Emmerson Resources kicks off drilling to revive historic Golden Forty gold mine

Emmerson Resources (ASX: ERM) has begun drilling at the old Golden Forty mine near Tennant Creek as it hunts for high-grade extensions.

The mine, 14km east of Tennant Creek, operated briefly in 1938 and was then revived three decades later before being closed in 1983 after producing 50,000oz at an average 11.9 grams per tonne.

Emmerson will operate a minimum 4,000m drilling program on behalf of its privately owned joint venture partner Tennant Consolidated Mining Group (TCMG) as part of the latter’s $5 million earn-in commitment.

The company says drilling at Golden Forty is aimed at adding further resources and inventory ahead of TCMG establishing a central mill in the area.

TCMG’s website states that it “has acquired the majority of all gold bearing tenure and associated infrastructure in the Tennant Creek region, which historically was Australia’s highest-grade goldfield”.

Success at Golden Forty will progress scoping study

After the short-lived mine was closed, Golden Forty languished through the 1940s and early 1950s. It was drilled briefly, and unsuccessfully, in 1956.

The former listed Australian Development NL mined it from 1969 until 1983 when deteriorating ground conditions and heavy water inflows made operations impossible.

“The mine was decommissioned in 1983 due to these issues — not due to a lack of ore or declining grades,” Emmerson noted.

Successful drill results at Golden Forty will advance the project to a scoping study, adding to the resource total already announced for the Chariot and Mauretania projects.

The company receives a free carried 6% royalty on gold produced over the whole joint venture Southern Project area where TCMG is earning its interest by financing exploration.

Several drill targets have not seen modern exploration

Emmerson has already identified numerous potential extensions to the mineralisation, including several targets in the vicinity of Golden Forty that have not seen modern exploration.

The new targets have been generated from a high-resolution drone magnetic survey.

The first hole is already in progress at the Golden Forty East prospect.

The full program is expected to be completed by late October.

First company to apply new technology at Tennant Creek

Emmerson is the first company since 2008 to apply new proprietary exploration techniques and concepts, after consolidating a 1,706sq km tenement package.

The company has stated previously that the decline in discovery rates in the region does not reflect metal depletion, but is a direct consequence of the lack of fresh concepts and technologies.

Emmerson maintains the view that only half of the deposits in the Tennant Creek mineral field have been discovered.