Progress at Emmerson’s Hermitage and Mauretania copper-gold projects continues

Emmerson Resources (ASX: ERM) made “great progress” across a number of fronts during the June quarter (Q4 FY2022), including unearthing visual copper and gold at multiple sites at Hermitage, while debuting a high-grade maiden resource for Mauretania, and securing government co-funding grants.

The Perth-based company reported visual copper-gold was intersected during follow-up drilling at its Hermitage project in the Tennant Creek region of the Northern Territory.

A 38m interval was hit consisting of malachite, native copper, and chalcopyrite in hole HERCDD005, with also 57m interval of mineralisation uncovered consisting of native copper, malachite, and chalcopyrite in hole HERCDD006.

Emmerson managing director Rob Bills said the 100% owned Hermitage project was the highlight of the quarter.

“Great progress continues on a number of fronts – the most exciting being at Emmerson’s 100% owned Hermitage project which is shaping up as one of our best copper-gold discoveries – we eagerly await the assay results,” he said.

Throughout the June quarter, Emmerson was granted co-funding from the Northern Territory Government for three geophysics and drilling programs at its’ Golden Forty South and Golden Forty East targets, as well as for its high-definition drone magnetic survey in the northern project area.

The company was also awarded a co-funding drilling grant by the NSW Government for its Kiola project.

Mineral resource for Mauretania gold deposit

Also during the period, Emmerson debuted a high-grade maiden resource for the Mauretania gold deposit at Tennant Creek, which is held in joint venture with Tennant Consolidated Mining Group.

The maiden inferred and indicated resource totals 256,216 tonnes at 3.5 grams per tonne gold for 28,974 ounces of contained gold.

Emmerson is entitled to a 6% free-carried gold revenue royalty at Mauretania, with mineralisation remaining open and unexplored at depth.

Mr Bills said the 28,974oz resource for Mauretania adds to the project’s Chariot resource of 138,800oz and supports Tennant Consolidated’s plans to establish a central processing facility in the region this year.

Advancing Hermitage

Phase two drilling at Hermitage during the June quarter was following up on a discovery hole at the project which intersected 116m at 3.4% copper and 0.88g/t gold.

Emerson is eagerly awaiting assays from the visual copper intersected in the phase two program during the June quarter.

The company expects assays from HERCDD005 in late July, with the remainder anticipated for late August.

Visible gold and copper were also uncovered in the latest drill hole at Hermitage HERCDD010 in June, with observations indicating copper mineralisation continues at depth.

“There are now three distinct targets at Hermitage that include shallow copper in the oxide zone, gold associated with massive hematite and primary copper below the fault-hosted in breccias stockwork veins and fractures,” Mr Bills explained.

Emmerson’s co-funding grants

During the quarter, Emmerson secured co-funding grants through the Geophysics and Drilling Collaborations (GDC) program run by the Northern Territory Geological Survey (NTGS).

The grants contribute towards filling knowledge gaps, advancing exploration activity, and supporting the discovery and development of resources for its Golden Forty East, and Golden Forty South targets, along with a high-definition drone magnetic survey in the northern project area.

Emmerson’s Golden Forty South program aims to refine drill targets, while at Golden Forty East exploration is designed to identify extensions to the high-grade Golden Forty gold mine.

The drone magnetic survey is targeting new gold and copper anomalies.

NSW Kiola project

Over in NSW, recent work on one of Emmerson’s highest ranked, early-stage gold-copper projects confirmed that the Kiola Geochemical Zone (KGZ) holds attributes of world class porphyry gold-copper mineralisation.

Emmerson’s field program recorded rock chip samples of up to 19.6g/t gold and 2.16% copper.

The company has also recently been awarded a $118,000 co-funding grant from the NSW Government for the upcoming drilling at Kiola.

Drilling is expected to commence later in the year.

Fully-funded, joint venture progress

To fund its planned drilling programs, Emmerson raised of $5.22 million before costs during the June quarter – closing the period out with $9 million in cash at hand.

Additionally, Mr Bills said the company’s 6% gold production royalty on any declared mine within its joint venture areas at Tennant Creek provides further upside.

“Our emerging royalty business shields our shareholders form both the capital and operating expenditures plus the associated risks with moving from discovery into production … particularly relevant in the current environment where many producers are reporting escalating all-in-sustaining costs,” Mr Bills added.

Mr Bills noted that drilling would begin at the joint venture areas at Golden Forty in the current quarter, which includes the historic high-grade gold mine.

“Emmerson has identified several new targets at Golden Forty east and south that have the potential of adding further high-grade gold and if successful, advancing to the mining schedule which currently includes the Mauretania, Chariot and Black Snake resources.”