Genesis Minerals picks up Ulysses gold project

THE BOURSE WHISPERER: Genesis Minerals (ASX: GMD) has acquired the Ulysses gold project, located approximately 30 kilometres south of Leonora and approximately 200km north of Kalgoorlie in Western Australia.

The project, which is being acquired from a private party, contains the Ulysses deposit which comes with an estimated Indicated and Inferred Resource of 2.1 million tonnes at 2.1 grams per tonne gold for 138,000 ounces.

The Ulysses deposit was mined by Sons of Gwalia in 2002 producing 24,985 ounces of gold.

Once the acquisition has been done, Genesis said it intends to complete, over the next six months, drilling to upgrade its confidence in the resource, extend the orebody at depth and along strike and undertake a mining study on the deposit.

The company said scoping studies had recently been completed on the current resource, which indicate potential for high-grade open pit development with toll treatment of ore and low capital start-up costs.

The company said believes, subject to the results of an upcoming drilling program and a positive mining study, it can bring the project into production within a nine to 18 months timeframe.

The Ulysses deposit is located on a granted Mining Lease 40/166 close to mining infrastructure, which Genesis considers may allow toll treatment of ore from Ulysses.

“This acquisition, when completed, will allow the company to achieve rapid growth through its strategy of acquiring projects with excellent potential for defining shallow, high-grade gold resources capable of being rapidly and efficiently advanced towards development,” Genesis Minerals said in its AX announcement.

“This complements Genesis’ ongoing strategy at its 100 per cent-owned Viking project to the south where it is drill testing a series of targets for high-grade, shallow gold resources with access to infrastructure and nearby toll treatment options.”