Emmerson Resources Ltd (ASX:ERM) has lifted the mineral resource estimate (MRE) for the Chariot gold deposit at Tennant Creek, Northern Territory, by 40% to 556,200 tonnes at 7.8 g/t gold for 138,800 ounces of gold.
The new MRE supports a conceptual high-grade 17.7 g/t gold open pit and 6.3 g/t gold underground operation.
Chariot resource remains open and poorly explored at depth with considerable scope to increase the resource with further drilling.
Emmerson is entitled to a free carried 6% gold production royalty from joint venture partner Tennant Consolidated Mining Group (TCMG) over all mines within the joint venture areas, including Chariot.
Chariot is one of several mines undergoing scoping studies by TCMG, ahead of finalising the mining and production schedule.
Studies are progressing over the high-grade Mauretania Gold Project.
Emerging value
Emmerson managing director Rob Bills said: “This new mineral resource estimate for Chariot is testament to the high grade and value of these Tennant Creek-style gold deposits and the emerging value of Emmerson’s 6% gold production royalty.
“New geological and geotechnical work in combination with an increased gold price suggests that extraction of ore at Chariot will benefit from a change from selective to bulk mining.
“This will allow for the inclusion of lower grade material from the chlorite shear zones that surround the ironstone hosted mineralisation and translate into a more continuous orebody at depth.
Clear pathway to monetisation
Bills continued: “The Exploration and Mining Joint Venture with Tennant Consolidated Mining Group – whereby TCMG funds $10.5 million in exploration over five years, complete mining studies such as this resource estimate plus establish a processing facility – provides a clear pathway to monetisation of further such projects.
“Emmerson retains a free carry, low risk 6% gold production royalty over all mines including Chariot.
“Until the earn-in by TCMG is completed, Emmerson remains the manager and operator of the exploration programs and retains 100% ownership of all the exploration and mining tenements.
“The next steps at Chariot include finalising the mining options and studies, permitting and assessing the potential for resource additions, particularly from extensions to the underground resource which currently remains open at depth."