Emmerson Resources Limited (ASX:ERM) has secured a drilling co-funding grant from the NSW Government for its Kiola and Kadungle projects.
Kadungle lies within the Narromine Belt where previous drilling has intersected high-grade gold and copper.
Location of Emmerson’s NSW Projects. The background is the regional magnetic image, with orange indicating the various segments of the Macquarie Arc.
Emmerson managing director Rob Bills said: “Emmerson is well placed to emerge in a very strong position once this COVID-19 crisis allows field activities to recommence.
“We have exceptional ground positions in one of Australia’s highest-grade gold provinces at Tennant Creek plus a suite of early mover assets in some of the hottest exploration districts in NSW.
“The announcement by the NSW Government that Emmerson has secured two Cooperative Drilling Grants has not only reduced our exploration costs across both our Kiola and Kadungle projects but is also testament to the potential of these projects to generate new copper-gold discoveries.
“Additionally, we have prudently implemented cost saving measures across our business to help weather the challenging economic conditions we currently face.”
The New Frontiers Cooperative Drilling grants program by the NSW Government encourages private exploration drilling in the search of high value mineral deposits in prospective underexplored areas of NSW and where companies are using the latest technology to identify new deposits.
The $2 million program is a co-funded initiative where the NSW Government provides up to 50% of direct drilling costs for individual projects, capped at $200,000.
Emmerson’s Kiola project is a highly ranked, early stage gold-copper project centred on the 15 square kilometres Kiola Geochemical Zone (KGZ) within the highly prospective Molong Belt.
It encompasses favourable Ordovician age rocks that display anomalously high gold and copper geochemistry.
Most of the targets in Emmerson’s forthcoming drill program occur within 400 metres of the surface and will be the deepest drill holes in the history of the project.
Emmerson’s proposed drill program will consist of a minimum of 2,000 metres of diamond drilling across five holes – with an ability to extend the holes based on visual results.
The NSW drilling grant will now reduce the direct drilling costs at Kiola by 50% or $83,000.
Kadungle sits in the highly prospective Narromine Volcanic Belt within the Lachlan Transfer Zone that hosts the Northparkes gold-copper deposit.
Some of the historical drilling at Kadungle intersected epithermal gold-silver and porphyry copper-gold with significant assays including 12 metres at 7.7 g/t gold and 0.12% copper from 62 metres.
Emmerson’s proposed drill program consists of a minimum of 1,700 metres of diamond and reverse circulation drilling across two deep holes – with an ability to extend the holes based on visual results.
The NSW drilling grant will now reduce the company’s direct drilling costs at Kadungle by 50% or about $101,000.