Genesis Minerals Ltd (ASX:GMD) has confirmed the presence of a substantial gold system at its recently-optioned Barimaia Gold project in the Murchison region of Western Australia.
The company’s shares closed circa 13% higher on Monday, at $0.017.
Genesis’ final assay results from the drilling program returned thick high-grade gold intercepts including:
- 17 metres at 3.36 g/t gold from 49 metres; and
- 9 metres at 18.8 g/t gold from 75 metres.
Plans to start systematic reverse circulation drilling program in September
The drilling identified three large bedrock gold targets, and confirmed a 1-kilometre by 1.5-kilometre zone of anomalous gold mineralisation centred on McNabs and McNabs East areas.
Importantly, both the anomalous gold zones and the targeted porphyry host rock which hosts the high-grade mineralisation remain open in all directions.
As per the agreement, Genesis had to spend a minimum of $140,000 on the “proof-of-concept” exploration program, after which it can elect to acquire the project for $250,000.
Genesis is expected to proceed with the option to acquire Barimaia and to commence a second phase of drilling at the project next month to further expand the mineralisation.
The acquiree company, Metallo Resources Pty Ltd, holds the right to earn-in to an initial 65% interest in the Barimaia Project, with the potential to earn up to a maximum 80% stake.
Genesis is planning to commence a systematic reverse circulation drilling program in September to test the three gold targets identified to date.