Emmerson Resources Limited Stock Market Press Releases and Company Profile
Quarterly Activities Report
Quarterly Activities Report

Perth, July 25, 2017 AEST (ABN Newswire) - Emmerson Resources Limited (googlechartASX:ERM) (googlechartEMMRF:OTCMKTS) provides the Company's Quarterly Activities Report for the period ending 30 June, 2017.


- 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

- Drilling continues to expand the Edna Beryl mineralisation

- Pre-Development drilling at Black Snake, Emmerson Resources next small mine intersected:

-- 7m at 4.79g/t gold from 18m (drill hole BSRC017) which includes:
o 3m at 9.51g/t gold from 18m & 1m at 14.9g/t gold from 19m.

-- 7m at 2.85g/t gold from 19m (drill hole BSRC018) which includes:
o 2m at 7.48g/t gold from 23m.

- Drill hole KDD015 at the Kadungle Project intersects multiple zones of alteration and mineralisation as follows:

o Shallow, intermittent epithermal quartz veining (from the surface to 33m down the hole), within vuggy silica-pyrite alteration.

o 97m of breccia with up to 5% sulphides including visible chalcopyrite, sphalerite and galena (from 14.9m to 112m down the hole).

o Intermittent quartz-chalcopyrite-pyrite and hematite veins and breccia with disseminated chalcopyrite (112 to 150m).

o Chlorite-quartz-epidote alteration increasing in intensity to 190m with occasional quartz- chalcopyrite-hematite veins.

- New surface outcrops of epithermal quartz-hematite veins confirms potential for shallow gold-silver mineralisation at the Kadungle Project.

- Cash of $4.1 million at quarter end.

Tennant Creek gold-copper project

1. Edna Beryl

Emmerson Resources Limited ("Emmerson") (googlechartASX:ERM) is pleased to announce that final approvals have been received from the Northern Territory Government for production to commence at the Edna Beryl Gold Mine (see Figure 1 in the link below). This will be the first new gold mine in Tennant Creek for over a decade and is testament to the Government's recent announcements on revitalising the region as a major mining centre. The Government is also conducting a feasibility study into establishing a Central Milling Facility - which is expected to stimulate additional mine development and exploration in the region.

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 development. A reverse circulation drill program commenced during the quarter and will test a number of drill targets that were generated from the application of an ultra-high resolution ground gravity survey completed earlier this year. In addition, three deep diamond drill holes aim to test the continuity of the ironstones and chlorite alteration some 350m below the surface.

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.

Development drives have intersected visible gold on two levels and 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.

2. Rover Project

Emmerson drafted and submitted an Application for the NT's CORE (Creating Opportunities for Resource Exploration) initiative which is designed to maximise opportunities for the exploration, discovery and development of new mineral and petroleum resources. The application was submitted on 26 April 2017, and Emmerson was successfully awarded $100,000 funding towards the proposed survey on 1 June 2017.

The application was for a program of 3D IP geophysics over a number of gold-copper targets within the Rover Mineral Field. The cover depth at Rover has historically been a major constraint in undertaking detailed exploration, which if analogous to the well explored Tennant Creek Mineral Field to the north, should yield multiple deposits. The survey aims to provide further geoscientific data to de-risk target generation through providing subsurface information on the depth of the cover, the unconformity between the Wiso Basin and Warramunga Formation and pinpointing sulphide rich ironstones.

The survey will be undertaken in two stages consisting of an initial 'Proof of Concept' over the known Rover 4 (R4) prospect and if positive, be followed by the next stage aimed at testing an inferred, metal fertile corridor that also hosts Rover 11, 12, 14 and 16. The survey is scheduled to commence in mid-July and be completed by mid-August.

The inclusion of this project under the Tennant Creek Mineral Field Earn-in and JV with Evolution Mining is further testament to the calibre and potential of this new acquisition. It not only provides funding by EVN toward the initial earn-in but positions ERM as the major player in one of Australia's highest grade goldfields.

3. Black Snake

A small program of pre-development RC drilling has confirmed the shallow, high-grade nature of the gold mineralisation (see Figures 5 & 6, Tables 4 - 7 in the link below). Samples from this drilling will now be composited and sent for metallurgical, ore and waste characterisation.

The Black Snake mineralisation is interpreted to strike East-North-East within a vertical dipping shear zone, and where gold occurs within hematite shale and veins that have yet to be closed off by drilling (see Figures 5 & 6 in the link below). The high-grade gold mineralisation at Black Snake is very typical of the Tennant Creek Mineral Field and is similar to Edna Beryl in being hematite dominant and thus gone undetected by previous explorers.

Permitting of the Black Snake Mine ahead of development is well advanced, with the Mine Management Plan and Heritage survey completed.

4. Other Small Mines

Planning and permitting is underway for mine development at Malbec and Chariot. It is envisaged that the development of these small mines will be via a similar Tribute style agreement to Edna Beryl however the commercial arrangements are yet to be finalised. This style of agreement has the following advantages:

- A risk-free, near term income stream from Emmerson's non-core assets via a royalty agreement (until EVN completes its earn-in, ERM receives 100% of its share flowing from this agreement).

- Future access to refurbished underground workings for near mine exploration.

- The opportunity to monetise a pipeline of non-core assets within Emmerson's extensive tenement holdings but utilising a dedicated independent small mines company.

5. September Quarter Activities for Tennant Creek and Rover Projects

The following activities are planned for the September quarter:

- Additional drilling at Edna Beryl, outside of the small mines envelope to test for extensions to the high grade gold zones intersected to date and regional tests of targets generated from the gravity survey.

- If results of the orientation, ultra-high resolution gravity survey at Edna Beryl are successful, then extensions of this survey will be undertaken to map out further hematite ironstones in fertile structural locations.

- Execute the 3D Deep IP survey at the Rover Joint Venture.

- Drill-Target delineation at the Rover Joint Venture, from the IP survey and also from the completed geological review which identified some outstanding targets from previous exploration work done by Andromeda (formerly Adelaide Resources).

- Continuation of mining within the Edna Beryl Tribute area and identification of processing options

- Continuation of the planning, permitting and approval process for the additional small mines Exploration remains fully funded under the $15M earn-in JV with Evolution.

New South Wales gold-copper projects

1. NSW General

Emmerson is pleased to announce the continuation of exploration over four of our NSW projects (see Figure 7 in the link below). These projects were generated from the application of proprietary, predictive 2D and 3D targeting models - developed in conjunction with our strategic alliance partner Kenex Limited. This alliance aims to greatly increase the success of predicting the next discoveries in NSW through identifying independent geological attributes that are highly correlated with mineralisation. Note: Kenex can earn up to a 10% interest in any tenements acquired upon achieving certain predetermined milestones (this does not apply to the Kadungle project).

Landowner/stakeholder engagement commenced over prioritised projects ahead of field work in EL's 8464 (Fifield) and 8465 (Temora) with early success in both verbal and signed access agreements, ahead of field mapping, sampling and rock chipping.

Exploration on our NSW projects is fully funded by Emmerson and at the appropriate stage, a suitable JV partner may be sought.

2. Kadungle Project

Emmerson's first drill hole at Kadungle in NSW (see Figures 8 & 9 in the link below) has intersected visible sulphides within an extensive zone of alteration. This drill hole supports the previous historical drilling where high-level epithermal veins were intersected with best assays of 12m at 7.73 g/t (KDD002) and 3m at 7.14 g/t Au (KRC019) (see Figures 8 and 9 in the link below). Similarly, deeper disseminated and veined copper-gold produced intersections of 37m at 0.23% copper including 6m at 1.1% copper (KDD013) and 154m at 0.12% copper and 0.37g/t gold (KRC019) (ASX- 4 October 2016).

This recent drill hole not only extends the known mineralisation but points to the potential for both high level (shallow) epithermal gold-silver and deeper porphyry copper-gold mineralisation. The alteration of upper level quartz-pyrite-hematite grading to deeper chlorite-epidote-quartz is consistent with this interpretation (see Figure 9 in the link below). Moreover, the intersection of mineralised hydrothermal breccia which cuts the volcanic breccia/diatreme (see Figure 8 in the link below); both containing disseminated chalcopyrite (assays pending) is very positive (see Figure 10 in the link below). In terms of scale, the discovery of further hematite bearing epithermal quartz veins, some 2.5 kms north at the Trig prospect provides some indication that this is a large mineralised system (see Figures 1 and 5 in the link below). ). Work is already underway to better define the geology and alteration assemblages.

Note the Kadungle project falls under an option agreement with Aurelia Metals and provides the right for Emmerson to earn up to 80% through spending $0.5m over a five year period.

3. September Quarter Activities for NSW Projects

The following activities are planned for the September quarter:

- Geophysical Modelling of the detailed high-resolution magnetic surveys is well underway over Emmerson's NSW projects at EL's 8465 (Temora) and 8464 (Fifield).

- Design and implementation of a 3D IP geophysical survey at Kadungle ahead of further drilling.

- Continuing landholder/stakeholder engagement over prioritised projects ahead of field work


The Company has made the following announcements during the quarter.

23/06/2017 Production Commences at the Edna Beryl Gold Mine
20/06/2017 Drilling Underway on New Edna Beryl Targets
15/06/2017 Change in Substantial Holding
31/05/2017 Frist Drill Hole at Kadungle (NSW) Intersects Mineralisation
23/05/2017 Change of Directors Interest Notice
23/05/2017 Appendix 3B
17/05/2017 High Grade Gold and Small Mines Update
08/05/2017 Presentation RIU Sydney Resources Round-Up
04/05/2017 Questions and Answers with Rob Bills
28/04/2017 Quarterly Cashflow Report
28/04/2017 Quarterly Activities Report
04/04/2017 Change in Substantial Holding

About Evolution Mining (googlechartASX:EVN)

Evolution Mining is a leading, growth-focussed Australian gold miner. Evolution operates six wholly-owned mines - Cowal in New South Wales; Mt Carlton, Mt Rawdon, and Cracow, in Queensland; and Mungari and Edna May in Western Australia. In addition, Evolution holds an economic interest in the Ernest Henry copper-gold mine that will deliver 100% of future gold and 30% of future copper and silver produced from an agreed life of mine area.

Outside of the life of mine area Evolution will have a 49% interest in future copper, gold and silver production. In FY16 Evolution produced 803,476 ounces of gold at an AISC of A$1,014 per ounce generating an operating cash flow of A$628.4 million.

As a result of the acquisition of an economic interest in Ernest Henry in November 2016, Evolution revised its FY17 Group gold production guidance to 800,000 - 860,000 ounces at an AISC of A$900 - A$960 per ounce.

About Edna Beryl Mineralisation

Edna Beryl was discovered by prospectors in 1935 and mined underground in the 1940s and 1950s to a maximum depth of approximately 50 metres. Production up until 1952 was reportedly 2,700t of ore at an exceptional grade of 53g/t gold.

More recent exploration in the Edna Beryl area between1996 and 2000 by Giants Reef Mining (GRM) outlined additional high-grade gold mineralisation below the historic workings and resulted in an estimate being reported in 1998 by independent consultants in accordance with the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves (JORC: 1998). While this estimate does not meet the minimum reporting requirements for a Mineral Resource under the current 2012JORC Code, Emmerson considers the Edna Beryl mineralisation to constitute an Exploration Target of 5,000t to 10,000t at 20 to 30 g/t gold, however cautions that the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to estimate a Mineral Resource and that it is uncertain if further exploration will result in the estimation of a Mineral Resource.

About Andromeda Metals (googlechartASX:ADN)

Andromeda Metals is an Australian Securities Exchange listed company (code: ADN) focusing principally on mineral exploration for gold deposits, with copper and lithium secondary targets. Andromeda Metals currently has interests in 18 exploration licenses, covering 5,928 sq kms within South Australia, Queensland, Western Australia and the Northern Territory.

About Kenex

Kenex is a Wellington and West Australian based company which was established in 2002 to provide GIS and exploration services and advice for the exploration and mining industries in Australia and New Zealand. Over the last 10 years, Kenex have broadened their international experience through involvement with projects and clients in the Middle East, Africa, Scandinavia, Asia-Pacific and Latin America. Kenex is a group of highly motivated research professionals who have more than 85 years of combined experience and knowledge in exploration and mining, locally (New Zealand/Australia) and abroad, including the Solomon Islands, Africa, Papua New Guinea, Asia and Latin America. Kenex also have growing expertise in the marine minerals sector.

Kenex specialise in predictive modelling for minerals (2D and 3D) where it is at the forefront of providing these services to businesses to generate targets with the greatest geological potential in relation to the mineral system being evaluated. This delivers to our client's outcomes which can be used for a variety of purposes including regional evaluation of a mineral belt, identification of opportunities for acquisition, the tools for effective exploration work programme planning and in the case of predictive 3D modelling, drill hole targeting.

Under the alliance, Emmerson will hold the exclusive rights to any new targets identified for a period of 12 months and may, through a modest payment to Kenex, acquire full exclusivity. Kenex can earn up to a 10% interest in any tenements acquired as part of the alliance upon achieving certain predetermined milestones, with exploration costs shared proportionally.

About Aurelia (googlechartASX:AMI)

Aurelia Metals became a gold producer in 2014 and its flagship asset is the high-grade Hera gold-lead-zinc-silver mine in central NSW.

In FY 2016, the Hera mine produced 46,882 ounces of gold and 25,406 tonnes of lead-zinc concentrates from the processing of 308,118 tonnes of ore.

The Company is pursuing significant further improvements in the Hera operation including improved metal recoveries, increased throughput and operating cost reductions. Aurelia is also pursuing a near mine exploration programme, with a strong view on the capacity for Hera to evolve into a large scale, high-grade 'Cobar style' deposit.

Aurelia is also actively evaluating the evolving copper deposit at Nymagee with the potential that the Nymagee mineralisation may evolve into another 'Cobar Giant' similar to the world class CSA copper deposit located approximately 100km north-west along strike.

To view tables and figures, please visit:

About Emmerson Resources Limited


Emmerson Resources Limited (ASX:ERM) (FRA:42E) recently commenced exploration on new gold-copper projects in NSW, identified (with our strategic alliance partner Kenex Limited) from the application of 2D and 3D predictive targeting models – aimed at increasing the probability of discovery. The highly prospective Macquarie Arc in NSW hosts >80Mozs gold and >13Mt copper with these resources heavily weighted to areas of outcrop or limited cover. Emmerson's five exploration projects contain many attributes of the known deposits within the Macquarie Arc but remain under explored due to historical impediments, including an overlying cover (plus farmlands) and a lack of exploration focus. Kadungle is a JV with Aurelia Metals covering 43km2 adjacent to Emmerson's Fifield project.

In addition, Emmerson is exploring the Tennant Creek Mineral Field (TCMF), one of Australia's highest-grade gold and copper fields producing over 5.5 Mozs of gold and 470,000 tonnes of copper from deposits including Warrego, White Devil, Orlando, Gecko, Chariot and Golden Forty. These high-grade deposits are highly valuable exploration targets, and to date discoveries include high-grade gold at Edna Beryl and Mauretania, plus copper-gold at Goanna and Monitor. These are the first discoveries in the TCMF for over a decade.

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Investor Enquiries:
Mr. Rob Bills
Managing Director & Chief Executive Officer
Tel: +61-8-9381-7838

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