Genesis Minerals Limited (ASX: GMD) has announced further outstanding results including 10.82m @ 5.22g/t gold from the Resource drilling at its Ulysses Gold Project in Western Australia. The company reported that the drilling has confirmed the presence of high-grade gold mineralisation at the Butterfly deposit, part of the recently acquired Kookynie tenements located south-east of the Company’s flagship 867koz Ulysses gold deposit.
Significant assay results include 5.17m @ 3.03g/t gold from 121.76m; 10.82m @ 5.22g/t gold from 122.49m; 14m @ 2.09g/t gold from 117m; 14m @ 1.54g/t gold from 150m; 2m @ 15.09g/t gold from 175m including 1m @ 29.48g/t gold from 175m; and 6m @ 2.41g/t gold from 107m.
GMD said that mineralisation was intersected outside of the current Resource envelope, and remains open down-dip and down plunge.
The company also reported that further high-grade mineralisation was intersected at the Admiral deposit, with significant results including 2.25m @ 7.35g/t gold from 146.08m; 7.60m @ 4.00g/t gold from 110.7m; 10.50m @ 1.59g/t gold from 66.5m; 7.71m @ 2.16g/t gold from 121.79m; 10.00m @ 5.74g/t gold from 75m; 3m @ 6.06g/t gold from 81m; and 10m @ 3.51g/t gold from 30m.
Genesis Minerals said that the results confirm outstanding potential to grow Mineral Resources in the Admiral-Clark-Butterfly area.
The Ulysses Project is centred about 30km south of Leonora and 200km north of Kalgoorlie in Western Australia. Ulysses is located in the minerals rich and highly prospective Eastern Goldfields of Western Australia.
The project is located 30km south of the Sons of Gwalia mine and along strike of Orient Well and Kookynie mine camps which have produced over 0.7Moz. It is close to world leading mining infrastructure which will potentially allow toll treatment of ore from Ulysses.
Ulysses is a large scale gold system with an aggressive drilling program underway which increased the Mineral Resource by 137% (439,000oz Au) in 2018 at <$10/oz.
Ulysses has a Measured, Indicated, and Inferred Mineral Resource of 7.1Mt @ 3.3 g/t gold for 760,000 ounces of contained gold. The high-grade portion of the Mineral Resource, reported at a cut off of 2g/t gold which will form part of the mining evaluation for the Feasibility Study is estimated to contain 4.1Mt @ 4.7g/t gold for 628,000 ounces. The high-grade shoots which form part of the overall Mineral Resource are estimated to contain 1.6Mt @ 6.9g/t gold for 356,000 ounces.
Significant prospects within the Ulysses project include Ulysses East prospect, Orient Well NW prospect, Ulysses North prospect, and Ulysses NW prospect.
The company had recently acquired Kookynie tenements located south-east of the Company’s flagship 867koz Ulysses gold deposit. Kookynie Gold Project is located over a 60km strike length of the Melita Greenstones on granted mining and exploration licenses with associated miscellaneous licenses.
The Orient Well deposit is located on M40/289, M40290, M40/291, and M40/20. The Admiral/Clark and Butterfly deposits are located on Mining Leases M40/101, M40/110, and M40/3.
The Butterfly and Admiral deposits form part of a cluster of deposits within the Ulysses-to-Orient Well structural corridor, where Genesis is currently undertaking a systematic +35,000m Resource definition and expansion drilling program.
Drilling at Kookynie
Genesis had recently commenced initial Reverse Circulation (RC) drilling at the Butterfly deposit and diamond drilling at the Butterfly and Admiral deposits.
The drilling was designed to confirm and upgrade zones of mineralisation that are included in the current Butterfly and Admiral Mineral Resources, as well as testing potential extensions to the Mineral Resources. Drilling was also completed for metallurgical and geotechnical test work.
GMD said that the results from this program will feed into updated Mineral Resource estimates that will underpin the Feasibility Study on the development of a significant standalone gold operation at Ulysses, with ore to be sourced from a combination of known underground and open pit Resources.
Butterfly drill program
The drilling program at Butterfly consisted of 12 RC holes for 1,830m (20USRC509 to 529) and three diamond holes for 467m (20USDH140, 20USDH149, and 20USDH150), with drilling focused on an area covering ~300m of strike targeting the Inferred portion of the current Resource and potential extensions. Holes 20USDH149 and 150 were drilled for both metallurgical test work and Resource upgrade purposes.
Admiral drill program
The drilling program at Admiral consisted of seven RC holes for 940m (20USRC566 to 589) and five diamond holes (20USDH139, 20USDH141, and 20USDH146 to 148) with drilling focused on an area covering ~300m x 150m targeting both the Indicated and Inferred portions of the current Resource. Holes 20USDH141 and 20USDH146 to 148 were drilled for both metallurgical test work and Resource upgrade purposes. 20USRC566 to 589 were drilled to upgrade the Inferred Resource.
High-grade results from Kookynie tenements
The company has now reported further highly-encouraging results from initial Reverse Circulation (RC) drilling at the Butterfly deposit and diamond drilling at the Butterfly and Admiral deposits.
GMD said that the drilling at the butterfly deposit has confirmed the presence of strong mineralisation associated with the Butterfly dolerite unit.
Significant results included 5.17m @ 3.03g/t Au from 121.76m 20USDH149; 10.82m @ 5.22g/t Au from 122.49m 20USDH150; 5m @ 1.34g/t Au from 102m 20USRC509; 6m @ 1.41g/t Au from 112m 20USRC513; 14m @ 2.09g/t Au from 117m 20USRC515; 5m @ 1.26g/t Au from 138m 20USRC517; 6m @ 1.10g/t Au from 113m 20USRC521; 14m @ 1.54g/t Au from 150m 20USRC525 ;2m @ 15.09g/t Au from 175m 20USRC527 including 1m @ 29.48g/t Au from 175m; and 6m @ 2.41g/t Au from 107m 20USRC529.
The company reported that the results from the recent drilling have supported the widths and tenor of mineralisation from historical drilling. GMD said that the drilling has highlighted the potential to expand the current Resource both down-dip and down-plunge.
Genesis said that the ongoing drilling, to be completed prior to the end of CY2020, is aimed at defining higher-grade zones both inside and outside of the current Resource area, which may be associated with the quartz-rich parts of the dolerite unit.
GMD noted that the hole 20USRC527 returned 2m @ 15.09g/t Au from 175m in the footwall to the main Butterfly mineralisation. This intercept is located ~ 70m below the main Butterfly mineralisation. The company said that further drilling is required to define the extent and significance of this intercept.
Genesis Minerals said that the drilling at Admiral deposit continues to confirm the presence of significant mineralisation associated with the Admiral Shear.
Significant results included 3m @ 6.06g/t Au from 81m 20USRC566; 4m @ 2.55g/t Au from 112m 20USRC570; 4m @ 1.72g/t Au from 134m 20USRC570; 5m @ 1.34g/t Au from 119m 20USRC572; 10m @ 1.81g/t Au from 25m 20USRC574; 5m @ 2.27g/t Au from 50m 20USRC574; 5m @ 4.33g/t Au from 80m 20USRC574; 1m @ 7.36g/t Au from 134m 20USRC574; 3m @ 3.34g/t Au from 153m 20USRC574; 10m @ 3.51g/t Au from 30m 20USRC588; 5m @ 1.21g/t Au from 110m 20USRC589; 4m @ 2.09g/t Au from 144.6m 20USDH139; 2.25m @ 7.35g/t Au from 146.08m 20USDH141; 7.60m @ 4.00g/t Au from 110.7m 20USDH146; 10.50m @ 1.59g/t Au from 66.5m 20USDH147; 7.71m @ 2.16g/t Au from 121.79m 20USDH147; and 10.00m @ 5.74g/t Au from 75m 20USDH148.
Updates and next steps
The company reported that the drilling program will continue until the Christmas break and restart in January 2021. It may be noted that the objective of the current drilling along the Admiral-to-Butterfly trend is to expand the current Resources and outline new Resources with the potential to be captured in one large open pit.
GMD said that the drilling in 2021 will continue to target the north-east dipping Admiral, Clark, and Butterfly Shears together with north-dipping shear zones running along key lithological contacts, particularly the Hercules Shear.
The company announced that a major drilling program is also planned at Orient Well in 2021 aimed at expanding the current Resource at depth and along strike.
Genesis Managing Director, Michael Fowler, said: “These are highly encouraging results from both the Butterfly and Admiral deposits, which indicate a significant opportunity to expand and upgrade the existing Resources across this area to potentially underpin a single, large open pit mining operation.
Drilling is continuing across the greater Ulysses Project with two RC rigs and a diamond rig operating until Christmas, with planning also well advanced for drilling in early 2021.
We expect to deliver an updated project-wide Mineral Resource in the first quarter of 2021, which will underpin the completion of our feasibility study and provide a solid platform from which to progress the development of a significant new standalone gold mining and processing operation at Ulysses.”