Genesis Minerals Limited has issued its quarterly report for the March quarter, saying development efforts on the high-grade Ulysses mine at the Leonora Gold Project have commenced.
Development efforts include the cutback of the Ulysses West pit to establish portal and vent rise locations in preparation for underground mining starting in the September quarter.
The company said it would continue shallow-grade control drilling activities to future-proof the first two or more years of mine life.
Key activities for Ulysses during the current quarter include the commencement of surface infrastructure construction, the completion of the Ulysses West Pit cutback, and the completion of the underground mining contract and power tenders.
Genesis Mining Services, the company’s in-house open pit mining contractor, will conduct mining activities at the Admiral open pit starting in the September quarter.
In line with its business development efforts, Genesis entered into a binding agreement with St Barbara during the quarter to acquire the latter’s Leonora assets in Western Australia (WA).
A $470 million two-tranche placement will support the asset purchase, which will create a new Australian gold company that focuses on the Leonora district.
The purchase is expected to be completed by late June or early July under the current transaction timetable.
Following the transaction, Genesis plans to grow sustainable, high-quality production exclusively in the Leonora district, funded by the proceeds from the placement and operating cash flows.
Genesis Managing Director Raleigh Finlayson said the combination of St Barbara’s Leonora assets and Genesis’ neighbouring portfolio make perfect sense.
“Long life production growth to 300,000 ounces per annum, along with the significant unique synergies, places the proposed Leonora combination in an enviable position,” Finlayson added.
He noted that the company is also pleased to report its progress at the Admiral open pit, with mining set to commence starting in the September quarter.
