logo-loader

Genesis Minerals Ltd signs MOU with Eastern Goldfields for ore treatment

Published: 13:00 25 May 2016 AEST

au_wa__350_5744f6123c5de

Genesis Minerals Ltd (ASX:GMD) will have the gold that produced from its Ulyssess Gold Project processed at the Davyhurst Mill belonging to Eastern Goldfields Ltd (ASX:EGS), after signing an agreement today.

The mill is located 135 kilometres away paves the way for GMD to start treating its own ore from the second half of this year.

GMD's 100% owned Ulyssess Gold Project produces high grade gold ore. The agreement with EGS is subject to the completion of a mining study of this project.

On its part, EGS must re-commission its Davyhurst Mill, and commence production at its Davyhurst Project.

This looks to be a valuation driver for GMD as it provides a path to monetise its Ulysses project and asset as soon as August 2016.

Ulysses is a 151,000 ounce resource at 2.2g/t gold which has the potential to generate solid operating margins and net positive cash flows from the fourth quarter of 2016.

Apart from Ulysses, the Company expects world class exploration upside from its Viking Project, which is located in the Albany-Fraser belt.

Shares in GMD, which traded at $0.004 in June 2015, closed at $0.019 yesterday.

Genesis held $1.3 million in cash as at the March 31, 2016.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

8 hours, 2 minutes ago