The company is expecting a busy year with assay results from recent and ongoing drilling expected in coming weeks along with a decision on the location and size of a new mill in Tennant Creek and continuation of drilling at a number of projects.
In an interview with Proactive's Andrew Scott, Emmerson managing director Rob Bills said the company had some really exciting programs going forward for 2021.
Emmerson is particularly excited with ongoing diamond drilling at the high-grade Mauretania gold discovery within the Tennant Creek JV Project in the Northern Territory.
The company has a pipeline of targets for drilling in early 2021 after the northern wet season, including drilling at some of its 100%-owned projects, outside the Tennant Consolidated Mining Group (TCMG) joint venture area.
This pipeline includes the Edna Beryl gold and Jasper Hills gold-copper-cobalt prospects in the Southern Project Area, plus further targets in the Northern Project Area (NPA).
Emmerson new strategic alliance with TCMG includes a $2 million placement to TCMG at a substantial premium to market while a decision by TCMG on the location and size of the new mill in Tennant Creek is awaited.
The JV is also progressing mine development schedules under the Small Mines Joint Venture (SMJV) program with this including detailed mining and processing schedules.
In the SMJV, Emmerson will have a free carried 6% gross revenue royalty from gold production from small mines (resource 250,000 ounces gold equivalent).
The company also plans to complete the delineation of an approximate 20,000 square kilometres area of mutual interest centred on Tennant Creek aimed at future exploration or acquisitions.
A diamond drilling program initiated by the company in late November 2020 to better delineate the grade and scale of the known ‘bonanza’ high-grade gold zone at Mauretania, will continue in 2021.
This program comprises the first activity funded through the alliance with TCMG and managed by Emmerson, and the company is expecting assay results from the program to be available in the coming weeks.
Bills said: “We have got Mauretania assays results coming out soon … they are on high priority and we could probably see them in the first week of February.
“We will also have the continuation of Mauretania drilling that is likely to be the first project to be developed under the Small Mines Joint Venture.
He said funding for the proposed drilling program would be provided by TMCG. “There will be more drilling there under the earnings and joint venture, and the total funding will be around $5.5 million.”
Jasper Hills agreement
Emmerson has entered into a JV agreement with the Marnturla Aboriginal Corporation (MAC), which acts on behalf of the custodians of the land that contains the Jasper Hills prospect.
This agreement not only opens the entire Jasper Hills areas to exploration – an area that has seen no modern exploration - but also paves the way to unlocking further such opportunities within the extensive tenement holdings.
Bills said: “We are lining up drilling for Jasper Hills with the traditional owners that will be subject to receiving variation agreement from the Aboriginal Areas Protection Authority (AAPA).”
Lachlan Fold Belt projects
The company also progressed work at its projects in the Macquarie Arc of the Lachlan Fold Belt of Central West NSW during the December quarter as it seeks large copper-gold porphyry deposits.
Recent work at Kadungle has confirmed that the likely source of the gold and copper mineralisation at surface and in historic drilling is centred on the Mt Leadley and Mt Leadley South prospects.
The first deep diamond drill hole has been completed to a depth of 952 metres at Mt Leadley and the second diamond drill hole at Mt Leadley South started in early January 2021 is anticipated to be completed by the end of the month.
Both drill holes are partly funded by a $100,000 grant from the NSW New Frontiers Cooperative Drilling program plus 50% funded under a strategic alliance with Longreach Mineral Exploration.
Kiola is another of Emmerson’s five early-stage copper-gold projects in the Molong geological belt of the Macquarie Arc.
First pass diamond drilling within the prospective 15 square Kiola Geochemical Zone has confirmed the potential for further gold and base metals at the Nasdaq skarn and also the possibility of deeper copper-gold associated with an underlying porphyry system.
A recently completed 3D MIMDAS geophysical survey is being processed, with initial results highly encouraging in constructing a 3D model ahead of further drilling in 2021.
Emmerson also has an AGM scheduled on January 29, 2021, at which it will summarise its 2020 achievements and outline 2021 goals.