Quarterly Activities Report
Perth, Jan 17, 2018 AEST (ABN Newswire) - Emmerson Resources Limited (
ASX:ERM) (EMMRF:OTCMKTS) provides the Quarterly Activities Report for the period ending 31 December, 2017.
Highlights
- First gold pour from the Edna Beryl Tribute area completed in late December
- Drilling at Kadungle NSW is currently underway with visible copper sulphides intersected in the first two drill holes at the Mt Leadley prospect
- Completed earn-in of 60% over the Kadungle tenments
- Completed a ~2,500m drill program to test for extensions to the previously discovered, high grade Gecko-Goanna copper-gold mineralisation at Tennant Creek in the NT
- Emmerson remains well funded on completion of a highly successful capital raising of ~$2m to mainly Instutional Investors. Now with available cash of $5.4m
New South Wales gold-copper projects (see figure 1 in link below)
1. Kadungle Project
Emmerson's first drill hole at Kadungle in NSW intersected high level epithermal gold-silver mineralisation and deeper porphyry copper-gold within a very 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 7.7g/t (drill hole KDD002). 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) (see figure 2, tables 1,2,& 4 in link below).
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 over a large area. The alteration of upper level quartz-pyrite-hematite grading to chlorite-epidote-quartz and deeper Kfeldspar- chlorite-hematite is consistent with a large underlying porphyry copper-gold system (see figure 3 in link below). Moreover, the discovery of further mineralised, epithermal quartz veins (up to 1.27g/t) some 2km east at the Trig prospect are likely manifestations of the peripheral gold bearing, epithermal fluids (see table 3 in link below).
A large geophysical survey completed in October covers the +1km diameter zone of magnetite destruction (believed to represent the underlying copper-gold system) plus some newly discovered epithermal veins, some 2km to the north (see figure 2 in link below). Three diamond drill holes were completed just prior to Christmas to test geophysical anomalies at Mt Leadley. Visible sulphides along with extensive alteration announced in December is highly encouraging (ASX 13 December 2017). Drilling has just resumed at the Trig Prospect (post quarter) with assays expected in February.
Emmerson has notified Aurelia that it has met all terms of the stage 1 earn-in including minimum expenditures of $300,000 to acquire 60% of the project. Emmerson is now completing the stage 2 earn-in of $200,000 to earn a total of 80% of the entire project.
2 Other NSW Projects
Good progress continues across the other projects including Fifield which is adjacent to Kadungle. Ground reconnaissance and sampling has now been completed at Fifield, Wellington and the Temora/Sebastopol projects. These large project areas were generated in prospective, metal endowed corridors from proprietary predictive 2 and 3D targeting models back in 2015 - these models aim to increase the probability of discovering deposits of both epithermal gold and porphyry copper-gold.
Importantly, this counter cyclic ground acquisition has now placed Emmerson in a strong position given the recent uptake by other companies of the surrounding tenements (see figure 4 in link below).
Note the Parkes EL(8466) has been relinquished due to ground access issues and other higher priority targets.
Tennant Creek gold-copper project (see figure 5 in link below)
1. Gecko - Goanna
A ~2,500m drill program at Emmerson's Gecko-Goanna-Monitor discovery was completed in December and was aimed to extend the high grade copper mineralisation (see figure 6 and table 5 in link below). This followed some highly encouraging copper results from drill hole GODD032 which intersected 7m at 5.98% copper including 3m at 10.4% copper from 123m down the hole (ASX 19/08/15). Another zone of 3m at 4.75% copper including 1m at 10.6% copper from 162m suggests significant potential exists for high grade copper, similar to what has been discovered at Goanna. Assay results are expected in late January to early February.
2. Edna Beryl Small Mine
Edna Beryl is the first in our small mine portfolio to be developed under a "Tribute style Agreement" with the Edna Beryl Mining Company (EBMC) (see figure 7 in link below). EBMC are a specialist operator in small mines and have already developed much of the Tribute Area ahead of mining in early 2018. Approximately 1200t of development ore averaging between 30-40g/t gold has been stockpiled awaiting treatment. Processing of the gold ore is the responsibility of the EBMC and according to their plan, will be treated on an interim basis at the local stamp battery. This interim plan will provide cash to fund the purchase of a small modular mill with crushing/grinding/gravity circuits to process the remainder of the gold ore.
Emmerson receive a "risk free" income stream 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%).
Planning is underway for the development of an underground exploration drive from the current Edna Beryl mine across to the recently discovered Edna Beryl West mineralisation. This will enable more effective and cheaper drilling of the greater Edna Beryl mineralisation from underground, consistent with resource delineation at many of the historic deposits within the Tennant Creek Mineral Field.
Black Snake - next Small Mines Opportunity
Permitting of the Black Snake Mine which is similar in grade and scale to Edna Beryl is well advanced, with the Mining Management Plan currently being assessed for approval by the NT Department of Primary Industry and Resources. The Heritage survey has been completed.
3. TC8 Mill Site
During the quarter Emmerson continued planning, permitting and approvals on behalf of the Edna Beryl Mining Company (EBMC) for the construction of a small modular gold treatment mill at Emmerson's TC8 site. Historically TC8 contained a small processing plant and thus has excellent infrastructure which includes access to power, water, tailings facilities, haul roads, buildings and other infrastructure. It is also centred within the other future small mines projects.
4. Other Small Mines
Planning and permitting continues for further small mine developments, utilising a similar model to that developed with the Edna Beryl Mining Company. This style of agreement has the following advantages:
- A near risk-free, 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).
- Access to refurbished underground workings for near mine exploration and metallurgical testing.
- Allows Emmerson to maintain a focus on its core objective of discovering major deposits of copper and gold.
Other Business Activities
Emmerson continues to monitor and review potential new projects from third parties. To date no such projects have been sufficiently compelling to displace our internally generated projects. To this end we have recently applied for a large tenement in northern NSW (ELA 5621 Nyngan, see figure 1 in link below). This tenement is undercover but from previous exploration, contains some highly encouraging attributes suggesting a continuation of the highly prospective Macquarie Arc to the north. These Macquarie Arc rocks are the host to all of the major deposits in NSW and this new tenement presents an excellent opportunity to hold 100% ownership in a large area highly prospective for gold and copper.
March Quarter Activities for NSW Projects
The following activities are planned for the March quarter:
- Assessment of drill results from Kadungle and design of the next drill campaign pending positive assay results
- Ongoing exploration over the Fifield, Wellington and Temora/Sebastopol projects
March Quarter Activities for Tennant Creek
The following activities are planned for the March quarter:
- Commencement of full scale mining within the Edna Beryl Tribute area
- Continuation of the planning, permitting and approval process for the additional small mines
- Continuation of the permitting and approval for the modular mill at TC8
- Finalisation of the planning and commercial terms for the underground exploration drive and drill program at Edna Beryl
About Tennant Creek and Emmerson Resources
The Tennant Creek Mineral Field (TCMF) is one of Australia's highest grade gold and copper fields producing over 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. These deposits are considered to be highly valuable exploration targets and, utilising modern exploration techniques, Emmerson has been successful in discovering copper and gold mineralisation at Goanna and Monitor in late 2011, the first discoveries in the TCMF for over a decade. To date, Emmerson has only covered 5.5% of the total tenement package (in area) with these innovative exploration techniques and is confident that, with further exploration, more such discoveries will be made.
Emmerson holds 2,800km2 of ground in the TCMF, owns the only gold mill in the region and holds a substantial geological database plus extensive infrastructure and equipment. Emmerson has consolidated 95% of the highly prospective TCMF where only 8% of the historical drilling has penetrated below 150m.
Emmerson is led by a board and management group of experienced Australian mining executives including former MIM and WMC mining executive Andrew McIlwain as non-executive chairman, and former senior BHP Billiton and WMC executive Rob Bills as Managing Director and CEO.
Pursuant to the Farm-in agreement entered into with Evolution Mining Limited (Evolution) on 11 June 2014, Evolution is continuing to sole fund exploration expenditure of $15 million by 31 December 2017 to earn a 65% interest (Stage 1 Farm-in) in Emmerson's tenement holdings in the TCMF. An option to spend a further $10 million minimum, sole funded by Evolution over two years following the Stage 1 Farm-in, would enable Evolution to earn an additional 10% (Stage 2 Farm-in) of the tenement holdings. Emmerson is acting as manager during the Stage 1 Farm-in and is receiving a management fee during this period. Exploration expenditure attributable to the Stage 1 Farm-in to date is $15 million.
About Aurelia (ASX:AMI)
Aurelia Metals Limited is an Australian gold, silver, lead and zinc mining and exploration company. The Company operates the wholly-owned Hera gold and base metal mine, in Central West New South Wales and has a key development opportunity in the Nymagee Copper, lead, zinc project, some 5 km north of Hera. In FY17, the Company produced 45,679 ounces of gold and 32,308 tonnes of lead-zinc concentrate.
About Evolution Mining (ASX:EVN)
Evolution Mining is a leading, growth-focussed Australian gold miner. Evolution operates five wholly-owned mines - Cowal in New South Wales; Mt Carlton, Mt Rawdon, and Cracow in Queensland. 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.
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 2012 JORC 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.
To view the full report with tables and figures, please visit:
http://abnnewswire.net/lnk/GDZ45D91
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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