A quest for copper and gold in the Tennant Creek of Australia's Northern Territory will start with a $A7 million ($US5.6 M) programme for the balance of this year.
Emmerson Resources Ltd (ASX: ERM) said today that a substantial search quest would take place, using part of the funds provided by Ivanhoe Australia Ltd (ASX: IVA) - the well funded explorer now holding the Australian assets of Ivanhoe Mines Ltd, the North American-based company run by Robert Friedland.
Ivanhoe Australia will provide the first $A18 M ($US14.4 M) in the joint venture.
Emmerson's managing director Rob Bills said the joint venture's first activity has begun with reverse circulation drilling on the Troika prospect and drilling will then advance to targets in the Trinity area.
Emmerson, will manage the exploration on a series of greenfield projects where targets are perceived to be iron oxide gold-copper deposits.
About the time of the Ivanhoe farm-in, Emmerson in June provided more positive drilling results on its large holdings in the Tennant Creek field, where there are historic high grade gold-copper mines and recent positive results for Westgold Resources Ltd (ASX: WGR) in the Rover field.
The June drilling was on the Analytic One target for Emmerson, just west of Tennant Creek where there was a return of 24 metres grading 6.27 grams/tonne gold from 246 metres depth, including 3m @ 48.8 g/t gold. This hole was 30 metres west of the company's original intercept in that area of 3m @ 7.76 g/t gold from 225m.
At a recent shareholders meeting Rob Bills said that Ivanhoe would provide $A28 M ($US22.4 M) to earn a 51% stake in the majority of Emmerson's properties in the Tennant Creek field. This would be on "Tier One" properties and Emmerson would retain 100% ownership of Tier Two properties.
Bills said the Tennant Creek field was historically one of the highest grade gold fields in Australia, averaging 15-20 g/t gold and 2 to 4% copper.
Emmerson owns the only gold plant within 500 kilometres and its replacement value was put at $A20 M ($US16 M).
"Emmerson is utilising new technologies and exploration concepts to unlock the next generation of ore bodies, at depth," he said.
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