The Project is centred approximately 30km south of the town of Leonora and approximately 200km north of Kalgoorlie in Western Australia. The Project contains the Ulysses Deposit which has an estimated Indicated and Inferred Resource of 2.1 mi l l i on tonne s at 2.1g/t gol d f or 138,000 ounces.
The Ulysses Deposit was mined by Sons of Gwalia NL ("SGW") in 2002 producing 24,985 ounces of gold.
SGW elected to cease mining following the initial production of 266,000 tonnes at 2.9 g/t gold from a shallow open pit due to the prevailing gold price and a 4.75% roy alty (which has since been extinguished ) becoming payable after the production of 25,000 ounces to SGW’s joint venture partner at the time.
Upon completion of the acquisition Genesis intends to complete , over the next 6 months , further drilling to upgrade the confidence in the resource , extend the ore body at depth and along strike and undertake a mining study on the deposit.
Recent scoping studies undertaken on the current resource indicate the potential for high – grade open pit development with toll treatment of ore and low capital start – up costs.
The Company believes that subject to the upcoming drilling program and a positive mining study the Project can be b rought into production within a 9 to 18 months timeframe. The Ulysses Deposit is located on the granted Mining Lease 40/166 and there are no obvious impediments to mining. The Project is close to mining infrastructure which may allow toll treatment of ore from Ulysses.
This acquisition, when completed, will allow the Company to achieve rapid growth through its strategy of acquiring projects with excellent potential for defining shallow, high – grade gold resources capable of being rapidly and efficiently advanced towards d evelopment. This complements Genesis’ ongoing strategy at its 100% owned Viking Project to the south where it is drill testing a series of targets for high grade, shallow gold resources with access to infrastructure and nearby toll treatment options.
