Emmerson Resources and Tennant Consolidated Mining Group (TCMG) have signed a joint venture (JV) to develop the Southern Project Area of the Tennant Creek gold project in the Northern Territory.
The Tennant Creek project contains the Northern Project Area and Southern Project Area.
Emmerson’s previous JV partner for the Southern Project Area with Tennant Creek (TRL) was axed in November 2020 to assist its business model.
In the same month, Emmerson entered a strategic alliance with TCMG for the Tennant Creek project’s Northern Project Area.
The new JV with TCMG over the Southern Project Area will result in a minimum $10.5 million spend on exploration over five years, along with progressing studies solely funded by TCMG.
Emmerson managing director Rob Bills said the new JV with TCMG will assist with capital, mining and production expertise to develop the project.
“This new Joint Venture over the Southern Project Area with the TCMG is a logical extension and consolidation of our alliance on the Northern Project Area,” he said.
“TCMG have demonstrated a track record of meeting their JV commitments and continue to be a valued partner that are working with Emmerson to rapidly recommence gold production and development of the Tennant Creek Mineral Field.
“TCMG bring access to capital, mining and production expertise which complements Emmerson’s strong exploration and discovery track record.”
In November 2020, Bills said the company had been frustrated with the lack of progress of Tennant Creek, but the partnership with TCMG will set the company on the right track.
According to Bills, the JV for the Southern Project Area requires a minimum production of 30,000 ounces of gold.
“In parallel, TCMG has consolidated several other projects in the Tennant Creek region and intends to unlock value through building a large, central, modern processing facility,” he said.
“The location and size of this new facility is the subject of current studies. Emmerson is encouraged by the diligent, long-term approach being taken by TCMG to realising full value from one of Australia’s premier goldfields.”
Emmerson owns 100 per cent of the Edna Beryl, Jasper Hills and Southern Project Areas in the Northern Territory.