PERTH (miningweekly.com) – Analysis of new geological data and mineral potential assessment has found that an area east of Tennant Creek, in the Northern Territory, could hold mineral deposits worth some A$12.4-billion, federal Resources Minister Keith Pitt said on Wednesday.

The data and assessments were collected as part of the government’s A$225-million Exploring for the Future programme.

“This programme has a strong focus on boosting investment in the resources sector, generating jobs and maintaining a strong economy,” Pitt said.

“The data shows that the key to economic growth in the Northern Territory will be investing in its gas and resource potential. This analysis by ACIL Allen estimates the overall direct net economic benefit from exploration in the East Tennant area could be around A$638-million,” he said.

Detailed data collected in the East Tennant area suggests it could host a new mineral deposit with characteristics similar to those of Ernest Henry near Mount Isa, one of the largest copper-gold mines in Australia.

Geoscience Australia, in collaboration with the Northern Territory and Queensland geological surveys, identified the region’s potential through a range of activities undertaken between Tennant Creek and Mount Isa.

Pitt said the East Tennant area was just one promising example of resource potential uncovered by the programme between Tennant Creek and Mount Isa.

“Based on data collected by Exploring for the Future, oil and gas company Santos has committed A$95-million to exploration in the South Nicholson basin, on the border of the Northern Territory and Queensland, through a farm-in with Armour Energy," he said.

“Understanding the resource potential of these underexplored areas of Australia is key to continuing our economic success story and supporting the recovery post Covid-19. The data and information collected by the programme will support and de-risk resource decision-making, investment and jobs creation for years to come.

“The government believes the resources sector will be a key driver of supporting the economy post Covid-19, so the success of the Exploring for the Future programme and realising the resource potential in regional areas is an important component of ensuring the mines and ultimately jobs of the future.”