Updated February 2018
Genesis Minerals Limited is an Australian gold exploration and mine development company with high quality projects located in Western Australia’s premier gold districts. The Company is focussed on cash-flow, exploration and growth underpinned by projects located in Tier-1 jurisdictions (Figure 1).
Ulysses Gold Project
The Ulysses Project (“the Project” or “Ulysses”) is centred about 30km south of Leonora and 200km north of Kalgoorlie in Western Australia.
Ulysses is located in the minerals rich and highly prospective Eastern Goldfields of Western Australia. It is located 30km south of the Sons of Gwalia (6Moz of Production and 1.8Moz Reserve) mine and along strike of Orient Well and Kookynie mine camps which have produced over 0.7Moz (see Figure 2). It is close to world leading mining infrastructure which will potentially allow toll treatment of ore from Ulysses.
The Ulysses Deposit was mined by Sons of Gwalia in 2002 producing 266,358 t @ 2.92 g/t Au for 24,985 Oz Au. Ore was treated at the Gwalia Treatment plant.
Genesis acquired Ulysses in 2015 and following exploration success, the Company completed two open pit mining campaigns at the Ulysses West Pit in 2016 and 2017. Ore from Ulysses West was processed under a toll treatment arrangement at the Paddington Mill located 160km south of Ulysses along the Goldfields Highway.
Ulysses Resource Depth Extensions – Targeting Long Term Underground Gold Mine
Figure 3: Ulysses Mineral Resource (blue outline) with the high-grade portion of the resource showing in magenta. Area to be systematically drill tested highlighted.
Figure 4: Plan view of the location of the Ulysses Mineral Resource projected to surface. The Mineral Resource outline is shown in blue.
Figure 5: View (from position of red arrow in Figure 4) looking towards the south east showing the position of the modelled high-grade shoots.
Drilling below the existing Ulysses and Ulysses West open pits has been very successful in identifying a number of high-grade gold zones (shoots). These high-grade gold shoots have significant plunge extents (Ulysses West +320m, Ulysses Central +290m and Ulysses East +330m) and, importantly, are all open at depth having so far only been drilled to ~200m below surface (see Figure 3) – providing significant upside potential for further Resource growth.
The Mineral Resource extends for over 1,500m of strike and sits immediately below and along strike of the Ulysses Open Pits (see Figures 4 and 5). The Resource is estimated to an average depth of ~200m below surface and has a gold endowment of +1,750 ounces per vertical metre (ovm) for the 160m interval from the 350mRL base of the open pits to the base of the resource.
Drilling programs are ongoing at Ulysses with the objective of defining a new standalone gold mining and processing operation.
Mineral Resource Estimate
Ulysses has a Measured, Indicated and Inferred Mineral Resource of 3.3 million tonnes at an average grade of 3.0g/t for 321,000 ounces of contained gold. The high-grade shoots which form part of the overall Mineral Resource are estimated to contain 1.22Mt @ 5.5g/t gold for 215,000 ounces. The Ulysses West shoot has an estimated grade of 8.5g/t gold. The Mineral Resource remains open at depth.
A summary of the 2018 Ulysses Mineral Resource is shown in Table 1 below:
|Type||Tonnes (t)||Au Cut (g/t)||Tonnes (t)||Au Cut (g/t)||Tonnes (t)||Au Cut (g/t)||Tonnes (t)||Au Cut (g/t)||Cut Ounces|
NB. Rounding differences may occur.
Full details of the Mineral Resource estimate are provided in the Company’s ASX Announcement dated 21 February, 2018.
Drilling by Genesis has been successful in confirming the presence of an extensive, coherent gold anomaly at Ulysses East, immediately to the east of the existing Ulysses Gold Resource (see Figure 6).
Orient Well NW Prospect
Drilling has been completed at the Orient Well NW prospect, located ~10km east of the Ulysses Resource, targeting a similar structural position to Ulysses but on the eastern side of the Ulysses-Orient Well mineralised corridor, in the zone where the east-west trending stratigraphy changes orientation to ESE/SE (as opposed to the Ulysses area where it changes to a WNW/NW trend).
The intersections highlight the significant potential to define a large, gold mineralised system at Orient Well NW. Mineralisation is hosted within a highly weathered and foliated felsic unit with quartz veining and iron oxide after sulphide.
The style of mineralisation has similarities to the Orient Well deposit located about 2km to the south-east. The orientation and geometry of the mineralisation is unclear but a NW trend to the overall strike of the mineralisation is interpreted. The Orient Well NW prospect sits in a similar structural position to Ulysses (see Figure 6).
Ulysses North and NW Prospects
Genesis has completed wide-spaced aircore drilling at several new areas including Ulysses North, located immediately north of the Ulysses Resource, and Ulysses NW, located ~4km north-west of the Ulysses Resource. Drilling has successfully intersected mineralised zones (see Figure 6).
Barimaia Gold Project
Figure 8: Bedrock drill targets in the McNabs and McNabs East area. Porphyry extension target areas within white dashed outlines.
In September 2017, Genesis acquired the rights to the highly prospective Barimaia Gold Project (“the Project” or “Barimaia”), located in the Murchison district of Western Australia, opening up an exciting new front for its gold exploration and growth activities.
Genesis holds 100% of Metallo Resources Pty Ltd (Metallo) which holds the right to earn-in to an initial 65% interest in the Barimaia Gold Project (the Mt Magnet JV), with the potential to earn up to a maximum 80% stake.
The Company considers the Barimaia Project to offer the potential for the discovery of large, low strip ratio porphyry-hosted gold deposits.
The Project’s close proximity to Mt Magnet and the various gold processing facilities in the region provides a potential low-cost pathway to production should an economic discovery be made.
Drilling completed by Genesis and previous explorers identified three large bedrock gold targets associated with the McNabs porphyry system, as well as confirming an extensive area of anomalous gold mineralisation over a 1.0km x 1.5km area centred on the McNabs and McNabs East Prospects.
Barimaia is a low-risk opportunity to assess a highly prospective ground package in close proximity to a major producing gold mine. Genesis is focussed on defining shallow gold resources capable of being rapidly and efficiently developed.
Viking Gold Project
The Viking Gold Project (“the Project” or “Viking”) is located approximately 600km east of Perth and 30km south east of the town of Norseman in Western Australia.
Viking is close to existing under-utilised gold mills and mining infrastructure and Genesis is focussed on defining shallow gold resources capable of being rapidly and cheaply advanced towards development.
Genesis purchased Viking from AngloGold Ashanti Australia Limited in 2014. The Project comprises a significant landholding in the Proterozoic Albany-Fraser Orogen (“AFO”) and adjoining eastern margin of the Archaean Yilgarn Craton in what is considered an emerging mineral province that has delivered the Tropicana gold and Nova-Bollinger nickel discoveries.
Drilling by Genesis at the Beaker 2 Prospect has defined a Resource Target Zone extending over a strike length of 500m and a width of 100m. Importantly, all of the mineralisation intersected at the Beaker 2 Prospect to date occurs in the oxide (supergene zone). The potential for a primary mineralisation source remains to be tested, and this remains an exciting opportunity for the Company. A +1.5km long aircore defined gold anomaly remains to be drill tested.
Viking is an exciting greenfields opportunity and offers the potential to define a large oxide gold zone associated with a high-grade vein system.
Competent Persons Statements
The information in this report that relates to Exploration Results is based on information compiled by Mr. Michael Fowler who is a full-time employee of the Company, a shareholder of Genesis Minerals Limited and is a member of the Australasian Institute of Mining and Metallurgy. Mr. Fowler has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Fowler consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The Information in this report that relates to Mineral Resources for the Ulysses Project is based on information compiled by Mr Paul Payne, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Payne is a full-time employee of Payne Geological Services and is a shareholder of Genesis Minerals Limited. Mr Payne has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Payne consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.