Genesis Minerals Progresses Ulysses to Feasibility Study

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THE DRILL SERGEANT: Genesis Minerals (ASX: GMD) is set to commence a Feasibility Study on the development of a long-term standalone underground mining operation at the company’s 100 per cent-owned Ulysses gold project, located south of Leonora in Western Australia.

Genesis Minerals said the decision to move ahead immediately with a Feasibility Study follows the completion of a positive Scoping Study, which confirmed the potential of an underground mine at Ulysses assuming toll treatment of ore as the base case scenario.

The company said drilling had confirmed the Ulysses West shoot has a plunge extent of more than 400 metres and remains open at depth.

Some 4,000 metres of RC and diamond drilling will be carried out to upgrade and expand the current Mineral Resource to a vertical depth of approximately 215 metres below the current open pits.

The resulting updated Resource will underpin the Feasibility Study.

A further 2,400 metres of drilling is planned should the results of this first 4,000m be successful in expanding the Mineral Resource.

“The recently completed Scoping Study has outlined a strong case for the development of an underground mine at Ulysses which we believe represents an attractive opportunity for the company to generate significant cash-flows assuming a toll-treatment scenario,” Genesis Minerals managing director Michael Fowler said in the company’s announcement to the Australian Securities Exchange.

“That said, should we be successful in expanding the Resource outside of the area included in the Scoping Study, there is strong potential for us to consider a much longer life standalone underground mining and processing operation.

“We have therefore decided to move ahead immediately with a Feasibility Study targeting commencement of underground mining in the second quarter of 2018.

“We have also approved an immediate 4,000 metres extensional and in-fill drilling program to a depth of 215 metres below surface to upgrade the Mineral Resource and allow us to move forward with permitting and other pre-development activities.”

Website: www.genesisminerals.com.au