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Emmerson inks Tennant Creek JV with Evolution

Thursday, June 12, 2014

THE BOURSE WHISPERER: Emmerson Resources (ASX: ERM) has signed a binding Term Sheet with Evolution Mining (ASX: EVN) to fast-track discovery of gold and copper deposits within the company’s 100 per cent-owned tenements at Tennant Creek in the Northern Territory.


Tennant Creek location. Source: Company announcement


Evolution has agreed to work with Emmerson to advance the existing JORC resources identified by Emmerson at Tennant Creek and will drill test a number of gold-copper targets aimed specifically at a rapid resumption of mineral production.

Under the terms of the Farm-in and Joint Venture, Evolution will sole fund expenditure of $15 million on exploration over the next three years to earn a 65 per cent interest in Emmerson’s 2,500 square kilometre tenement package at Tennant Creek.

A further $10 million minimum, sole funded by Evolution over 2 years following the execution of the joint venture, will allow Evolution to earn an additional 10 per cent (total of 75 per cent of the Tennant Creek project.

Exploration and near mine drill programs are scheduled to commence soon, which include an aggressive drill commitment by Evolution.

Emmerson will manage and operate the activities whilst utilising the development and exploration expertise of Evolution via a joint Exploration Management Committee.

“This announcement is the culmination of a focussed and determined effort to introduce a partner to the Tennant Creek Mineral Field who sees the potential beyond that previously identified,” Emmerson Resources managing director Rob Bills said in the company’s announcement to the Australian Securities Exchange.

“The Joint Venture agreement with Evolution will set the scene for the discovery of major new gold-copper resources, building on Emmerson’s work in recent years which began to unlock the secrets of finding a new generation of gold-copper deposits in the Tennant Creek area.

“This agreement effectively secures the future for Emmerson by providing the funding to underpin a very significant exploration effort- to build on the existing JORC resources and to test a range of new generation gold-copper targets, which, if successful, will be fast-tracked through to development.

“We have already established an excellent working relationship with Evolution, share a very similar approach to science driven exploration and are delighted by their commitment to rapidly build a substantive resource base ahead of production.

“Both parties also recognise the importance of continuing to build strong relationships with all stakeholders including the Traditional Owners, the Central Land Council, Northern Territory Government and various communities and businesses in the Tennant Creek Township.”