The final approvals have been secured by Emmerson Resources, with project partner Evolution Mining, from the Northern Territory Government to launch production at the Edna Beryl gold operation in the Tennant Creek area.
Edna Beryl Mining Company, which Emmerson described as an operator specialising in small mines, will mine under a ‘tribute agreement’ at the Edna Beryl, which is the Northern Territory’s first new gold mine in more than a decade.
Edna Beryl is becoming a high-grade prospect with the first 600 tonnes of development ore averaging to 40 grams a tonne of gold.
Drilling in 2016 by Emmerson revealed that the mining activities will be undertaken in shallow mineralisation as the drilling opened the possibility of either expanding the current mining area or expanding to a larger scale development if the next round of drilling is successful.
Managing director for Emmerson Resources, Rob Bills, said that launching the production of the Edna Beryl was a pivotal step for the company which has been exploring the Tennant Creek mineral field since 2008.
“It not only provides a revenue stream but establishes a template for unlocking value in many of our other projects contained within our extensive 3000 square kilometre tenement package,” Bills said.
“We believe this tribute style of agreement maximises value and mitigates risk whilst providing great insights for our near mine and regional exploration programs.”
There are several advantages to the tribute agreement according to Emmerson, including a risk-free income stream from its non-core assets via a royalty agreement that is proportional to the gold extracted.
The NT Government is provided with a launching pad from the Edna Beryl mine as it progresses a feasibility study into the development of a common user mine and processing facility at Tennant Creek.
“There is strong competition between Australian states and territories to attract the mining dollar and the opportunity to trim costs by using a common processing facility could make all the difference to where that dollar is spent.” The association of Mining and Exploration Companies (AMEC) CEO Simon Bennison said.
“The investment will help further development of the mining and mineral exploration industry in the Tennant Creek region,” said Ken Vowles, the NT minister for primary industry and resources.
“The cyclical nature of the industry means that investing in mineral exploration now is vital to ensuring the discoveries that will become the mines of tomorrow are made.” Vowles said.
Receive the latest industry news and project updates straight to your inbox by subscribing to the PlantMiner newsletter today.
Source: Australian Mining