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Emmerson Resources Commences Production at Edna Beryl Gold Mine, Australia

Published: June 27, 2017 |

[Click image to enlarge]

Emmerson Resources Limited has received final approvals from the Northern Territory (NT) government for production to commence at the Edna Beryl Gold Mine in the NT.

The mine is within the Tennant Creek Mineral Field (TCMF) joint venture and is now the first producing asset in a strategy which aims to monetize a pipeline of small high-grade gold projects.

The first 600 tonnes of development ore averages circa 40 g/t gold.

Edna Beryl is the first new mine in the NT for over a decade and has the potential to be one of the highest grade gold mines in Australia.

ROB BILLS, MANAGING DIRECTOR, COMMENTED

“The commencement of production at Edna Beryl is a pivotal step since Emmerson began exploration in the Tennant Creek Mineral Field in 2008.

“It not only provides a revenue stream but establishes a template for unlocking value in many of our other projects contained within our extensive, 3,000 square kilometre tenement package.

“We believe this ‘tribute style of agreement’ maximizes value and mitigates risk whilst providing great insights for our near mine and regional exploration programs.

“As we know, small mines can often grow into big mines!”

MINING UNDER TRIBUTE AGREEMENT

Mining at Edna Beryl East is being undertaken by an operator specializing in small mines (the Edna Beryl Mining Company) under a tribute agreement.

The agreement relates to a 3D envelope around the shallow mineralization.

Drilling last year extended the mineralization beyond this 3D envelope, opening up the possibility of either expanding the current mining area or, if the next round of drilling is successful, contemplating a larger scale of development.

The tribute agreement with the Edna Beryl Mining Company provides Emmerson with a number of advantages:

•  A risk-free income stream from its non-core assets via a royalty agreement that is proportional to the final amount of extracted gold and Emmerson’s equity in the TCMF JV (which is currently 100 percent);

•  Future access to refurbished underground workings for near mine exploration; and

•  The opportunity to monetize other non-core assets within its extensive tenement holding, subject to formal agreements being executed.

BACKGROUND

Emmerson’s flagship project is its TCMF joint venture where all exploration is fully funded by the farm-in and joint venture with Evolution Mining .

Through expenditure of $15 million over three years, Evolution will earn a 65% interest (Stage 1 Farm-in) in Emmerson’s tenement holdings in the TCMF.

The TCMF is one of Australia’s highest grade gold and copper fields producing over 5.5 million gold ounces and 470,000 tonnes of copper from a variety of deposits including Gecko, Orlando, Warrego, White Devil, Chariot and Golden Forty.

All of these deposits are within Emmerson’s exploration and joint venture portfolio.

ANALYSIS

The approvals are valuable evidence supporting the government’s recently outlined initiatives to revitalize Tennant Creek and make it the ‘Mining and Services Center’ of the Northern Territory.

The government is conducting a feasibility study into establishing a central milling facility at Tennant Creek, which is expected to stimulate additional mine development and exploration in the region.

This is significant as further high-grade gold projects within Emmerson’s extensive tenement holdings are currently undergoing permitting and approval.

While production has commenced, drilling also continues to expand the Edna Beryl mineralization.

Emmerson has shown that it can deliver on its exploration and development processes and with a pipeline of mines already in the permitting process, the company is well positioned moving forward.

Source: (June 23, 2017) Proactive Investors


About Emmerson Resources
Emmerson Resources is focused on gold exploration in the Tennant Creek Mineral Field of Australia.

To stop by Emmerson’s website, CLICK HERE


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