Emmerson Resources and joint venture (JV) partner Tennant Mining have confirmed the White Devil gold project in the Northern Territory as a major mine.
The 611,400-ounce (oz) project, located 35km north-west of Tennant Creek, will now be transferred into a major mine JV (MMJV), subject to formal documentation where Emmerson will have a 40 per cent stake in the project.
The remaining 60 per cent will be owned by Tennant Mining.
The companies said an updated mineral resource estimate is expected in October, followed by a feasibility study before the end of the year.
“To have an agreement between both joint venture partners that the White Devil gold deposit is a major mine is a substantial development,” Emmerson managing director Mike Dunbar said.
“For the partners to identify the opportunity, complete two resource updates, undertake a scoping study and complete over 10,000m of drilling all within nine months is a testament to not only the prospectivity of the field, but also as a reminder of what can be achieved when JV partners are aligned for a common goal.”
It is understood that the 133,900oz Golden Forty gold deposit has also been transferred into a small mines JV, where Tennant will have 100 per cent control and Emmerson will receive an uncapped six per cent gross production royalty on any gold produced there.
“Given the high-grade nature of the Golden Forty deposit and the proximity to the Nobles CIL processing facility, subject to detailed mine design, scheduling and permitting, it is expected that the deposit will be in operation within the next few years, providing Emmerson with a low-risk return through the royalty stream,” Dunbar said.
Emmerson Resources and Tennant Mining entered a series of JV agreements in November 2020 and May 2021 that committed to form a series of development ventures at mines that were deemed economically viable.
The White Devil project forms part of the companies’ wider Tennant Creek JV project, with 1800km2 owned by Emmerson, covering 90 per cent of one of Australia’s highest-grade goldfields in the Northern Territory.
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