PERTH (miningweekly.com) – ASX-listed Emmerson Resources has struck a deal with Territory Resources to develop a Tennant Creek processing hub in the Northern Territory.

Emmerson has agreed to sell its Warrego Mill lease to Territory to construct and commission a central processing facility with a proposed capacity of 300 000 t/y that will be the hub for feed from Emmerson’s small mines, which would have priority over third party ores.

First gold production from the processing facility is targeted for late 2018, subject to the necessary regulatory approvals.

Territory will pay an initial A$100 000 deposit to Emmerson, with further payments subject to final negotiations and the transfer of liabilities.

Territory will also assess Emmerson’s small mines for future mining and processing on a profit share or royalty basis, with the company to enter into an earn-in and potential joint venture (JV) over Emmerson’s southern tenements, subject to the two companies reaching commercial agreements.

The southern tenements is the most gold endowed portion of the Tennant Creek mineral field, and contains the historical Nobles Nob and Juno deposits, which are owned by Territory, as well as gold tailings from these projects, which will provide a source of feed to the central processing facility.

Under the proposed earn-in and JV, Emmerson will conduct exploration aimed at making further discoveries or extensions to these historic mines.

Emmerson MD Rob Bills said on Thursday that the development of a modern, centralized processing facility was a major step forward in establishing an integrated exploration, mining and processing hub in the Tennant Creek mineral field.

“This is something Emmerson has been championing for some time as it has the potential to unlock stranded gold assets in the region and is consistent with our strategy of monetizing our smaller, high grade resources.”

Bills said that it would generate additional funding for Emmerson’s exploration programmes, which was aimed at discovering high-grade gold, copper and cobalt, similar to the Edna Beryl and Jasper Hills discoveries.