Genesis Minerals Ltd’s (ASX:GMD) has received the final regulatory approvals to commence mining at the Ulysses Gold Project near Leonora in Western Australia.
The approvals have paved the way for open pit mining operations to commence later this month.
The first ore is expected to be delivered to the 3.5 million tonnes per annum Paddington gold plant by mid-October under the toll milling agreement with Paddington Gold Pty Ltd.
Genesis anticipates first cash-flow by early November, with the mining operation forecast to generate free cash-flow of about $6 million in 5 months from the Ulysses West pit (based on gold price of A$1750 per ounce).
The maiden ore reserve at Ulysses West is 74,000 tonnes at 4.1g/t gold for 9,700 ounces gold.
Importantly, the operation is expected to have an all in sustaining cost of A$1,060 per ounce of gold with pre-production capex of only $350,000.
Mining contractor SMS Innovative Mining Pty Ltd will provide funding to support the project development, with an initial subscription of Genesis shares worth $2.5 million at $0.025 each.
The cash-flow generated at Ulysses will underpin Genesis’ strategy to ramp-up exploration activities both at Ulysses and the Viking project in the Albany-Fraser Province, Western Australia.
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