Geophysics and Drilling Collaboration Final Report for High Definition Magnetic and Elevation Survey (Drone Survey) in the Northern Project Area, Tennant Creek Mineral Field - Lone Star to Billy Boy Area Northern Star to Whippet Area Golden Slipper Area

Abstract

This report provides a summary of the High Definition Magnetic and Elevation Survey (Drone Survey) completed in May 2023 by Emmerson Resources (ERM) and Joint Venture (JV) partner Tennant Consolidated Mining Group Pty Ltd (TCMG) - Tennant Mining on selected areas on the Northern Project Area (NPA) in the Tennant Creek Mineral Field (TCMF). TCMG is a private entity focused on mining and processing in the Tennant Creek Area. The survey was partially funded by the Northern Territory (NT) Government administered by NT Geological Survey under the Resourcing the Territory initiative and the Geophysics and Drilling Collaborations Program (Round 15 2022/23). The TCMF is centered in the town of Tennant Creek, approximately 500km north of Alice Springs. The field was discovered in 1925 and mining until 2005 has produced approximately 157 t of gold, 345,000 t of copper, 14,000 t of bismuth, 220 t of selenium and 56 t of silver from 130 mines with majority of this production being derived from 12 deposits (Donnellan 2013). The increasing scarcity of large near-surface deposits has created demand for new and more sophisticated deep exploration techniques, i.e., 2D/3D seismic surveys and 3D M.I.M. Distributed Acquisition System (MIMDAS) survey. Recent use of unmanned aerial vehicle (UAV)-based geophysical surveys (Drone survey) for land mineral exploration are opening extraordinary opportunities in providing high-resolution definition of geologic structures, subsurface mapping and for direct targeting of mineral deposits. In 2021, Emmerson Resources Ltd completed an ultra-high resolution drone magnetics for the first time in the TCMF flown by Airborne Geo Exploration Pty Ltd (AirGeoX). Four (4) areas have been flown in the southern area: a) Chariot to TC8 Corridor (Wineline), b) Eldorado to Comstock Corridor (Nobline), c) Peko to Golden Forty Corridor, and d) Mauretania. Preliminary results and comparison with the new data of the ultra-high resolution drone magnetics versus the 1984 Aeromag flown by Aerodata have shown that the data acquired from the drone survey represent the highest quality/highest resolution magnetic data ever acquired at the TCMF in the last 90 years. Noting that the lines spacing from the drone survey is 10m and 20m, with sensor height of 15m/25m. The drone magnetic survey is highly successful 'proof of concept' in delineating the Mauretania deposit. This recent result has expanded the development and exploitation of new exploration search space and will possibly lead to a new wave of discovery in the TCMF. From the success of the first drone survey in TCMF south, the following areas were flown in the northern area: 1) Lone Star to Billy Boy, including Explorer 195 (Exp 195); 2) Northern Star to Troy and Edna Beryl to Whippet; and 3) Golden Slipper to Queen of Sheba. These sites host gold +/- copper mineralisation in hematite dominant ironstones. The aims of the ultra-high-resolution survey are to: a) provide high-resolution definition of geologic structures and subsurface mapping, and to be able to rapidly identify/define more accurately the subtle structures controlling the mineralization (D3/D4 structures); b) identify extent of known mineralization; c) identify/delineate small-scale magnetic features that may arise from the variation in distribution of magnetite versus hematite within both barren and mineralised ironstone occurrences; d) provide focused drill targeting of potential mineral deposits. The result from the proposed drone magnetic survey will greatly improve the targeting of Emmerson and JV partner TCMG in looking for shallow high-grade gold that can be easy to develop in the TCMF. Emmerson engaged AirGeoX to conduct the aerial drone survey. Acquisition of the data has been designed using 20m traverse line spacing, with 200m tie line spacing and a nominal flying height of 20m, with a total line kilometer of 10,454.74 completed.