LEONORA NEWLY ACQUIRED GWALIA ASSETS PAYING DIVIDENDS FOR GENISIS 34,066 OZ

The Gwalia gold mine in the Leonora region of WA.

Genesis Minerals produced 34,066 ounces of gold for the September quarter, its first period of operation with its newly acquired Leonora assets.

Genesis formally-acquired the Leonora assets, which includes the historic Gwalia mine and emerging Tower Hill deposit, from St Barbara in July for a cool $635 million. In combination with its own assets, the acquisition gave Genesis 3.1 million ounces (Moz) of reserves and 15.1Moz of resources in the prospective Leonora region of WA.

Genesis delivered gold production of 34,066 ounces (oz) during the September quarter. The gold miner said this sits above the recent 120,000–130,000 pascal (pa) production rate recorded for the Gwalia gold mine on a stand-alone basis.

It also delivered an increase in cash and bullion by about $14 million over the course of the quarter despite spending between $8–10 million on project development at Leonora’s Admiral and Ulysses deposits.

As of September 30, Genesis’ cash and bullion stands at $170 million.

The company is currently fast-tracking the Admiral open pit to supplement the Gwalia underground mine and fill the 1.4 million tonnes per annum Leonora mill.

With the ramping up of Admiral and the new acquisitions under its belt, Genesis hopes to produce at least 300,000 ounces of gold per year in the years to come.

Genesis Minerals managing director Raleigh Finlayson said the company’s first quarter running the Leonora operations made it see strong growth potential for the future.

“Our team has made outstanding early progress towards re-setting Gwalia mine production, adding Admiral ore to fill the Leonora mill and reducing costs,” Finlayson said. “These are all key ingredients in our long-term low-cost growth strategy at Leonora.”

The company is on track to deliver its maiden five-year outlook in March next year.

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