Emmerson Resources Limited (ASX:ERM) has provided promising results from recent drilling in the New South Wales and the Northern Territory.
Importantly, Emmerson has outlined its strategy for 2018, and it is worth noting that the company is debt free, allowing it to continue with exploration and development programmes.
With a number of projects at various stages in the Northern Territory and New South Wales, as well as joint ventures and earn-in agreements, the strategy statement provides a useful insight.
Though significant emphasis was placed on the Edna Beryl Gold Project in 2017, 2018 is likely to see newsflow across all of the company's projects.
The results from the Kadungle Project in New South Wales are important as they represent the emergence of new gold-copper prospects in the Macquarie Arc region.
These complement the group’s exploration pursuits and continued production from the high-grade Edna Beryl Gold Mine.
Early stage results align with company strategy
A recently completed drilling campaign at Kadungle has identified the potential for both deeper copper-gold, and now, shallow epithermal gold at the Trig prospect.
Assays are pending, but the last drill hole at Trig intersected multiple epithermal veins which corresponded 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 g/t gold.
Earn-in terms met
This recent round of drilling is part of the next stage II earn-in of $200,000 for 80% equity of the project.
Elsewhere in New South Wales, the company is focusing on higher value metals of gold and copper, and a cobalt prospect has been identified within the nearby Fifield project.
Whilst at an early stage, rock chip sampling of up to 0.55% cobalt and 0.27% copper has prompted further investigation.
Further drilling success at Tennant Creek
The recent drilling at the Gecko-Goanna Project in the Northern Territory further confirms the potential for non-ironstone hosted copper.
Better results included 4 metres at 2.87% copper from 122 metres and 3 metres at 3.63% copper, plus a deeper intersection of 6 metres at 4% copper from 137 metres.
Evolution Mining completes earn-in conditions
Emmerson is now in discussions with Evolution regarding the future options for the Tennant Creek joint venture.
Management is confident that these discussions will deliver a mutually attractive path forward for the project.
The copper dominant Gecko-Goanna mineralisation stands in contrast to the high-grade gold deposits of the Tennant Creek Field.
Focus on Edna Beryl development
Emmerson recently announced first gold production from the processing of 1000 tonnes of ore from the development drive at the high-grade Edna Beryl gold mine.
Mining at Edna Beryl is via a Tribute Agreement with small mine specialist, the Edna Beryl Mining Company.
Emmerson’s share of the proceeds from Edna Beryl is proportional to the amount of gold extracted from the Tribute Area and its equity in the Tennant Creek joint venture.
Emmerson maintains its diversification with a variety of options in 2018
The near term focus is likely to be on Emmerson’s joint venture agreements and the projects that it prioritises.
Rob Bills, managing director, said: “Emmerson’s 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.
“Emmerson is one of few junior companies building a revenue stream from small high-grade mines.”