Genesis Minerals Limited has successfully started transportation of gold ore from its 100%-owned Ulysses Gold Project near Leonora in Western Australia.
The company will receive its first cash payment under the toll milling arrangement.
After the mining equipment was mobilised in early October, open-pit activities at the Ulysses West site have advanced rapidly. Genesis’s mining alliance partner SMS Innovative Mining Pty Ltd has also made substantial progress with the mine plan.
Genesis expects to complete current mining activities before Christmas.
Currently, gold ore is mined from the 390m reduced level (RL) with 16,000t of ore available on the run-of-mine stockpile.
The first haulage of 8,500t of ore consisted of 2.5g/t Au, which is being transported to the Paddington Mill by road. Transportation started last week.
Haulage will be processed under Genesis's toll milling agreement with Paddington Gold Pty Ltd.
The first payment is expected within three weeks. The company is scheduled to perform a shipment of approximately 10,000t to Paddington within the next two months.
It is estimated that the project will generate a free cash-flow of between $4m and $6m from the Ulysses West operation, based on prices of gold at the time of batch delivery to Paddington.
Genesis managing director Michael Fowler said: “SMS and Genesis personnel have been doing a fantastic job and should be commended for their efforts in delivering the first parcel of production ore from Ulysses West only five weeks after the commencement of mining.
“First cash-flow from Ulysses represents an important achievement for Genesis, helping to underpin our next phase of growth and development initiatives.
“Early results from our ongoing exploration programmes both at Ulysses and at the highly prospective Viking Project near Norseman have been very encouraging, with the latest results from Ulysses defining a large, coherent gold anomaly immediately east of the existing resource area.
“With production now well underway at Ulysses, the company has strong ongoing funding in place to advance exploration across both of our key project areas to deliver on our objective of becoming a significant Western Australian gold producer.”
Image: Ulysses open-pit floor. Photo: Courtesy of Genesis Minerals.