- Final approvals granted by the NT Government for the commencement of production at the Edna Beryl Gold Mine
- First 600t of development ore averages ~ 40g/t gold
- First new mine in the NT for over a decade and potential to be one of the highest grade gold mines in Australia
- Drilling continues to expand the Edna Beryl mineralisation
- Further high grade gold projects within Emmerson's extensive tenement holdings currently undergoing permitting and approval
Mining at Edna Beryl East is being undertaken by an operator specialising in small mines (the Edna Beryl Mining Company) under a tribute agreement. The agreement relates to a 3D envelope around the shallow mineralisation (see Figure 2 in the link below). Drilling last year extended the mineralisation beyond this 3D envelope, opening up the possibility of either expanding the current mining area or, if the next round of drilling is successful, contemplating a larger scale of development.
The tribute agreement with the Edna Beryl Mining Company provides Emmerson with a number of advantages:
- A risk-free income stream from its non-core assets via a royalty agreement that is proportional to the final amount of extracted gold and Emmerson's equity in the Tennant Creek Mineral Field JV (which is currently 100%);
- Future access to refurbished underground workings for near mine exploration; and
- The opportunity to monetise other non-core assets within its extensive tenement holding, subject to formal agreements being executed.
Assay results from underground sampling of the 90m level development drive at Edna Beryl East correlate well with the bulk sampling of development ore on the ROM pad (see Figures 3 & 4 in the link below). Options to treat the ore are well advanced and include toll treatment or sale to third party mills. Longer term it is envisaged that the Central Milling Facility and/or refurbishment of the Emmerson Warrego plant will provide greater benefits to all stakeholders.
Edna Beryl represents the third discovery by Emmerson (and partners) of high grade, hematite-chlorite hosted gold and copper-gold mineralisation. It validates our science based approach to exploration through ushering in a new generation of deposits that have remained largely undetected by previous explorers.
Emmerson's Managing Director, Mr Rob Bills commented: "The commencement of production at Edna Beryl is a pivotal step since Emmerson began exploration in the Tennant Creek Mineral Field in 2008. It not only provides a revenue stream but establishes a template for unlocking value in many of our other projects contained within our extensive, 3,000km2 tenement package. We believe this "tribute style of agreement" maximises value and mitigates risk whilst providing great insights for our near mine and regional exploration programs. As we know, small mines can often grow into big mines!
On behalf of the Emmerson Board and our partner Evolution Mining Limited, we congratulate the Edna Beryl Mining Company for its expertise in developing this new generation of high value, small footprint style operations. We acknowledge the hard work and continued support by the Traditional Owners of the Land on which the Edna Beryl mine is situated. We also congratulate the NT Government for their ongoing support and vision under the banner of Transforming the Territory. In particular their initiatives to revitalise Tennant Creek which will undoubtedly provide benefits to all stakeholders."
The Minister for Primary Industry and Resources, the Hon Ken Vowles MLA commented: "Congratulations to all on what we hope is the first mine of many in the Tennant Creek Region.
We are focussed on developing the Tennant Creek region as the mining services hub of the Territory.
We recently announced a feasibility study into a common user mineral processing facility. This investment will help further development of the mining and mineral exploration industry in the Tennant Creek region.
The cyclical nature of the industry means that investing in mineral exploration now is vital to ensuring the discoveries that will become the mines of tomorrow are made.
We are working hard to facilitate and attract investment to the region to help grow our industries and create jobs for Territorians."
About Tennant Creek and Emmerson Resources
Emmerson is a leading gold and copper gold explorer with projects in the Northern Territory and New South Wales and is led by a board and management group of experienced Australian mining executives including former MIM and WMC mining executive Andrew McIlwain (non-executive chairman), and former senior BHP Billiton and WMC executive Rob Bills (Managing Director and CEO).
The Northern Territory projects are centred around the Tennant Creek Mineral Field (TCMF), which is one of Australia's highest grade gold and copper fields producing >5.5 Mozs of gold and >470,000 tonnes of copper from a variety of deposits including Gecko, Orlando, Warrego, White Devil, Chariot and Golden Forty, all of which are within Emmerson Resources (ASX:ERM) exploration and joint venture portfolio. Emmerson's track record of discovery includes copper and gold mineralisation at Goanna, Monitor, Mauretania and more recently, the discovery of very high-grade gold at Edna Beryl - the first discoveries in the TCMF for over a decade.
Emmerson holds 3,000 km2 of ground in the TCMF, owns the only gold mill in the region and is in the process of monetising a pipeline of small high-grade exploration targets via a Tribute Agreement with a specialised small mines company. The first of these small mines will be at Edna Beryl, with production to commence in 2017.
Exploration in the TCMF is funded via a Farm-in agreement with Evolution Mining Limited (ASX:EVN), where Evolution is sole funding exploration expenditure of $15 million by 31 December 2017 to earn a 65% interest (Stage 1 Farm-in). Evolution can then sole fund a further $10 million over two years to earn an additional 10% (Stage 2 Farm-in). Emmerson is the operator and manager during the Stage 1 Farm-in.
Emmerson has recently commenced exploration on new gold-copper projects in NSW, identified (with our strategic alliance partner Kenex Limited) from the application of "big multiple independent datasets" - aimed at increasing the probability of discovery through enhanced predictive capability (particularly important in covered terrains). The highly prospective Macquarie Arc hosts >80Mozs gold and >13Mt copper but with these resources heavily weighted to areas of outcrop or limited cover. Emmerson's five exploration projects cover some 1,500 km2 of Macquarie Arc rocks and contain many attributes of the known deposits but remain under explored due to historical impediments, including overlying cover (plus farm lands) and a lack of exploration focus. Kadungle is an option (and potential JV) with Aurelia Metals covering 43km2 adjacent to Emmerson's Fifield project.
To view tables and figures, please visit:
About Emmerson Resources Limited
Emmerson Resources Limited (ASX:ERM) (OTCMKTS:EMMRF) (FRA:42E) is an ASX listed gold resource company that recently (July, 2014) secured a landmark Joint Venture agreement with Evolution Mining (ASX:EVN).
- Has an aggressive exploration program and dominant position in the world class Tennant Creek Mineral Field.
- Is applying new exploration concepts and technologies to unlock the next generation of gold and copper deposits.
- Owns the only carbon-in-pulp gold plant in the region.
- Has an experienced Board and Management team.
Evolution Mining Limited
Emmerson Resources Limited