Genesis Minerals Limited (ASX: GMD) has increased the Mineral Resource at its 100%-owned Leonora Gold Project in Western Australia by 409,000oz to 2.0Moz.
Managing Director Raleigh Finlayson said the company expects that the Resource, which comprises 39.3Mt at 1.6g/t, will grow significantly given that the mineralisation remains open in every direction, drilling is ongoing and there is a host of assays pending.
Mr Finlayson said the company had now established genuine scale in the Leonora district.
“Genesis has arrived as a central player in the tier-one district of Leonora,” Mr Finlayson said.
“We have a 2Moz Resource with strong potential to grow it in every direction. We are waiting on several batches of assays and drilling is ongoing.
“At the same time, Genesis is financially robust and we are building a leading team with extensive technical and corporate experience.
“This combination gives us an enviable platform for both organic and inorganic growth.”
The key changes to the Mineral Resources statement (compared to 31 March 2021) are:
• Total Mineral Resources – Increased by 409,000oz (+25%) to 2.0Moz
• Puzzle Mineral Resources – Increased by 251,000oz (+396%) to 315,000oz
• Admiral Mineral Resources – Increased by 103,000oz (+22%) to 562,000oz
• Orient Well Mineral Resources – Increased by 55,000oz (+22%) to 302,000oz
“Post the Kookynie acquisition in June 2020, drilling has focused on Admiral, Orient Well and Puzzle, essentially “forgotten” opportunities with virtually no exploration conducted for ~20 years,” Mr Finlayson said.
“As a result, there has been no drilling at Ulysses over this period, and the Ulysses Resource is unchanged at 838,000oz (including a high-grade component of 363,000oz at 6.4g/t). Ulysses remains open along strike and at depth; extensional drilling will resume in 2022.”
Puzzle update
At Puzzle, the updated Resource includes the inaugural estimate for the April 2021 Puzzle North discovery of 232,000oz. The mineralisation has been interpreted and estimated to an initial depth of only 150m below surface. The mineralisation remains open at depth and over much of the 2.5km strike length of the deposits.
Exploration in 2022 will target depth and strike extensions to Puzzle and Puzzle North, including the untested “Puzzle Gap”.
The length of the Puzzle granite-greenstone contact on Genesis’ tenements now extends to ~10km (after the recent acquisition of another ~4km). Exploration is targeting similar geological settings to the south of Puzzle.
Next Steps
Mr Finlayson said with aggressive drilling continuing, the potential exists for further upside to be unlocked in 2022.
“All existing deposits remain open along strike and at depth. The average depth of drilling at the Leonora Gold Project of ~180m below surface is less than one quarter of the average of peers in the Leonora district.”
Focus points in 2022 include extensional drilling at Admiral, Orient Well, Puzzle and Ulysses. Additionally, with control of more than 40km of strike of highly prospective ground immediately south of Leonora, Genesis has a full pipeline of near-mine and regional exploration targets.
Mr Finlayson said there is significant opportunity for new discoveries, evidenced by the April 2021 discovery of Puzzle North. Focus points in 2022 include:
• Puzzle strike extents (~10km long granite greenstone contact)
• Regional exploration along the 15km long Ulysses-Orient Well trend
• Follow-up exploration activities at the Desdemona South JV with Kin Mining.
For further information please visit: https://genesisminerals.com.au/
