Tennant Creek JV Sets $6.9M Q1 2026 Budget for Major Drilling Campaign
Emmerson Resources and Pan African Resources have approved a $6.9 million exploration budget for the Tennant Creek Joint Venture in Q1 2026, marking the largest quarterly spend in over two decades. The program targets high-grade gold deposits with extensive drilling and geophysical surveys.
- Record $6.9 million Q1 2026 exploration budget approved
- Diamond and reverse circulation drilling focused on White Devil and Golden Forty South
- Emmerson’s 25% share of expenditure approximately $1.4 million
- 180km airborne magneto telluric survey planned over priority targets
- Minimum production payments of ~$20 million expected in 2026 due to gold shortfall
A Bold Step in Tennant Creek Exploration
Emmerson Resources (ASX – ERM) and its joint venture partner Pan African Resources have unveiled a substantial increase in exploration activity at the Tennant Creek Mineral Field, approving a $6.9 million budget for the first quarter of 2026. This marks the most significant quarterly exploration investment in the region for over 20 years, signaling renewed confidence in the potential of this historically rich gold province.
The Tennant Creek JV, where Pan African holds 75% and Emmerson 25%, plans an aggressive drilling campaign targeting extensions of known high-grade deposits and new geophysical anomalies. The program includes 8,600 metres of diamond drilling and nearly 14,000 metres of reverse circulation drilling, focusing on key deposits such as White Devil and Golden Forty South, alongside other promising prospects like TC8 Mine extensions and the Comstock trend.
Strategic Focus on High-Grade Targets
The White Devil deposit, with an existing resource of over 616,000 ounces at 4.1 grams per tonne, is a primary focus. The JV plans deep diamond drilling to test depth extensions and adjacent geophysical targets, aiming to expand this significant resource. Similarly, the Golden Forty South area will see targeted drilling between the Golden Forty and Nobles deposits, potentially unlocking new zones of mineralisation near Pan African’s processing facility.
Complementing the drilling, a 180-kilometre airborne magneto telluric survey will cover five priority targets, enhancing the geological understanding and guiding future exploration efforts. This integrated approach reflects a methodical strategy to unlock the Tennant Creek field’s underexplored potential.
Financial Position and Production Outlook
Emmerson’s share of the Q1 exploration budget is approximately $1.4 million, funded from existing cash reserves and recent option exercises. The company’s strong cash position is further bolstered by anticipated minimum production payments of around $20 million due between April and August 2026. These payments arise from agreed royalties linked to production shortfalls, reflecting the JV’s current production schedule and underscoring the financial resilience of Emmerson amid ongoing exploration.
Managing Director Mike Dunbar highlighted the significance of this budget, noting it represents a leap from an average monthly spend of $85,000 during the earlier exploration earn-in phase to $2.3 million per month. This dramatic increase underscores the JV partners’ shared conviction in the Tennant Creek Mineral Field’s potential to deliver substantial resource growth.
Looking Ahead
As drilling and survey results begin to emerge in late Q1 and into Q2 2026, market watchers will be keen to assess the impact on resource estimates and development prospects. The JV’s methodical exploration program, backed by solid financial footing and a collaborative partnership, positions Tennant Creek as a compelling story in Australia’s gold exploration landscape.
Bottom Line?
With record exploration funding and strong financial backing, Emmerson’s Tennant Creek JV is poised for a pivotal phase of discovery and growth.
Questions in the middle?
- Will the extensive drilling confirm significant extensions to the White Devil and Golden Forty deposits?
- How will the anticipated $20 million minimum production payments influence Emmerson’s near-term financial strategy?
- What new insights will the airborne magneto telluric survey provide about unexplored targets in the Tennant Creek field?
