The first rig will target high-grade gold in the Northern Project Area (NPA) and the second rig will target extensions to gold at small mines in the Southern Project Area (SPA).
Notably, drilling within the SPA will be funded by Territory Resources Ltd (ASX:TTY) under the earn-in joint venture agreement.
Emmerson’s managing director Rob Bills said: “The recently announced Strategic Alliance with Territory Resources (TTY) provides a clear path to development and production for both new and existing gold resources.
“TTY’s mining capability plus their recent purchase of the Warrego Mill provides a unique opportunity to now monetise any assets in the Tennant Creek Mineral Field.
Bills added: “In the Northern Project Area (NPA), Emmerson funds the exploration whilst retaining complete control over the future of any new or existing discoveries.
“However, upon negotiating favourable commercial terms, any discovery can be added to the Mining JV with Territory Resources.
TTY to contribute up to $5 million
“Exploration in the Southern Project Area(SPA) whilst managed and operated by Emmerson, is funded by TTY as part of their $5 million earn-in under the Exploration JV.
“Both JV’s provide Emmerson shareholders with a low-risk pathway to commercial production and importantly, will generate funding for ongoing exploration programs in the Northern Territory and New South Wales.
Tennant Creek backed by NT government as emerging mining region
‘’This Strategic Alliance will see the re-establishment of Tennant Creek as a fully integrated exploration, mining and processing hub – thus realising Emmerson’s long-held vision and that of the NT Government.
“Construction work on this important regional facility has commenced with first production scheduled for early 2019, subject to government approvals.”