Shares in Genesis Minerals (ASX:GMD) were trading as much as 30.8% higher today after the explorer posted high-grade gold drilling results at the Ulysses project in Western Australia.
Maiden resource definition drilling at the site south of Leonora confirmed the continuity of a resource base of 138,000 ounces of gold and is expected to add significantly to the value of the company in the short term.
Genesis stock was last trading 15.4% higher on the news at A$0.015.
Initial results included 4 metres at 15.0 g/t gold, 11 metres at 7.2 g/t gold and 5 metres at 5.0 g/t gold.
The drilling focused on previously untested zones along strike and at depth, with additional intercepts including 8 metres at 4.0 g/t gold, 7 metres at 4.1g/t gold and 3 metres at 7.6 g/t gold.
Mineralisation is associated with a shear zone known to extend for over 1.5 kilometres.
Depth of complete oxidation is about 30 metres with depth to fresh rock about 45 metres.
Although no active work has been undertaken at Ulysses since 2004, the latest results provide encouragement that the historical data can be relied upon as a basis for the feasibility work underway and on track for completion by the end of the year.
With a number of gold plants located in close proximity to Ulysses, Genesis is expected to be able to commercialise the project in short order for a low capital cost.
Genesis is targeting production and first cashflow from Ulysses in 2016 with a mining study on the viability of an open pit operation to be finalised by the end of calendar 2015.
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