite, give or take magnetite ironstone.
Interestingly, gold associated with hematite, postdating the early magnetite ironstones, underpins Emmerson’s exploration model and has been the hallmark of other discoveries at the Goanna, Monitor and Edna Beryl projects.
Driving gold exploration with TCMG
Ultimately, TCMG’s recently purchased 700,000-tonne-per-annum CIL process plant, which comes with a recently overhauled crushing and grinding circuit and a Nelson Gravity Concentrator, will accelerate the timeline to commissioning and first gold production.
The dismantling, transportation and repositioning of the mill remain contingent on permitting, stakeholder engagement and establishing infrastructure at TCMG’s preferred location at its Nobles Nob gold tailings project.
More broadly, Emmerson’s strategic alliance with TCMG covers a number of stipulations.
So far, the Hong Kong-based asset management firm’s subsidiary has earmarked $10.5 million to fund exploration across Tennant Creek’s Northern and Southern project areas.
In exchange, TCMG has the option to earn a 75% stake in both regions, as long as it provides at least $10.5 million in project funding between now and 2026.
The joint venture partner must also produce a combined 60,000 ounces of gold across both landholdings within five years.
Under this agreement, the ASX-lister will also receive a 6% gold production royalty from all small mines.
It’s also guaranteed 6% of a minimum 60,000-ounce gold production royalty across both sites.
Finally, Emmerson has established a major mines joint venture with TCMG, which means it will retain as much as a 40% stake in any discovery with more than 250,000 ounces of gold equivalent.
Next steps
Moving ahead, Emmerson will advance the Tennant Creek asset on two main fronts.
Work on mining economic assessments will see EMN undertake advanced scoping studies on existing projects such as Mauretania, Chariot, Malbec West and Black Snake under the JV with TCMG, where it is anticipated that some will advance to JORC compliant resource estimates in late 2021.
These projects will provide feed for TCMG’s mill and support a “see-through valuation” of the emerging Emmerson royalty business.
Under the joint venture, the costs associated with this phase of work are covered 100% by TCMG.
In accordance with Emmerson’s accelerated exploration strategy, drilling is set to recommence in October on Emmerson’s 100% owned Tennant Creek projects, Edna Beryl and Hermitage.
The planned Jasper Hills drilling, which will be conducted under the terms of the landmark joint venture agreement with the Marntula Corporation, remains subject to approval from the Aboriginal Area Protection Authority.