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Emmerson scores maiden resource in Tennant Creek, promising underground mining potential of high-grade gold

ASX News, Materials
ASX:ERM      MCAP $40.30M
06 May 2024 09:48 (AEDT)
Block of gold rock isolated on white

Source: Adobe Stock.

Gold and copper explorer Emmerson Resources Ltd (ASX: ERM) has reported a maiden resource estimate (MRE) of nearly 134,000 ounces for its Gold Forty deposit in the Northern Territory’s Tennant Creek, which contains a high-grade domain suggesting potential for underground mining.

The MRE for Golden Forty is reported at 935,000 tonnes at 4.5 grams per tonne for 133,900 ounces of gold.

High grades are a notable feature within this, with the deposit containing an indicated resource of 706,000 tonnes at 5.0 grams per tonne gold for 113,200 ounces, and an inferred resource of 228,700 tonnes at 2.8 grams per tonne for 20,700 ounces.

Emmerson has said the MRE is an important contribution to assessment of the deposit, which will now progress to development studies undertaken by joint venture partner Tennant Consolidated Mining Group (TCMG), which is focused on revitalising mining in the region.

The consistently high-grade nature of mineralisation at Gold Forty is revealed by a domain within the resource containing 77,000 ounces of gold – that is, 257,000 tonnes at 9.3 grams per tonne – with 73,000 ounces of this classified as indicated, and 4,000 ounces of inferred resource.

On this basis, Emmerson has suggested the potential for this mineralisation to be mined using underground mining.

Managing director Mark Dunbar said the company’s portfolio of high-grade resources was growing.

“The completion of the Golden Forty Mineral Resource Estimate is a very substantial step forward for the Tennant Creek Project as a whole, as it adds over 75 percent more high-grade gold ounces to the company’s inventory, which now stands at over 300,000oz of gold at 5.2 grams per tonne gold with the Indicated portion of the Mineral Resource now standing at over 256,000 ounces of gold at 6 grams per tonne,” he said.

“Importantly the Golden Forty resource is very robust with approximately 85 percent of the global resource classified as Indicated, which, given the high-grade, should allow a substantial amount of the resource to convert to an ore reserve, once additional development studies are completed.”

Emmerson Resources has been trading at 4.5c.

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