White Devil Deposit Adds Nearly 490,000oz Gold, Tennant Creek Resource Surges to 866,000oz
Emmerson Resources has announced a maiden Mineral Resource Estimate for its White Devil deposit, adding nearly 490,000 ounces of high-grade gold and expanding the Tennant Creek resource base by 130% to 866,000 ounces. This milestone sets the stage for accelerated development and potential reclassification of the deposit under the joint venture with Pan African Resources.
- Maiden Mineral Resource Estimate of 3.63Mt at 4.2 g/t gold for 489,900 ounces at White Devil
- Tennant Creek total resource base grows 130% to 866,000 ounces of gold
- Approximately 89% of White Devil resource classified as Indicated, enabling development progress
- White Devil deposit lies on a granted mining lease, 48km from the upcoming Nobles CIL processing facility
- Updated resource estimate including recent drilling planned for late Q1 2025
A Significant Leap for Emmerson Resources
Emmerson Resources Limited (ASX: ERM) has delivered a landmark update with the announcement of a maiden Mineral Resource Estimate (MRE) for its White Devil gold deposit, located within the prolific Tennant Creek Mineral Field in the Northern Territory. The new resource quantifies 3.63 million tonnes grading 4.2 grams per tonne gold, equating to 489,900 ounces of contained gold. This addition has catapulted Emmerson’s Tennant Creek resource base by a remarkable 130%, now standing at 866,000 ounces of high-grade gold.
The White Devil deposit, historically mined between 1987 and 1999, produced over 761,000 ounces at an impressive head grade of 14.6 g/t gold before operations ceased due to low gold prices rather than resource depletion. The fresh MRE confirms substantial remaining mineralisation, with 89% of the resource classified as Indicated, a category that provides the confidence necessary to advance development studies and potentially convert resources into Ore Reserves.
Strategic Location and Development Prospects
Strategically, the White Devil deposit is situated on a granted mining lease and lies just 48 kilometres from the Nobles CIL gold processing facility, currently under construction by Pan African Resources’ wholly owned subsidiary, Tennant Consolidated Mining Group (TCMG). The Nobles plant is scheduled for commissioning in the second quarter of 2025, with commercial production expected by Q3. This proximity offers Emmerson a logistical advantage, potentially reducing processing costs and accelerating time to production.
Initial development studies have commenced to determine the optimal mining strategy, considering both open pit and underground methods. The deposit remains open at depth and along strike, indicating further upside potential. Notably, the current MRE excludes a recently drilled shallow eastern extension, which is expected to be incorporated in an updated resource estimate planned for late March 2025.
Joint Venture Dynamics and Economic Implications
Under the joint venture agreement with TCMG/Pan African Resources, the classification of the White Devil deposit as a Major Mine Deposit (exceeding 250,000 ounces) could significantly enhance Emmerson’s economic interest. Instead of receiving a 6% gross production royalty typical for smaller mines, Emmerson stands to retain up to a 40% contributing ownership stake, a substantial improvement that reflects the deposit’s scale and quality.
Managing Director Mike Dunbar highlighted the achievement as the most significant development for Emmerson in five years, emphasizing the company’s strategy to rapidly expand its high-grade resource base at a cost-efficient rate of less than $3.50 per resource ounce added. The resource base has surged by over 415% in the past 12 months, underscoring the effectiveness of Emmerson’s exploration and development approach.
Robust Geological and Technical Foundations
The MRE was prepared by independent consultant Stephen Rose of Rose Mining Geology, adhering to the JORC 2012 Code. It integrates extensive historical drilling data, comprising nearly 2,900 drill holes and over 187,000 metres of sampling, with modern geological modelling techniques. The resource estimate benefits from a detailed understanding of the deposit’s ironstone-hosted gold mineralisation, validated by reconciliation with historical production records.
Emmerson’s comprehensive database and rigorous quality control measures provide confidence in the resource’s reliability. The deposit’s mineralisation is hosted within hematite-magnetite-quartz-jasper ironstones of the Warramunga Formation, a well-known host for high-grade gold in the Tennant Creek district.
Looking Ahead
With the Nobles processing facility nearing completion and the White Devil resource now firmly established, Emmerson is poised to advance development studies and potentially transition the deposit into production. The upcoming updated MRE incorporating recent drilling results will be a critical milestone, potentially unlocking further resource growth and refining the economic outlook.
Bottom Line?
Emmerson’s White Devil milestone reshapes its Tennant Creek prospects, setting the stage for a pivotal development phase.
Questions in the middle?
- How will the inclusion of the shallow eastern extension in the updated MRE affect resource size and classification?
- What are the timelines and capital requirements for advancing White Devil from resource to production?
- How will the joint venture dynamics with Pan African Resources influence Emmerson’s strategic decisions and funding?