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Emmerson Resources completes second tranche of placement to strategic partner

Mill head grade from first ore parcel at Edna Beryl averaged about 30 g/t gold – making it one of Australia’s highest-grade producers.
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First diamond hole at the Mauretania prospect has intersected hematite ironstone

Emmerson Resources Ltd (ASX:ERM) has completed the second $1 million tranche of the two-tranche, $2 million placement at 10.35 cents a share to Territory Resources.

Managing director Rob Bills said: “The completion of the second tranche placement at a significant premium to our current share price is a strong sign of continued support from our strategic partner Territory Resources.

“This now completes the conditions subsequent to the previously announced Exploration and Small Mines Joint Venture over the Southern Project area of Emmerson’s Tennant Creek project.

READ: Emmerson Resources forms transformational alliance, raises cash at 56% premium

“Toll treatment of the first 3,000 tonnes of ore from the Edna Beryl mine is nearing completion and Emmerson continues to receive a 12% royalty on all gold produced from the mining and processing funded by Territory.

“The processing of the gravity concentrate component from toll treating of the first parcel of ore from Edna Beryl is now underway and is expected to generate the majority of revenue from this campaign.

“Proceeds from the first royalty payment from CIL recovery are being used to undertake the first diamond drilling at our exciting 100% owned Mauretania discovery, and to fund further geophysical programs in the Tennant Creek Mineral Field.”

Drilling underway at Mauretania

Diamond drilling is underway at Emmerson’s Mauretania project in the Northern Project Area at Tennant Creek.

The first drill hole has intersected brecciated hematite ironstone in the oxide zone, which typically hosts high-grade gold.

Emmerson’s 100% owned tenements (blue), recently completed drill program targets (yellow dots) and February 2019 results 

Three deep holes at Mauretania, designed to test the upper oxide and lower primary gold zones are being completed in the current program with assay results expected in the current June quarter.

Exploration at Mauretania will also trial a relatively new geophysical technique (Sub-Audi Magnetics or SAM) to map the extent of the host to the mineralisation, which consists of sheared hematite and magnetite ironstones

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