White Devil’s Feasibility Drilling Raises Questions on JV Ownership and Project Scale

• 1,400m geotechnical diamond drilling underway at White Devil
• 5,000m reverse circulation drilling completed with samples dispatched
• White Devil Scoping Study nearing completion, showing >60% resource conversion
• White Devil Mineral Resource Estimate at 611,400oz gold with 87% indicated
• 1,500m extensional drilling completed at Hermitage Copper-Gold Project

White Devil Drilling Accelerates Feasibility Progress

Emmerson Resources (ASX, ERM) has taken a significant step forward in advancing its White Devil Gold Deposit in the Northern Territory by commencing a 1,400-metre geotechnical diamond drilling program. This drilling is a critical component of the upcoming feasibility study, designed to provide detailed information on rock stability and mining conditions essential for mine planning.

This follows the completion of an extensive 5,000-metre reverse circulation (RC) drilling campaign aimed at expanding and better defining the deposit. Samples from this program have been dispatched for assay, with results expected over the coming weeks, which will be pivotal in refining resource estimates and mine design.

Scoping Study Signals Strong Potential

The White Devil Scoping Study, anticipated to conclude shortly, has already delivered encouraging results. Using a gold price assumption of A$4,000 per ounce, preliminary pit optimisations suggest that over 60% of the current Mineral Resource Estimate (MRE) of 611,400 ounces can be economically extracted via open pit mining. Notably, approximately 95% of this resource is classified in the higher-confidence Indicated category, underscoring the deposit’s quality and potential.

Beyond open pit mining, Emmerson is also evaluating underground mining options, with preliminary designs and stope optimisations underway. This dual approach could enhance the project’s overall economics and longevity.

Strategic JV Structure and Ownership Rights

White Devil is held under a joint venture with Tennant Mining, a subsidiary of Pan African Resources. Under the agreement, Emmerson can retain a significant interest; up to 40%; in the project should it be classified as a Major Mine Deposit (defined as containing over 250,000 ounces of gold). The company also holds claw back rights, providing flexibility and potential upside in ownership depending on JV earn-in progress.

This structure allows Emmerson to maintain meaningful exposure to the project’s development while leveraging Tennant Mining’s operational capabilities.

Additional Drilling at Hermitage Project

Capitalising on rig availability, Emmerson also completed a 1,500-metre RC extensional drilling program at its 100% owned Hermitage Copper, Gold and Critical Metals Project. This program aimed to extend known mineralisation along strike, with assay results pending. The Hermitage project complements Emmerson’s portfolio by targeting copper and critical metals, diversifying its exploration focus beyond gold.

Looking Ahead

With the scoping study wrapping up and feasibility drilling underway, Emmerson is positioning White Devil for a potential major mining operation in one of Australia’s most prolific gold fields. The coming weeks will be critical as assay results and study outcomes provide clearer insights into the project’s viability and scale.

Bottom Line?

Emmerson’s methodical advancement at White Devil sets the stage for a pivotal feasibility study that could unlock a major gold mining operation.

Questions in the middle?

• What will the assay results from the recent RC and geotechnical drilling reveal about resource expansion and grade?
• How will the joint venture earn-in and claw back provisions ultimately shape Emmerson’s ownership and control of White Devil?
• What are the economic implications of combining open pit and underground mining methods at White Devil?