Emmerson Resources has formed a strategic alliance with Territory Resources that will lead to the development of a processing hub to support small mines near Tennant Creek in the Northern Territory.
Under the alliance agreement, Emmerson will sell its Warrego mill lease to Territory for construction and commissioning of a central processing hub.
The proposed 300,000t/y facility will be the hub for feed from Emmerson’s small mines, which will have priority over other third party feed.
Territory will pay an initial $100,000 deposit to Emmerson, with further payments subject to negotiations and transfer of liabilities.
In addition, Territory will assess Emmerson’s small mines for future mining and processing on a profit share or royalty basis.
The companies will negotiate a farm-in or joint venture over Emmerson’s southern tenements and Territory’s Noble Nob and Juno projects, further consolidating the ownership of the Tennant Creek Mineral Field.
If a farm-in or JV is established, Emmerson will manage and operate the exploration program.
Emmerson managing director Rob Bills said the development of a modern centralised processing facility at Warrego was a major step forward to establishing an integrated exploration, mining and processing hub in the Tennant Creek Mineral Field.
“This is something Emmerson has been championing for some time as it has the potential to unlock stranded gold assets in the region and is consistent with our strategy of monetising our smaller, high grade resources,” Bills said
Emmerson had development of its Black Snake mine — the company’s second small gold operation after Edna Beryl — approved by the NT Government last week.
Territory chairman Yuzheng Xie said the strategic alliance would bring new life back to Tennant Creek, with the potential to create many new jobs and encourage more exploration in the region.
“Our ambition is to start mining multiple high-grade small deposits to feed the centralised processing facility as soon as possible,” Xie said.
Territory’s primary asset is an interest in the Frances Creek iron ore mine south of Darwin.