What it means is that ERM has to march to the beat of the drum played by EVN with regard to the Tenant Creek JV. That has pros and cons of course.
The main pro is that ERM doesn't have the costs for exploration expenses to meet. The 2 main cons are:
1. The exploration program for the encouraging IOCG discovery at Edna Beryl is at the mercy of the EVN budgeting process.
2. The Tribute payments forth coming from the small mines program must be shared with EVN.
However, the big kicker announcement we all await are the assay results of the recent drilling program at Kadungle. They are due any tick of the clock now. We already know ERM has discovered a large mineralised field containing both porphyry and epithermal Au and Cu targets. The $60m question now is how good will this discovery prove up to be? That is the big risk/big reward situation with ERM at this moment in time.
Cheers
ERM Price at posting:
7.8¢ Sentiment: Buy Disclosure: Held
