Emmerson’s White Devil: Can Over 60% of Gold Resource Fuel a Major Open Pit?
Emmerson Resources reveals a promising update on its White Devil gold project, confirming a major mine development opportunity with over 60% of its 611,400oz resource convertible to an open pit. The Scoping Study is on track for completion by early July 2025, setting the stage for a Pre-Feasibility Study.
- Preliminary pit optimisations convert >60% of 611,400oz resource to open pit
- Study assumes conservative A$4,000/oz gold price, below current spot price
- Ongoing mine design, scheduling, and underground mining evaluation
- Permitting underway with larger mining lease application submitted
- JV structure retains Emmerson’s significant contributing and clawback interests
White Devil Emerges as Major Mine Development Opportunity
Emmerson Resources Limited (ASX, ERM) has provided a significant update on its White Devil gold project in the Northern Territory, highlighting a strong pathway towards major mine development. The recent preliminary pit optimisations demonstrate that over 60% of the 611,400-ounce Mineral Resource Estimate (MRE) can be converted into an open pit mine shell, based on a conservative gold price assumption of A$4,000 per ounce; substantially below the current spot price of approximately A$5,100 per ounce.
This conversion rate is notable for its robustness, reflecting a deposit relatively insensitive to gold price fluctuations and mining dilution. The White Devil deposit, located about 40 kilometres northwest of Tennant Creek, is shaping up as a Major Mine Deposit (MMD) under Emmerson’s joint venture (JV) agreement with Tennant Mining, a subsidiary of Pan African Resources. This classification triggers a JV structure where Emmerson retains a meaningful 40% contributing interest prior to Tennant Mining’s earn-in completion, or 25% thereafter, with clawback rights preserving Emmerson’s stake.
Advancing Towards Detailed Mine Planning and Permitting
The scoping study, expected to conclude by early July 2025, is progressing well with detailed pit design and mine scheduling underway. Entech Pty Ltd has completed the preliminary pit optimisations, which incorporate realistic mining parameters including dilution and ore loss, and assume processing at the nearby Nobles CIL gold plant operated by JV partner Tennant Mining. Metallurgical recovery assumptions remain high at 95%, supported by historical performance data from the White Devil operation and the adjacent processing facility.
Beyond the open pit, a substantial high-grade mineral resource remains at depth, currently under evaluation for underground mining potential. This dual mining approach could enhance the project’s economics and longevity.
Permitting efforts are also advancing, with a heritage survey completed over an expanded area that revealed no significant sites of concern. Recognising the need for additional surface infrastructure to support the large-scale open pit, Emmerson has lodged an application for a larger mining lease with Northern Territory regulators. This proactive step aims to avoid delays in development timelines.
Strategic Positioning in a High-Grade Gold District
White Devil sits within the prolific Tennant Creek Mineral Field, a historically rich gold and copper region that has produced over 5.5 million ounces of gold. Emmerson’s commanding land position and exploration success in the district underscore the strategic value of the project. The proximity to the Nobles CIL processing plant, recently commissioned by JV partners, offers a logistical advantage that could accelerate project advancement.
Managing Director Mike Dunbar emphasised the transformative potential of White Devil, noting the conservative assumptions underpinning the study and the company’s commitment to advancing the project swiftly towards a Pre-Feasibility Study.
Looking Ahead
With the scoping study nearing completion and permitting underway, Emmerson is well positioned to unlock the value of White Devil. The combination of a substantial open pit resource, promising underground potential, and a supportive JV framework sets the stage for a significant development milestone in the Northern Territory gold sector.
Bottom Line?
White Devil’s evolving scoping study and JV dynamics position Emmerson for a pivotal development phase, but detailed designs and underground evaluations will be critical next steps.
Questions in the middle?
- How will the final pit design and scheduling impact contained ounces and project economics?
- What are the timelines and potential hurdles for the larger mining lease approval?
- How might the underground mining evaluation alter the overall resource recovery and project scope?