Genesis Minerals Upgrades Gold Deposit as Drilling Commences

THE CONFERENCE CALLER: Genesis Minerals (ASX: GMD) announced that recent drilling of the company’s Ulysses gold deposit has shown a 55 per cent increase in contained ounces and a 31 per cent increase in average grade. By Jack Baker

Genesis Minerals declared the total Ulysses Mineral Deposit now stands at 321,000 ounces of contained gold from 3.3 million tonnes at 3 grams per tonne gold.

The company described the results of its recent drilling program completed over the second half of 2017 as highly successful.

Genesis said the results had confirmed and extended a number of high-grade gold zones estimated at 1.2 million tonnes at 5.5g/t gold for 215,000 ounces.

“The significant gold endowment within these plunging high-grade shoots clearly has the potential to form the core of a significant long-term underground mining operation,” Genesis Minerals managing director Michael Fowler said in the company’s announcement to the Australian Securities Exchange.

“Importantly, we now have a clear understanding of the geometry and controls on the mineralisation, which has allowed our exploration team to focus on the next phase of drilling, set to begin shortly.

“Ulysses is demonstrating all the attributes that we see in many gold systems in the Eastern and North-eastern Goldfields. Put simply, it continues to grow and improve at depth the more we drill.

“We are very excited about the potential to build a very significant gold inventory at Ulysses and we are looking forward to seeing the results from the next round of drilling, which commences later this week.”

The company is commencing 4000 metres of further resource expansion drilling to test potential depth extensions to the Ulysses resource and believe that strong potential exists in the hanging wall to the north of the Ulysses shear.

At the RIU Explorers conference in Fremantle, Fowler elaborated on what the next stage aimed to achieve for the company.

“What we’re looking to do is just expand the current resource between the 100 and 200 reduced level, it’s really just expanding,” he told The Resources Roadhouse.

“We’re really comfortable with what we’ve got in the top 200 metres and we expect it to continue at depth without any issues.

“We’ve done a lot of geological modelling and that shows that mineralisation will extend at depth and there’s no geological reason why that’s not the case.

“We’re pretty confident in being able to significantly expand the resource in the next round of drilling.”