Emmerson Secures A$5M Funding, Drills 5,000m, and Advances Gold Processing Facility

Strategic Alliance to Unlock Tennant Creek Potential

Emmerson Resources Limited has taken a significant step forward in its Tennant Creek operations by entering into a strategic collaboration with CuFe Limited and Tennant Minerals Limited. This alliance aims to assess development options for copper and gold deposits across a combined 2,365km² landholding in one of Australia's richest mineral fields. Central to this collaboration is the exploration of a single, multi-user processing facility designed to optimize the region’s high-grade resources.

The alliance is currently conducting a Scoping Study to evaluate processing plant configurations, mine scheduling, infrastructure needs, and environmental considerations. This cooperative approach echoes the historical 'hub and spoke' model of the Tennant Creek Mineral Field, potentially enabling a more scalable and financially attractive development than isolated projects.

Drilling Program Targets Resource Growth

During the December quarter, Emmerson commenced a 5,000-metre reverse circulation (RC) drilling program focused on the Nobles Nob West Prospect and the White Devil Gold Project. These targets have shown promising high-grade gold intersections in historical data, and the current drilling aims to expand and upgrade the existing mineral resource base. Assay results are expected in the first quarter of 2025, which will inform an updated Mineral Resource Estimate for Tennant Creek.

The White Devil project, in particular, holds significant untapped potential with shallow, high-grade mineralisation open at depth and along strike. A maiden JORC-compliant resource estimate for White Devil is nearing completion, excluding the shallow eastern extension currently being drilled.

Pan African Resources Acquisition De-risks Royalty Streams

In a notable corporate development, Pan African Resources PLC acquired Emmerson’s joint venture partner Tennant Consolidated Mining Group Pty Ltd (TCMG) for approximately A$86 million. Pan African’s takeover brings a robust balance sheet and operational expertise, significantly de-risking the construction and commissioning of the Nobles CIL gold processing facility, which is now about 75% complete and on track for commissioning in Q2 2025.

Emmerson retains a 6% uncapped gross production royalty on all gold mined within the JV area, with a minimum production payment guaranteeing revenue equivalent to 3,600 ounces of gold by May 2026. This arrangement effectively carries Emmerson into production and cash flow without exposure to capital or operating costs.

Financial Position and Future Outlook

Emmerson bolstered its financial position with a successful A$5 million equity placement in December 2024, raising funds from both new strategic investors and existing shareholders. The company ended the quarter with $6.4 million in cash and no debt, fully funding its exploration programs and corporate activities through to 2026 royalty revenues.

Looking ahead, Emmerson plans to complete the Strategic Alliance Scoping Study, commence metallurgical and geotechnical studies at the Hermitage Copper project, and continue drilling activities within its joint ventures. In New South Wales, exploration targeting large copper-gold porphyry deposits at the Kiola Project will intensify following an independent review identifying multiple high-priority targets.

Managing Director Mike Dunbar highlighted the strategic importance of collaboration and the strong pipeline of exploration targets, emphasizing the company's position as effectively free-carried into production and cash flow. The upcoming assay results and resource updates will be critical milestones for Emmerson’s growth trajectory.