Genesis Minerals has received binding commitments to raise $5 million to pursue exploration and a feasibility study at its Ulysses gold project, 30km south of Leonora in Western Australia.

The proceeds will be used to fund an aggressive 30,000m, staged drilling program and feasibility studies at Ulysses, where the company recently announced an upgraded mineral resource of 3.3 million tonnes at three grams per tonne gold for 321,000 ounces of contained gold.

 

Drilling will be focused on four high-grade mineralised shoots that sit below the current Ulysses resource area and other potential high-grade shoots along strike to the east. 

Results of up to five metres at 20.9 grams per tonne gold have been returned from the current phase of drilling confirming mineralised extensions and demonstrating significant plunge extents.

The Company said it was targeting significant increases to the Ulysses mineral resource, with the aim of developing a significant standalone gold project.

“Investors can look forward to strong news-flow in the weeks and months ahead,” Genesis Managing Director Michael Fowler said.

“A diamond rig arrived on site this week, joining the RC rig which has been working since early March. 

“We also anticipate adding another drilling rig at the end of the month, and we expect all three rigs to be operating for a significant period of time as we work hard to grow the existing resource and lay the foundations for a significant new Australian gold project.”

In parallel with the drilling program, Genesis said funds from the capital raising would underpin the completion of an expanded feasibility study for the Ulysses project, contemplating the development of a standalone mining operation as the base case development scenario.