White Devil Scoping Study Shows A$890M NPV and 64,000oz Annual Gold Output
Emmerson Resources confirms the White Devil Gold Deposit as a Major Mine under its joint venture with Tennant Mining, supported by a robust Scoping Study and the start of Feasibility Study activities.
- White Devil Scoping Study converts 78% of resource into mine designs
- Project classified as Major Mine with Emmerson holding 40% interest
- 7-year mine life with average annual production of 64,000 ounces gold
- Strong financial metrics – A$890 million pre-tax NPV8 at A$5,000/oz gold
- Feasibility Study underway with recent high-grade drilling results
Robust Scoping Study Validates White Devil’s Potential
Emmerson Resources has delivered a significant milestone for its Tennant Creek projects with the completion of a comprehensive Scoping Study on the White Devil Gold Deposit. The study confirms the deposit’s status as a Major Mine under the joint venture (JV) with Tennant Mining, a wholly owned subsidiary of Pan African Resources. This classification secures Emmerson a 40% contributing interest in the project’s development, a substantial stake in a deposit boasting over 611,000 ounces of contained gold.
The Scoping Study impressively converts more than 78% of the 4.6 million tonnes at 4.2 grams per tonne gold resource into conceptual mine designs. These include a staged open pit mine with 3.2 million tonnes at 3.73 g/t gold, containing approximately 379,000 ounces, and an underground mine with 1 million tonnes at 3.2 g/t gold for 100,500 ounces. The project’s design anticipates a seven-year mine life with an average annual production of around 64,000 ounces, processed through the existing Nobles CIL facility owned by the JV partner.
Financial Strength and Operational Efficiency
Financial modelling underpins the project’s compelling economics, with a base case pre-tax net present value (NPV) at an 8% discount rate of A$890 million, assuming a gold price of A$5,000 per ounce. Even under a conservative gold price scenario of A$4,000 per ounce, the project maintains a robust pre-tax NPV of A$583 million. Operating costs are estimated at approximately A$2,050 per ounce, with a relatively low initial capital expenditure of A$11.8 million and peak capital needs of A$32.8 million in the first year. The study also highlights the project’s resilience to gold price fluctuations, having been optimised using a gold price of A$3,600 per ounce, well below current market levels.
Advancing Towards Feasibility and Production
Following the positive Scoping Study results, Emmerson has already commenced Feasibility Study activities, including geotechnical diamond drilling to support detailed mine planning. A recent 5,000-metre reverse circulation drilling program west of the historical White Devil open pit has yielded encouraging shallow, high-grade gold intercepts, reinforcing the deposit’s near-surface mining potential. These results are being integrated into an updated Mineral Resource Estimate expected in early November.
Emmerson’s Managing Director, Mike Dunbar, emphasised the quarter’s achievements, noting that the White Devil project’s classification as a Major Mine significantly de-risks the development pathway and secures Emmerson’s meaningful equity position. The company’s strong cash position of A$4.2 million, with no debt, and funding secured through 2026 royalty revenues, provides a solid financial foundation to advance the project.
Broader Portfolio and Next Steps
While the focus remains on Tennant Creek, Emmerson’s portfolio includes early-stage copper-gold porphyry projects in New South Wales, though no ground activities were reported this quarter. The company anticipates further milestones in the coming months, including the completion of the White Devil Feasibility Study, an updated resource estimate, and environmental permitting activities. Additionally, the Golden Forty Project has transitioned into the Small Mines JV, where Emmerson will receive a 6% gross production royalty, offering near-term royalty income potential.
Bottom Line?
Emmerson’s White Devil project advances confidently toward production, but upcoming feasibility results and funding strategies will be critical to watch.
Questions in the middle?
- How will Emmerson finance its 40% share of the White Devil project’s development capital?
- What impact will updated drilling and resource estimates have on the project’s economics?
- How might gold price volatility influence the JV partners’ development timelines and strategies?