Emmerson Resources (ASX: ERM) has announced the completion of a positive scoping study for its White Devil Gold Project, confirming its status as a Major Mine Deposit under the joint venture agreements with Tennant Mining, a subsidiary of Pan African Resources. Emmerson Resources is actively exploring the Tennant Creek Mineral Field, one of Australia’s highest-grade gold and copper fields. The scoping study demonstrates the project’s potential viability, paving the way for a feasibility study expected to be completed in the first half of FY26.
The scoping study highlights a high conversion rate of the Mineral Resource into conceptual mine designs, with open pit designs containing 379,000 ounces of gold and underground designs containing 100,500 ounces. The study indicates that the project is relatively insensitive to gold price fluctuations, with designs optimised using a conservative A$4,000 per ounce gold price. The study outlines a 7-year operation processing an estimated 4.2 million tonnes at 3.6 g/t gold through the Tennant Mining owned Nobles CIL processing plant at a rate of 650,000 tonnes per annum, to produce an average of 64,000 ounces per annum.
Key outcomes from the scoping study include a low pre-production capital cost of $11.8 million, competitive all-in sustaining costs (AISC) around A$2,050 per ounce, and a strong positive net present value (NPV) at both the assumed base case (A$5,000/oz) and conservative (A$4,000/oz) gold prices. The company currently has $6.2 million in cash and anticipates receiving approximately $18 million in the second half of FY26 from agreed minimum production payments from Tennant Mining, which is expected to fund future studies and its share of exploration and development activities.
Emmerson Resources Managing Director, Mike Dunbar, expressed enthusiasm for the scoping study results, noting the potential for strong financial returns at gold prices well below the current spot price. Feasibility study activities have commenced, including geotechnical drilling to increase confidence in pit wall angles. The company believes it has a reasonable basis for providing forward-looking statements and expects to be able to fund the project’s development.
