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Emmerson Resources to achieve first commercial gold returns from Tennant Creek field

Published: 11:18 12 Dec 2018 AEDT

Loading ore into trucks at Edna Beryl
Alliance partner Territory Resources loads the first Edna Beryl ore

Emmerson Resources Limited (ASX:ERM) has achieved a major milestone with first ore being trucked from Edna Beryl mine in the Northern Territory for toll treating at Cloncurry in northwest Queensland.

This will represent the first commercial production from the explorer’s portfolio in the Tennant Creek Mineral Field.

Strategic alliance partner Territory Resources Ltd, which recently acquired Edna Beryl Mining Company (EBMC), is mining ore, trucking it to Cloncurry and processing it, with Emmerson retaining 12% of the gold produced.

Emmerson’s managing director Rob Bills told Proactive Investors’ Stocktube service that it was a “very remarkable day” for the company.

“We have aimed to get to the production stage as soon as possible so this arrangement short-circuits the process and enables us to get early cash flow.

“Edna Beryl is the first of our small mines and we get 12% of the gold produced out of that mill.

“We do not pay for any of the mining, processing or transport, so it doesn’t really matter where it gets processed.”

Similar template for other small mines

It is a similar template for the other small mines within the Southern Project Area that form the strategic alliance with Territory.

“We get 12% of the gold, 6% of the gold or a profit share-type basis and Territory does the mining and processing,” Bills said.

Expansion plans

The managing director told Stocktube that the alliance partners were looking at expanding Edna Beryl with an exploration drive and more drilling expected to form part of this work.

“In terms of the other small mines, at this stage, it looks like Black Snake and maybe Chariot will be the next mines,” he said.

“This will be determined by a mine schedule which Territory is doing a lot of work on, while the permitting process is being progressed by the Northern Territory Government.”

Mill refurbishment

While the trucking and toll treating process will provide early cash flow, Territory is continuing with refurbishment of the Warrego Mill which will service future production from the mineral field.

Bills said that the schedule for this work had been pushed back a little. “It now looks like it will be April or May next year when that task is complete and ready for commissioning.”

READ: Emmerson Resources builds strategic alliance with Territory Resources through sale

Emmerson’s managing director said that the benefits of the strategic alliance were that Emmerson had the exploration expertise while Territory had the mining and milling capability.

“This will enable us to work together to unlock all of these stranded gold assets.”

Emmerson has retained 100% of the remaining 75% of the Tennant Creek Mineral Field, including the recent discovery at Mauretania.

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