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Emmerson Resources Ltd

Emmerson Resources makes progress towards monetising Tennant Creek gold assets

The development of a modern, centralised processing facility at Warrego is the key to unlocking a portfolio of undeveloped gold assets.

project area
Emmerson’s vision is to establish an integrated exploration, mining and processing hub

Emmerson Resources Ltd (ASX:ERM) has received the final $300,000 payment from Territory Resources to conclude the sale and transfer of the Warrego Mill and Mining Lease at Tennant Creek in the Northern Territory.

The company had entered into a strategic alliance with Territory to build a central mill in Tennant Creek to support and monetise Emmerson’s gold mines and other third-party feed.

READ: Emmerson Resources signs deal to build processing facility for its small mines

Territory is progressing the re-establishment of the Warrego Mill and now plans to fast track the first stage refurbishment of the crushing, grinding and gravity circuits.

This follows the approval of the Mine Management Plan (MMP) by the NT Government and attainment of a financing facility.

Integrated exploration, mining, and processing hub

Emmerson managing director Rob Bills said: “The development of a modern, centralised processing facility at Warrego is the key to unlocking a portfolio of undeveloped gold assets in the Tennant Creek Mineral Field.

“The finalisation and transfer of the Warrego ML to Territory marks a major step forward for not only Emmerson shareholders, but all Tennant Creek stakeholders.

“It is a critical milestone towards realising Emmerson’s vision to establish an integrated exploration, mining, and processing hub.”

Gold royalties

Emmerson has now received royalty payments totalling $275,000 pertaining to the first ore parcel from the Edna Beryl Mine.

Although initially modest, this payment represents the beginning of a growing royalty stream for Emmerson which it intends to replicate across multiple mines in the Tennant Creek Mineral Field.

Importantly, the royalty model removes the high-risk transition from discovery to mining and processing.

 

The royalty model also allows Emmerson to concentrate on its core business of discovering new deposits through deploying new exploration technologies.

The discovery and recent diamond drill program at Emmerson’s Mauretania project, which intersected 15 metres at 45 g/t gold including 4 metres at 158 g/t gold is an example of this approach.

Quick facts: Emmerson Resources Ltd

Price: $0.13

Market: ASX
Market Cap: $55.23 m
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Emmerson Resources finalises sale of Warrego Mill

Emmerson Resources (ASX:ERM) managing director Rob Bills updates Proactive Investors finalising the sale of the Warrego Mill in the Northern Territory.   Final payment from Territory Resources of $300,000 wraps up the sale and transfer of the mill and mining...

on 4/7/19

2 min read