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Emmerson Resources to Retain Gold Projects in Restructure with Evolution Mining

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THE BOURSE WHISPERER: Emmerson Resources (ASX: ERM) revealed results of discussions on the future of the Tennant Creek Mineral Field (TCMF) JV with Evolution Mining (ASX: EVN).

Emmerson Resources said the discussions had resulted in a proposed new ownership structure that reflects the differing size and corporate objectives of the two companies.

Under the restructure, Emmerson is to retain a 100 per cent (as opposed to 35% under the current terms of the TCMF JV) of all the gold dominant assets, prospects and associated exploration ground.

Emmerson emphasised that the TCMF is one of Australia’s highest-grade goldfields and is where Emmerson (and partners) have made the first new discoveries for over a decade.

The company added that these discoveries have been underpinned by a substantial investment by Evolution in acquiring new data, along with the application of new exploration tools and directly leading to the discovery of a new generation of hematite hosted, high grade gold projects such as seen at Edna Beryl and Mauretania.

Evolution will take a 100 per cent holding in the tenements (or parts of them) that contain the Gecko, Goanna, and Orlando copper-gold prospects.

These comprise some six per cent of the entire TCMF land position and are predominantly copper rich but are considered to have potential for gold grades to increase at depth.

Further exploration of these prospects will require deep drilling and Evolution intends to test these prospects for potential new discoveries of scale at depth and along strike.

“Emmerson is very pleased with the outcome of these negotiations with our partner, Evolution Mining,” Emmerson Resources managing director Rob Bills said in the company’s announcement to the Australian Securities Exchange.

“This proposed restructure better aligns the assets with the respective companies.

“It provides Emmerson shareholders with near term, high margin gold assets and exploration ground that can be more easily developed within the constraints of the Emmerson balance sheet.

“Importantly, the investment in new data during the term of the JV has provided new insights into what we believe is a new generation of high grade, hematite hosted gold deposits.

“Directly leading to discoveries at Edna Beryl West, Mauretania and a string of promising drill intercepts that will now be followed up.

“Emmerson also look forward to accelerating the monetisation of our small mines portfolio given that we are now the 100 per cent owner.”

 

Website: www.emmersonresources.com.au

 

Emmerson Resources Encounters High-Grades on NSW and Tennant Creek Projects

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THE DRILL SERGEANT: Emmerson Resources (ASX: ERM) received interesting results from drilling at the company’s Kadungle gold-copper project in New South Wales.

Recently completed drilling at the Kadungle project identified potential for both deeper copper-gold and now, shallow epithermal gold at the Trig prospect.

The company indicated that assays are still pending, however construction of the drill access track at Trig revealed extensive boulders of epithermal quartz.

The last drill hole at Trig (drill hole TRC004) intersected multiple epithermal veins, which Emmerson interpreted to correspond with boulders at surface that contain extensive quartz-hematite veins.

Previous rock chip sampling at Trig returned highly anomalous gold geochemistry with up to 1.27 grams per tonne gold.

At the company’s Tennant Creek project, recent drilling at the Gecko-Goanna project has confirmed potential for non-ironstone hosted copper.

Better results included:

GRC1413
4 metres at 2.87 per cent copper from 122m, including 3m at 3.63 per cent copper;

plus, a deeper intersection of:
6m at 4 per cent copper from 137m, including 2m at 6.8 per cent copper.

GRC1416
5m at 1.36 per cent copper from 177m, including 1m at 4.7 per cent copper and 1m at 3.8 per cent copper.

The company claimed this to support previously announced mineralisation in drill hole GODD032 of 7m at 5.98 per cent copper and 3m at 4.75 per cent copper encountered by drilling in 2015.

Emmerson explained the funding for this recent drilling completes the Stage 1 Earn-in obligation from its Joint Venture partner, Evolution Mining (ASX: EVN).

Discussions are ongoing between the two companies regarding the future options for the Tennant Creek JV.

Emmerson said it was confident that these discussions will deliver a mutually attractive path forward for the project.

“Emmerson is extremely well positioned with commanding ground positions in New South Wales and Tennant Creek,” Emmerson Resources managing director Rob Bills said in the company’s announcement to the Australian Securities Exchange.

“This project portfolio is now diversified beyond Tennant Creek and attractive for development, either by Emmerson or third parties.

“We are confident that positive results across this portfolio will continue to build quality assets and consistency of news flow.

“Further, Emmerson is one of few junior companies building a revenue stream from small high-grade mines.

“Pleasingly the last round of drill results at Kadungle is consistent with the emergence of a large mineralised system that supports ongoing exploration for both shallow gold and deeper copper-gold.

“Assay results for the Trig drilling will be available toward the end of February as work continues both at Kadungle and across our other New South Wales projects.”

 

Website: www.emmersonresources.com.au