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EMMERSON RESOURCES LIMITED — Capital/Financing Update 2015
Jul 28, 2015
64876_rns_2015-07-28_a256bc66-27c8-4b6d-a69e-2c87b045ce39.pdf
Capital/Financing Update
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3 Kimberley St. West Leederville, WA 6007 PO BOX 1573 West Perth WA 6872 Telephone 08 9381 7838 Facsimile 08 9381 5375 Email: [email protected] Website: www.emmersonresources.com.au
ABN 53 117 086 745
29 July 2015
Significant Copper Sulphides Intersected (Amended)
Emmerson Resources Limited (ASX: ERM) attaches a revised announcement in relation to the significant copper sulphides intersected. The original announcement was made on 15 July 2015 and a revised announcement has now been made to append the following to the original announcement:
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Drill hole detail (Table 1)
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Sampling techniques and data (Section 1)
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Reporting of exploration results (Section 2)
For and on behalf of Emmerson Resources Limited
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Trevor Verran Company Secretary
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ASX Announcement ASX: ERM ABN: 53 117 086 745
29 July, 2015
Significant copper sulphides intersected JV approves aggressive new program
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Multiple zones of copper sulphide mineralisation intersected in pre-collar to deep diamond drill hole GODD032. Samples dispatched for analysis
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New copper zones interpreted as extensions to the nearby Goanna discovery, some 800m to the east
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Exploration budget for the September quarter approved and includes an aggressive drill program of 28,000m
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All exploration continues to be funded by Evolution Mining Limited pursuant to the farm-in agreement
Emmerson Resources Limited (“Emmerson”, ASX:ERM) is pleased to provide the following update on its deep drilling program at the Tennant Creek project. Drill hole GODD032 is co-funded as part of the Northern Territory’s “Creating Opportunities for Resources Exploration” (CORE) initiative and is planned to a total depth of 1,200m. This will assist in validating the new geological and structural interpretation based on the recent 2D seismic traverse and, test for gold mineralisation, some 400m beneath the historic underground Gecko copper workings (figures 1 & 2).
The pre-collar to this deep hole has unexpectedly intersected multiple zones of copper sulphide mineralisation associated with quartz - chlorite veins, very analogous to the recently discovered Goanna mineralisation some 800m to the east (figures 3, 4 & 5). Further infill drilling will be required to confirm this as it has important economic implications with regard to adding additional copper resources close to the existing mine development (figure 1). Samples have been dispatched for analysis.
The drill hole has now switched to diamond core and is progressing towards the deeper target zones.
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Emmerson is also pleased to announce that following a meeting in Tennant Creek with its partner, Evolution Mining Limited, an aggressive 28,000m drilling program has been approved for the September quarter involving the drill testing of a variety of high calibre gold targets. The portfolio of targets generated in the early part of this year are now moving into the more interesting drill testing stage and consist of:
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12,000m of regional greenfields RAB drilling over a number of targets within the Eastern Project Area (EPA). This will assist in developing drill targets along a newly discovered shear zone where prospectors have found gold nuggets and where the recent aeromagnetic survey has indicated the presence of buried ironstones;
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12,000m of RC drilling spread across newly identified “off hole” magnetic gold targets at Chariot and three new greenfield targets within the EPA; and
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4,000m of diamond drilling to test a recently identified “off hole” magnetic target at Chariot East and to further test two high calibre, buried ironstone targets in the EPA – these projects were generated from our new predictive targeting model where key geological, geochemical and geophysical attributes are strongly correlated with the known large deposits in Tennant Creek. This modelling suggests these targets contain all the attributes of much larger deposits and have been overlooked in previous programs.
Media Enquiries:
Phil Retter NRW Communications Tel: +61 407 440 882 [email protected]
Investor Enquiries:
Mr Rob Bills Managing Director & Chief Executive Officer Tel: +61 8 9381 7838 www.emmersonresources.com.au
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About Tennant Creek and Emmerson Resources
The Tennant Creek Mineral Field (TCMF) is one of Australia’s highest grade gold and copper fields producing over 5.5 Mozs of gold and 470,000 tonnes of copper from a variety of deposits including Gecko, Orlando, Warrego, White Devil, Chariot and Golden Forty, all of which are within Emmerson Resources (ASX: ERM) exploration and joint venture portfolio. These deposits are considered to be highly valuable exploration targets and, utilising modern exploration techniques, Emmerson has been successful in discovering copper and gold mineralisation at Goanna and Monitor in late 2011, the first discoveries in the TCMF for over a decade. To date, Emmerson has only covered 5.5% of the total tenement package (in area) with these innovative exploration techniques and is confident that, with further exploration, more such discoveries will be made.
Emmerson holds 2,500km[2] of ground in the TCMF, owns the only gold mill in the region and holds a substantial geological database plus extensive infrastructure and equipment. Emmerson has consolidated 95% of the highly prospective TCMF where only 8% of the historical drilling has penetrated below 150m.
Emmerson is led by a board and management group of experienced Australian mining executives including former MIM and WMC mining executive Andrew McIlwain as non-executive chairman, and former senior BHP Billiton and WMC executive Rob Bills as Managing Director and CEO.
Pursuant to the Farm-in agreement entered into with Evolution Mining Limited (Evolution) on 11 June 2014, Evolution is continuing to sole fund exploration expenditure of $15 million over three years to earn a 65% interest (Stage 1 Farm-in) in Emmerson’s tenement holdings in the TCMF. An option to spend a further $10 million minimum, sole funded by Evolution over two years following the Stage 1 Farm-in, would enable Evolution to earn an additional 10% (Stage 2 Farm-in) of the tenement holdings. Evolution must spend a minimum of $7.5 million on exploration, or pay Emmerson the balance in cash, before it can terminate the farm-in. Emmerson is acting as manager during the Stage 1 Farm-in and is receiving a management fee during this period. Exploration expenditure attributable to the Stage 1 Farm-in to date is approximately $5 million.
About Evolution Mining
Evolution Mining (ASX:EVN, www.evolutionmining.com.au) is a leading, growth-focused Australian gold miner. The Company operates five wholly-owned mines – Cracow, Mt Carlton, Mt Rawdon and Pajingo in Queensland and Edna May in Western Australia.
Group production for FY14 totalled 427,703 ounces gold equivalent at an All-In Sustaining Cost of A$1,083/oz. FY15 production guidance from its five existing operating assets is 400,000 – 440,000 ounces gold equivalent at All-in Sustaining Cost in the range of A$1,050 – A$1,130/oz.
Regulatory Information
The Company does not suggest that economic mineralisation is contained in the untested areas, the information contained relating to historical drilling records have been compiled, reviewed and verified as best as the Company was able. As outlined in this announcement the Company is planning further drilling programs to understand the geology, structure and potential of the untested areas. The Company cautions investors against using this announcement solely as a basis for investment decisions without regard for this disclaimer.
Competency Statement
The information in this report which relates to Exploration Results is based on information compiled by Mr Steve Russell BSc, Applied Geology (Hons), MAIG, MSEG. Mr Russell is a Member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition and the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Russell is a full time employee of the Company and consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
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Figure 1: Plan view of the Gecko Corridor, showing the location of GODD032 deep hole and position of the 2D Seismic Lines. Figure also shows the location of the Goanna prospect.
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----- Start of picture text -----
Gecko Underground
workings (blue =
copper orebodies)
Contour of magnetic
inversion model
Green = possible
duplex within the
dilational “feeder
structure” to the
Gecko mineralisation
Figure 2: Cross section showing the current depth of GODD032 and
downhole trace (magenta) on a background of the 2D seismic.
Inset.box: showing the location of intercepted sulphides from RC chips
pre-collar (see Figures 3, 4 and 5)
----- End of picture text -----
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Figure 3: GODD032 RC chips showing chalcopyrite – pyrite on white quartz veins
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Figure 4: GODD032 RC chips showing chalcopyrite – pyrite on white quartz veins
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Figure 5: GODD032 RC chips showing chalcopyrite – pyrite on white quartz veins
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Table 1: Gecko Deeps GODD032 Drill hole detail
| Hole ID | East (MGA94_53) |
North (MGA94_53) |
RL AHD |
Dip (deg) |
AZI mag (deg) |
Drill Type |
From (m) |
To (m) |
Width (m) |
Sample Type |
Tenement |
|---|---|---|---|---|---|---|---|---|---|---|---|
| GODD032 | 402102.1 | 7851254.1 | 349.4 | -85.0 | 320.4 | RC Pre Collar |
0.00 | 265.0 | 265.0 | RC chips | ML 23969 |
| HQ Diamond |
265.0 | 266.6 | 1.60 | Core | |||||||
| NQ2 Diamond |
266.6 | Currently drilling |
Core |
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The exploration results contained within the above company release are in accordance with the guidelines of The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012).
Section 1: Sampling Techniques and Data – Deep Gecko GODD032 Diamond Drill
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Sampling techniques |
• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. |
• The Deep Gecko exploration target has not been drill tested before and GODD032 is a proof of concept exploration drill hole. • GODD032 is the first hole drilled into the target and at the time of the update release the final target depth had not been reached. • The RC pre collar (0 – 256m) has been sampled and dispatched to the laboratory. • The RC pre collar chips were riffle split on site to obtain 3m composite samples from which 2.5 – 3.0kg was pulverised (at the laboratory) to produce a 25g charge for analysis by Aqua Regia digestion / ICP- MS/OES (Au,Ag,Bi,Cu,Fe,Pb,Zn). • Individual 1m samples are retained on the drill site. • RC samples were collected via a fixed splitter that is mounted to the drill rig under a 900cfm cyclone. • A reprehensive bottom of hole chip sample was also retained in labelled chip trays for reference and dispatched for ASD analysis in Queensland (Evolution mine site). • No diamond core has been dispatched to the lab at the time of writing this release. |
| Drilling techniques |
• Drill type (eg core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc). |
• See Table 1 in the text. • GODD032 has a RC pre collar utilizing a 4.5 inch, face sampling bit. • NQ2core diameter is 47.6mm. • HQ core diameter is 63.5mm. • The core was oriented using down hole core orientation equipment provided by the drilling company. • DDH1 Drilling completed both the RC and diamond (current) drilling using a multipurpose UDR1200 drill rig. • Diamond core and RC recoveries are logged and recorded in the database and considered to be of an excellent standard. • Standard inner tube has been used. • No triple tube has been used on GODD032. • Core from GODD032 exploration target is currently stored on core racks in the Emmerson Tennant Creek core shed and is progressively being geologically logged by company geologists. |
| Drill sample recovery |
• Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. |
• Recoveries are considered satisfactory for both Diamond and RC drilling. • RQD measurements and core loss will be recorded on diamond logging sheets and retained for reference. • RC chiprecoveries are >95%forand there areno |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. |
reported core loss or significant sample recovery problems identified. • Emmerson do not consider that there is evidence for sample bias that may have occurred due to preferential loss/gain of fine/coarse material while drilling the RC pre collar. |
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| Logging | • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged. |
• RC pre collar samples from GODD032 were lithologically logged and have been entered in Emmerson’s relational database. • One metre RC chip intervals are sieved, washed and stored in standard chip trays for later review. • Drill hole logging data is directly entered into field tough book computers via Logchief software. Look up codes and real time validations reduce the risk of data entry mistakes. • Field computer data (the drill log) are uploaded to Emmerson’s relational database whereby the data undergoes a further set of validations checks prior to final upload. • Information on structure type, dip, dip direction, alpha angle, beta angle, texture, shape, roughness and fill material will be stored in the structure table of Emmerson’s database. • RQD logging is underway and records core lengths, recovery, hardness and weathering. |
| Sub-sampling techniques and sample preparation |
• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled. |
• The sample preparation for the GODD032 RC pre collar involves oven drying followed by pulverisation of the entire sample (total prep). • Forty seven (47) riffle split, individual 1m samples have been dispatched to the laboratory based on visual mineralisation. • Intervals are 4-13m (9 samples), 118-141m (23 samples), 160-169m (9 samples) & 220-223m (6 samples). • 1m intervals are pulverised (at the laboratory) to produce a 25g charge for analysis by four acid digest with an ICP/OES (Cu,Fe,Pb,Zn) ICP/MS (Ag, Bi) & FA/AAS (Au) finish (Fire Assay). • 1m intervals sample assay results have not been returned at the time of writing this release. |
| Quality of assay data and laboratory tests |
• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted |
• Field QC procedures involve the use of certified reference material (CRM’s) as assay standards, and include ERM include blanks, duplicates. • QAQC protocols consist of the insertion of blanks at a rate of approximately one in every 40 samples, insertion of standards at a rate of approximately one in every 20 samples and duplicate field sample analysis of at a rate of approximately one in every 20 samples. • Insertion of assay blanks is increased when visual mineralisation is encountered and consists of insertion |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. |
above and below the mineralised zone. • GODD032 RC pre collar field duplicates were collected on the 3m composites samples, using a riffle splitter. • Individual 1m RC sample duplicates are also collected using the same technique. • Laboratory checks include CRM’s and/or in-house controls, blanks, splits, and replicates that are analysed with each batch of samples submitted. These QC results are reported along with sample values in the final analytical report. Barren quartz washes are also routinely used in zones of mineralisation. • QAQC data is uploaded with the sample values into ERM’s database through an external database administrator (contractor). • A QAQC database is created as a separate table in the database and includes all field and internal laboratory QC samples. • QC data is reported through a series of control charts for analysis and interpretation by the Exploration Manager or his/her delegate. • The sample sizes are considered to be appropriate to correctly represent the sulphide_mineralisation at the_ _Gecko Deep exploration target_based on the style of mineralisation (iron oxide copper gold), the thickness and mineral consistency of the intersection(s). |
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| Verification of sampling and assaying |
• The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data. |
• No twin drill holes to Emmerson’s knowledge have been completed. • Selective sampling and re-assay will be undertaken to confirm key assay results. • The geochemical data is managed by ERM using and external database administrator and secured through a relational database (Datashed). • Emmerson’s Exploration Manager has visually verified significant visual mineralisation as reported in the text within GODD032 RC pre collar_._ |
| Location of data points |
• Accuracy and quality of surveys used to locate drillholes (collar and downhole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control. |
• GODD032 was surveyed (set out) using a differential GPS and by a suitably qualified company employee. • Collar survey accuracy is +/- 30 mm for easting, northing and elevation coordinates. • Co-ordinate system GDA_94, Zone 53. • Topographic measurements are collected from the final survey drill hole pick up. • Downhole survey measurements were collected at a minimum of every 18m using an REFLEX EZ-Shot® electronic single shot camera for RC and every 6m for diamond drill holes. • This survey camera equipment is quoted by the manufacturer to have an accuracy of o Azimuth 0-360º ± 0.5ºo Dip ± 90º ± 0.2º• Final collar position will be surveyed on completion of GODD032. |
| Data spacing | • _Data spacing for reporting of Exploration _ | • No analytical resultshave been reportedinthe text. |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| and distribution | Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • _Whether sample compositing has been applied. _ |
• RC sampling is on 1m intervals that may have originally consisted of 3m composites. • Core sampling is generally defined by geological characteristics and controlled by alteration and lithological boundaries. |
| Orientation of data in relation to geological structure |
• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. |
• No previous exploration has been conducted on the Gecko Deep target. • Goanna mineralisation located approximately 800m to the east of GODD032 is very similar in visual nature and geological control. |
| Sample security | • The measures taken to ensure sample security. | • Not relevant for the data reported. |
| Audits or reviews |
• The results of any audits or reviews of sampling techniques and data. |
• An internal review of the historical sampling techniques, QAQC protocols and data collection was conducted by Emmerson from January to March 2013 however was not specific to the GODD032 target. |
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Section 2: Reporting of Exploration Results - Deep Gekco GODD032 Diamond Drill
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mineral tenement and land tenure status |
• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. |
• GODD032 was drilled on granted Mineral Lease ML 23969 which forms part of the Gecko Mine Mineral Lease Group and is owned 100% by Emmerson Resources Limited. . • ML 23969 lies within Perpetual Pastor Lease 946 which is run as Phillip Creek Station. • Land Access to the target is secured through an Indigenous Land Use Agreement with the CLC representing Traditional Owners for the area. • There are no Heritage or Indigenous exclusion zones recorded within ML 23969. • A recent drill rig visit by approximately 25 Traditional owners on Friday 17thJuly, 2015 was conducted. • The tenements are in good standing and no known impediments exist. • Emmerson Resources are in Joint Venture with Evolution Mining. • GODD032 is co-funded as part of the Northern Territory’s “Creating Opportunities for Resource Exploration (CORE) initiative. |
| Exploration done by other parties |
• Acknowledgment and appraisal of exploration by other parties. |
• No exploration has been conducted at this depth. • No exploration or drilling targets the Gecko Deep Exploration Target. |
| Geology | • Deposit type, geological setting and style of mineralisation. |
• Mineralisation within the target area consists of hematite-quartz-magnetite ironstone within talc- chlorite-magnetite-bearing sediments of the Warramunga Formation. • Target style for Emmerson is non magnetic ironstone related iron oxide copper gold. • GODD032 lies within a defined structural corridor known as the Gecko Shear Zone. Mineralisation (Copper and Gold) in the Gecko Shear Zone is associated with ironstone. • The Goanna Copper mineralisation (Emmerson Resources) is visually the same as the reported intersection inthis text. |
| Drillhole information |
• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drillholes: o easting and northing of the drillholecollar o elevation or RL of the drillhole collaro dip and azimuth of the holeo downhole length and interception deptho hole length. |
• All drill hole information is tabulated in Table 1 of the text. • GODD032 has not been completed however Emmerson estimate the final down hole depth will be approximately 1,200m. |
| Data aggregation methods |
• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade results and |
• Visual sulphide mineralisation intersections are reported as down hole lengths and are not true widths. |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearly _stated. _ |
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| Relationship between mineralization widths and intercept lengths |
• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drillhole angle is known, its nature should be reported. • If it is not known and only the downhole lengths are reported, there should be a clear statement to this effect (eg ‘downhole length, _true width not known’). _ |
• GODD032 at the Gecko Deep exploration target is from surface and perpendicular to the interpreted mineralised structure (s). • GODD032 is inclined to the North at -85 degrees to allow intersection angles with the mineralised zones approximate to the true width. • Visual sulphide intersections for GODD032 are shown as down hole lengths and are not true widths. • |
| Diagrams | • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drillhole collar _locations and appropriate sectional views. _ |
• Refer to Figures in body of text. |
| Balanced reporting | • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration _Results. _ |
• Not relevant for the data reported. |
| Other substantive exploration data |
• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating _substances. _ |
• Not relevant for the data reported. |
| Further work | • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. |
• Further work on the Gecko Deep exploration target will involve: • Completion of GODD032 • Down hole geophysical surveys including sonic and VSP methods. • Collection of physical rock property data to assist with future geophysical modelling. • Collection of multi element samples and analysis. • Age dating and thin section collection at various intervals down hole. • Structural logging of GODD032 • Assaying of selected GODD032 diamond drill core. • Further diamond drilling. |
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