Emmerson Resources confirms construction underway at Nobles gold processing facility
Emmerson Resources (ASX: ERM) has confirmed that construction has begun at the Nobles carbon-in-leach (CIL) gold processing facility in the Northern Territory.
The company’s joint venture (JV) partner Tennant Consolidated Mining Group is relocating the conventional 840,000 tonnes per annum facility from Cloncurry in Queensland to be constructed at the Nobles project area near Tennant Creek.
Construction and commissioning of the CIL facility are expected to be completed in the second quarter of 2025, with production scheduled to occur in the third quarter.
Stockpile focus
Tennant Mining will initially focus on processing existing stockpiles and tailings at the Nobles open-pit mining complex before developing other open-cut and underground mines in the Tennant Creek mineral field.
Potential development targets include Tennant Mining’s Juno, Rising Sun, Weabers Find and Warrego project areas, along with a number of Emmerson-Tennant Mining JV projects including Black Snake, Marathon-Troy and White Devil.
Emmerson chair Andrew McIlwain said the company will receive a 6% gross production royalty on any gold produced from the JV tenements, which along with any minimum production payments under the JV agreement should result in a substantial low-risk return.
‘Long-awaited key’
“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,” Mr McIlwain said.
“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.”
Emmerson has current cash reserves of approximately $3.2 million, putting it in a strong position to continue exploration on the JV tenements as well as its 100%-owned Tennant Creek and other exploration projects.
Strategic alliance
In recent years, Emmerson and Tennant Mining have entered into two earn-in to exploration JVs over the Northern and Southern project areas.
The two companies have also collaborated on select projects within the overall project area covered by two small mine joint ventures (SMJVs).
The SMJVs are 100% controlled, funded, managed and operated by Tennant Mining, with Emmerson free-carried for all development, mining and production costs in return for the 6% production royalty.
Under the SMJVs, Tennant Mining’s independent consultants have undertaken development studies on the Chariot underground deposit and the Mauretania and Black Snake open pit deposits.
Tennant Mining is also undertaking development studies on the Golden Forty deposit.
Emmerson will also receive a 2% gross production royalty on all other metals produced from Tennant Mining’s development of mines on the SMJV deposits.