Genesis Minerals receives first payment from Paddington Gold

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Image credit: www.genesisminerals.com.au

Genesis Minerals Limited has reported its first cash payment from Paddington Gold under the toll milling arrangement for ore from its 100%-owned Ulysses Gold Project near Lenora in WA.

Image credit: www.genesisminerals.com.au
Image credit: www.genesisminerals.com.au

The company’s Managing Director Michael Fowler said the initial payment marks another milestone in the successful execution of Genesis’ first toll treatment mining operations, with regular cash receipts now expected every couple of weeks as stockpiled ore is delivered to Paddington for milling.

“Banking our first cheque is obviously a very pleasing milestone, and we now expect a consistent steam of cash inflows every couple of weeks through to the end of February 2017 as deliveries continue to made to Paddington and as higher grade ore is mined from the Ulysses West pit,” Mr Fowler said.

According to him, open pit mining as the Ulysses West pit is progressing as planned with the Company’s Mining Alliance partner, SMS Innovative Mining, making continued excellent progress with the mine plan.

Adertisement

“Our alliance partner SMS, drill and blast contractor Rock on Ground and Genesis personnel have performed extremely well and the operation is progressing swiftly, efficiently and in line with our expectations,” Mr Fowler added.

“We are also pressing ahead with drilling targeting the newly defined gold anomaly at Ulysses East and the recently identified extensions at Ulysses West. Both of these areas offer the potential to repeat or expand the successful Ulysses West open pit toll treatment operation – generating further cash-flow to underpin the Company’s growth.”

The Paddington Mill has received a total of 18,000 tonnes of ore at 2.6 g/t since haulage commenced on 10 November 2016.

The project is expected to generate total estimated free cash-flow of ~$4 to $6 million from the initial Ulysses West operation depending on the gold price at the time of delivery of batches of ore to Paddington.

“With cash now coming in the door from our first mining operation and exploration activity gathering momentum, Genesis is moving towards the end of the year in a strong position – and should be very well placed for growth and success in 2017,” Mr Fowler concluded.