THE BOURSE WHISPERER: Genesis Minerals (ASX: GMD) has struck a Memorandum of Understanding (MoU) with Eastern Goldfields (ASX: EGS).
The deal is in regards to the toll treatment of high-grade gold ore from former’s 100 per cent-owned Ulysses gold project, located between Leonora and Kalgoorlie in Western Australia).
The MoU will result in batch treatment of the Ulysses ore at the Davyhurst Mill located approximately 135km by road to the south of the project.
The agreement rests on a few conditions, namely the completion of a mining study on the 151,000 ounce Ulysses gold Resource by Genesis; the re-commissioning of the Davyhurst Mill; and commencement of production by Eastern Goldfields at the Davyhurst project.
The company’s anticipate the Davyhurst Mill will be operational in the December 2016 quarter.
As part of the MoU, the two companies will also be considering ways to co-operate that will be mutually beneficial in terms of future processing and exploration of the tenement position Genesis holds in the district.
“The signing of an agreement with Eastern Goldfields for the potential treatment of ore at Davyhurst is an extremely positive step forward for the company and gives us an attractive option to start treating our ore in the second half of this year,” Genesis Minerals managing director Michael Fowler said in the company’s announcement to the Australian Securities Exchange.
“We look forward to working with Eastern Goldfields to extract significant value from Ulysses.”