Updated Resource Celivers 26% Increase In Contained Ounces
Genesis Minerals Limited (ASX: GMD) has taken another important step towards its objective of developing a significant new Australian gold mine at its 100%-owned Ulysses Gold Project near Leonora in Western Australia, with an updated Mineral Resource Estimate that delivers a 26 per cent increase in contained ounces to 1,608,000oz of gold.
The updated Mineral Resource incorporates the results of the highly successful drilling programs completed at the Ulysses Project over the second half of 2020 following the acquisition of the Kookynie tenements.
The updated Measured, Indicated and Inferred Mineral Resource now totals 27.3Mt @ 1.8g/t gold for 1,608,000 ounces of contained gold, which represents an increase of 327,000 ounces over the previous June 2020 Mineral Resource.
Managing Director, Michael Fowler, said that importantly, the higher-confidence Measured and Indicated component has increased by 237,000 ounces (32%) to 984,000 ounces, with this component of the Resource available for conversion to Ore Reserves following the completion of mining studies.
“This is a result that confirms the scale and quality of the Ulysses Project, reflecting the outcomes of the highly-successful drilling programmes completed over the expanded project area over the past six months. It’s been a fantastic effort and I would like to thank and commend everyone involved on delivering this result,” Mr Fowler said.
“The updated Mineral Resource will now form the foundation of our ongoing Feasibility Study on a standalone gold project at Ulysses, which is on-track for delivery next Quarter and is expected to potentially comprise both an open pit and underground mining operation.
“We were very pleased to see a strong increase in the Measured and Indicated components of the Resource, which now total 984,000 ounces, providing a strong foundation from which to deliver our maiden Ore Reserve. This Resource will continue to be updated, with strong growth potential. Drilling is continuing and a further update is expected late this year.
“This puts Genesis firmly on track to become a substantial player in the mid-tier gold space, and we are looking forward to adding further significant value to the Ulysses Project over the coming months and ultimately advancing it towards development and production.”
The total combined Mineral Resource for the Admiral-Butterfly-Clark (“ABC”) Group deposits has increased by 87% (213,000 ounces) to 10.3Mt @ 1.4g/t Au for 459,000 ounces.
The 2020 drill programme was successful in confirming historical drilling data and the continuity of mineralisation, as well as upgrading parts of the Inferred Resources for the Admiral, Butterfly and Clark and deposits. Drilling also extended the limits of those deposits.
The combined Admiral, Butterfly and Clark Resource has increased from 245,000 to 339,000 ounces, a 39% increase in contained ounces. Importantly the Measured and Indicated categories have increased by 59,000 ounces from 137,000 ounces to 196,000 ounces for these three deposits, with the grade remaining steady.
Initial Resources were estimated for the King, Danluce and Butterfly North deposits and have been included in the combined shallow Resource. The inclusion of the King, Danluce and Butterfly North Resources has added 121,000 ounces to the total Mineral Resource.
All Resources remain open, and drilling programmes will continue throughout 2021 targeting extensions to all Resources as well as new near-mine discoveries.
