Emmerson Resources Limited (ERM) has signed a heads of agreement deal to form the Rover Farm-in and Joint Venture for Adelaide Resources Limited’s Rover copper-gold project.
The project consists of two tenements, ELs 27372 and 27292, which are owned by Adelaide Resources and located 85km south-west of Tennant Creek in the Northern Territory.
The field is known to contain copper-gold deposits similar to those found in the Tennant Creek Field.
Under the agreement, ERM can earn 51% interest in the project by funding $2m in exploration within three years. After earning its 51% interest, ERM can choose to either terminate the exploration funding or enter the joint venture.
If ERM selects to continue funding exploration, it can earn an additional 24% interest by spending another $2m in the subsequent three years.
During the initial $2m farm-in stage, ERM will manage and operate the Rover Farm-in and Joint Venture.
ERM is also required to fund $500,000 in the first year. If it fails to provide the initial fund of $2m by the third anniversary, then it will be deemed to have withdrawn from the project.
In 2005, Adelaide Resources acquired the Rover project tenements from a subsidiary of Newmont Mining. Since then, it has completed a comprehensive exploration and discovered copper and gold at the Rover 4 and Rover 1 prospects.
Emmerson Resources owns around 2,500km² of ground in the Tennant Creek Field, as well as a gold mill in the region.
Gold and copper mining started at Tennant Creek in the 1930s after its discovery. In Rover Field, gold and copper were discovered in 1970s after Peko Mines drilled a series of magnetic anomalies and intersected mineralisation.
Image: Rover project location plan. Photo: Courtesy of Adelaideresources.com.au.