Emmerson Resources Ltd (ASX:ERM)
has declared the start of gold production at the CIL gold processing plant owned by their joint venture partner Tennant Mining, which has an annual capacity of 840,000 tons in the Northern Territory.
The production at this facility – situated 14 kilometers southeast of Tennants Creek – primarily revolves around deposits owned by Tennant Mining, a subsidiary of Pan African Resources (AIM: PAF).
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So far, the timing of any further processing of deposits covered by the JV has not been established, which could affect royalty payments.
Emmerson highlighted that if Tennant did not manage to generate 60,000 ounces from the joint venture properties by mid-May 2026, they would have to make Minimum Production Payments. These payments would equate to a 6% gross production royalty based on whatever amount fell short of the target (specifically, this refers to the difference between 60,000 ounces and the actual quantity of gold extracted from the joint venture areas).
The smallest anticipated reduction in production is estimated to fall within the range of 57,500 to 60,000 ounces, contingent upon the output reached from mid-March through mid-May 2026. Consequently, around $18 million will become due to ERM, scheduled for disbursement across multiple installments stretching from April to August 2026.
Mike Dunn, the managing director of Emmerson, extended his congratulations to both the Tennant Mining and Pan African Resources teams on achieving commercial gold production at the site.
“To reach the milestone of commercially producing gold merely four and a half years after signing an exploration joint venture agreement with Emmerson and acquiring several additional leases under their own name in the Tennant Creek region is truly remarkable,” he stated.
We’re excited about collaborating with the larger group as we advance the joint venture.
Gold deposits will be explored over the next few years, and we anticipate receiving the 6% uncapped gross gold production royalty from the Small MinesJV deposits.”
After the announcement, Emmerson’s share price increased, and by 12:25 AEST, they were being traded at 13.2 cents – showing an uplift of 1.92% from the opening bell.
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