White Devil strikes gold as Emmerson drills deep into royalties, ramps up resource growth and lines up cash flow with Pan African muscle

With rigs spinning, ounces growing, and a royalty revenue stream just months away, Emmerson Resources is showing how lean exploration models can still deliver material upside—especially when paired with infrastructure alignment and a heavyweight JV partner.

Speaking at the RIU Sydney Resources Round-up 2025, managing director Mike Dunbar outlined how the company’s focus on high-grade systems, low discovery costs, and strategic partnerships is driving a return to relevance for the Tennant Creek mineral field.

From underexplored to uncapped: the royalty model in action

Emmerson’s “small mines” strategy is nearing a commercial tipping point. Under its joint venture with Pan African Resources—a $2 billion market cap gold producer—Emmerson is entitled to a 6% gross production royalty from gold processed at the JV-operated Nobles CIL plant, now more than 90 percent complete and targeting first gold this quarter.

The model is simple but powerful: Pan African manages and funds development, while Emmerson remains free-carried. With 200,000 ounces now in JORC-compliant reserves across the JV’s small mines portfolio, that 6% slice translates to around $60 million in royalty income at current gold prices.

Add to that a minimum production payment agreement—equal to 6% of 60,000 ounces over six instalments from April 2026—and the cash inflow climbs by another $18 million.

“We’re free-carried into production and receive an uncapped 6% gross production royalty,” said Dunbar. “That’s one of the highest royalties in the industry.”

 

White devil poised to break out as first major mine

But the real action is at White Devil, a near-mine exploration success that’s now shaping up as the first project to transition from royalty stream to full-scale JV mine.

Since its maiden resource in January 2025, Emmerson has grown White Devil’s estimate by 25% to 611,400 ounces at 4.2g/t, with 87% in the indicated category. Drilling has tested only to 450 metres depth—yet nearby analogues like the Warrego mine extended to over 900 metres.

A 5,000-metre RC drill campaign is due to start within weeks, with drone-based magnetic surveys already underway to guide deeper and lateral targeting.

“We’ve added those ounces at less than $3 an ounce,” said Dunbar. “That’s a remarkable achievement by the exploration team.”

Located just 48km from the Nobles processing facility, White Devil is development-ready from an infrastructure perspective, with permitting expected to be finalised within 12 to 15 months.

Hermitage hints at bigger system beneath

Emmerson’s 100%-owned Hermitage copper-gold project is also gaining momentum. It has returned a series of high-grade intercepts, including:

• 119m @ 3.30% Cu and 0.87g/t Au

• 94.4m @ 2.74% Cu and 5.58g/t Au

• 29m @ 3.33% Cu and 3.86g/t Au

The project remains open in all directions and is fully permitted for further drilling in FY2025. Hermitage is also part of a strategic alliance with CuFe and Tennant Minerals, aimed at scoping a multi-user processing facility for copper, gold, bismuth and cobalt. A scoping study is now in progress.

Rock Wrangler’s take

For mining professionals and field practitioners, Emmerson’s approach offers a case study in how to structure projects that minimise capital risk while maximising optionality. With infrastructure alignment, high-grade resources, and a JV partner capable of delivering plant, funding and production, Emmerson is entering its monetisation era.

Metrics that matter

• JV small mines royalty: 6% gross on 200koz = ~$60 million

• Minimum production payment: ~$18 million starting April 2026

• White Devil: 611koz @ 4.2g/t Au (87% indicated)

• Nobles CIL Plant: >90% complete, commissioning underway

• Hermitage: multiple high-grade Cu-Au hits, 100% Emmerson

• Upcoming: 5,000m RC drilling, scoping study on regional processing hub

“It’s nice to have a big brother working with us,” Dunbar added. “We are very well funded to move forward.”

If White Devil delivers deeper extensions, and Hermitage attracts further investment, Emmerson could find itself evolving from royalty recipient to cornerstone partner in a new NT critical metals precinct.