Emmerson Resources Advances White Devil Drilling to Unlock Major Gold Potential

Renewed Drilling Effort at White Devil

Emmerson Resources (ASX – ERM) has recommenced a 5,000-metre reverse circulation (RC) drilling program at its White Devil gold deposit in the Northern Territory. This campaign focuses on infilling historical wide-spaced drilling and exploring shallow extensions to the west of the existing Mineral Resource Estimate (MRE), which currently stands at 4.6 million tonnes grading 4.2 grams per tonne gold, equating to approximately 611,400 ounces. Notably, 87% of this resource is classified as indicated, underscoring its robustness.

The drilling aims to enhance the understanding of the deposit’s western limits, potentially expanding mineralisation and enabling optimisation of the open pit design. Assay results are anticipated progressively through July, which will provide critical data to refine resource models and development plans.

Strategic Importance of White Devil

White Devil represents the largest undeveloped gold resource in the Tennant Creek Mineral Field, a historically prolific region that has yielded over 5.5 million ounces of gold. Its proximity to Pan African Resources’ Nobles CIL plant, which recently commenced commercial production, adds logistical and economic advantages to the project.

Emmerson’s Managing Director, Mike Dunbar, highlighted the significance of the deposit, describing it as a “game changer” for both Emmerson and Pan African Resources. The current drilling and upcoming studies are part of a concerted effort to unlock the deposit’s full potential amid a favourable gold price environment.

Advancing Towards Major Mine Status

The White Devil Scoping Study is well advanced and expected to conclude within approximately four weeks. Upon completion, the deposit is anticipated to be classified as a Major Mine Deposit (MMD) under the joint venture (JV) agreement with Tennant Mining, a wholly owned subsidiary of AIM-listed Pan African Resources. This classification reflects a deposit containing more than 250,000 ounces of gold.

Following the Scoping Study, Emmerson plans to initiate a Pre-Feasibility Study (PFS), supported by a geotechnical diamond drilling program scheduled for July. This drilling will assess pit wall angles, a critical factor in open pit design and reserve estimation. The Scoping Study has so far assumed conservative pit wall angles, and the geotechnical data will enable more precise engineering and economic evaluations.

JV Structure and Ownership Dynamics

Under the JV agreements, Emmerson retains a 40% contributing interest in any MMD transferred to a Major Mine JV prior to Tennant Mining’s earn-in completion, or a 25% interest thereafter, with clawback rights allowing Emmerson to reclaim up to 40% under certain conditions. This layered ownership structure introduces complexity but also preserves Emmerson’s strategic stake in the project’s future development and profitability.

As assay results and study outcomes emerge, investors will gain clearer insights into the project’s scale and economics, which could significantly influence Emmerson’s valuation and strategic positioning within the gold exploration sector.