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Emmerson Resources intersects copper sulphides in Kiola drilling

Published: 11:26 25 Jun 2020 AEST

Emmerson Resources Ltd - Emmerson Resources intersects copper sulphides in Kiola drilling
Assay results are expected in mid-to-late July

Emmerson Resources Limited (ASX:ERM) has intersected visible copper sulphides in all holes during the first stage of diamond drilling at Kiola project within the prolific Lachlan Fold Belt of NSW.

Four holes for 1,130 metres have just been completed at Kiola, which is one of Emmerson's five projects in NSW.

New insights provided

Emmerson managing director Rob Bills said: “The first phase of drilling at Kiola has been highly successful in providing new insights into the subsurface geology of the 15 square kilometres Kiola Geochemical Zone (KGZ).

“We eagerly await the assay results which will guide further exploration.”

Assay results are expected in the second half of July which will inform an updated geological model and further refine the next drill campaign in the second half of 2020.

Drilling at Kiola is partly funded by the NSW Government’s New Frontiers Cooperative Drilling grant with the company to be reimbursed for 50% of its direct drilling costs following the completion of all associated reports.

Location of Emmerson’s projects in a prolific gold and copper-gold producing area of NSW.

Kadungle tenement agreement

The company has also reached a commercial agreement to recover the Kadungle tenement in NSW.

Emmerson was pursuing several avenues to restore its ownership of the tenement, which was formerly held by Emmerson subsidiary Lachlan Resources in a joint venture with Aurelia Metals Ltd (ASX:AMI).

New applicant, Bacchus Resources Pty Ltd, has agreed terms to restore full ownership, including the 15% ownership to Aurelia Metals.

As part of these negotiations with Bacchus Resources, Emmerson entered into a drilling agreement with AMWD, a drilling company associated with Bacchus, to undertake a minimum $200,000 drilling program at Kadungle.

In addition, AMWD will complete a further $1 million worth of drilling over three years on Emmerson’s tenements anywhere in Australia, providing AMWD meets certain criteria, including agreement around competitive drill rates, and professional/safe work practices.

Drilling at Kadungle is set to commence in late 2020 and is partly funded by the NSW New Frontiers Cooperative Drilling program grant from the NSW Government.

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