Emerson Resources (ASX:ERM) has announced that its joint venture partner, Tennant Consolidated Mining Group, has started construction of the Nobles CIL gold processing facility at Tennant Creek.
The company’s share price shot up 23% today to 5.3 cents after it said the facility was on track for completion and production in 2025.
Tennant Mining’s conventional 840Ktpa CIL gold processing facility is being relocated from Cloncurry in Queensland and constructed at its Nobles project area ~14 kilometres southeast of Tennant Creek in the Northern Territory where it is expected to generate about 80 jobs during construction and more than 160 jobs after operations ramp up.
Tennant Mining plans to complete construction and commissioning of its facility in the second quarter of 2025, with commercial production to follow in the third quarter of 2025.
Tennant Mining will initially focus on processing existing stockpiles and tailings at its Nobles open pit mining complex, before developing other open cut and underground mines in the Tennant Creek Mineral Field including:
- Tennant Mining’s Juno, Rising Sun, Weabers Find and Warrego project areas; and
- Emmerson-Tennant Mining JV areas including the Black Snake, Chariot, Golden Forty, Mauretania, Eldorado, Marathon-Troy and White Devil deposits as well as any additional discoveries from ongoing exploration efforts.
- Emmerson will receive a 6% gross production royalty on any gold produced from the Joint Venture tenements
The JV partners’ ongoing exploration programs have been designed to extend the life of mining operation
Emmerson’s Chairman, Andrew Mcllwain commented: “Emmerson is pleased to announce that its Joint Venture partner, Tennant Mining, has commenced construction of the Nobles CIL gold processing facility.
“To have progressed through the study, development and financing phases and now into construction in under four years is a credit to the Tennant Mining team.
“Tennant Mining’s central processing facility is the long-awaited key to unlocking the development of resources and restarting larger scale mining production across the high-grade Tennant Creek Mineral Field. As always envisaged, the future restart of gold production from Emmerson’s assets provides a low-risk return for Emmerson’s shareholders through the 6% gross production royalty payable on gold produced.
“Emmerson looks forward to continuing our partnership with Tennant Mining to undertake further exploration, additional studies, development and production from the Emmerson-Tennant Mining Joint Venture tenements.
“Royalties from the Joint Venture tenements, along with any minimum production payments Emmerson may be entitled to under the Joint Venture agreements, should result in a substantial low risk return for Emmerson.
“With current cash reserves of approximately $3.2 million and Tennant Mining needing to fully fund a further $3.8 million of exploration to complete their joint venture earn-in commitment over the next two years, Emmerson is in a very strong position to continue exploration on the Emmerson-Tennant Mining Joint Venture tenements as well as Emmerson’s 100% owned Tennant Creek and New South Wales exploration projects.”
Tennant Mining’s Managing Director, Peter Main commented: “Commencing development of Tennant Mining’s fully funded Nobles Gold Project is a major milestone for the company and all stakeholders who have toiled hard over the last four years. It is exciting to see the revival of one of Australia’s historically highest grade gold provinces and more importantly the resurgence of commercial scale gold mining in Tennant Creek after almost two decades.”