Emmerson Resources has signed an exploration farm-in and joint venture agreement with Ivanhoe Australia to fast track the discovery of potentially world-class gold and gold-copper deposits at the Tennant Creek Mineral Field in the Northern Territory.

Ivanhoe will be involved in aggressively advancing the large number of high quality gold-copper targets identified by Emmerson within its extensive tenement package.

It will fund expenditure of $18 million on exploration over a three year farm-in period to earn a 51% interest in the majority of the tenement package.

Emmerson will undertake the exploration on behalf of the joint venture and is about to undertake an aggressive drilling program, now sole funded by Ivanhoe.

Emmerson’s managing director Rob Bills says the agreement represents a very exciting development for the company and for exploration within the Tennant Creek region, which has enjoyed a significant renaissance over the past few years.

“Our view has been that this world-class field has a lot more to offer and we are delighted to have secured the involvement of one of the world’s most progressive and successful international mining companies to join us in the quest for a new generation of discoveries at Tennant Creek.”

Historically the Tennant Creek Mineral Field has produced more than 5.5 million ounces of gold and 470,000 tonnes of copper.

Emmerson has pursued a deliberate strategy of investment in the application of modern and innovative exploration techniques to reactivate discovery in the TCMF and target a new generation of world-class, high-grade gold-copper deposits.

A large number of new generation iron oxide gold targets have been generated from this investment, many of which are virgin greenfields targets that have now also been recognized by Ivanhoe as potential tier 1, or world-class, exploration targets.

Rob Bills says, “This agreement effectively secures the future of our company by ensuring adequate funding is available to underpin a very significant exploration push over the next three years, enabling the joint venture to test a range of deep drilling targets and, if successful, fast track these through to development.

“Importantly, the joint venture recognizes the differing hurdle rates of both parties and provides the flexibility for Emmerson to explore tier 2 deposits in its own right and progress these through to production at its 100% owned Warrego CIP gold treatment facility whilst at the same time maintain a substantial equity in any tier 1 world class discoveries.

www.emmersonresources.com.au