The Desdemona South tenement package of around 156 square kilometres is contiguous with and immediately to the north of Genesis’ 760,000-ounce Ulysses Gold Project.
Right to earn initial 60%
Under the terms of the agreement, Kin will grant Genesis the right to earn an initial 60% interest in the project and move to 80% under certain conditions.
In stage I Genesis must incur expenditure of not less than $250,000 on the JV area within 18 months of the start of the agreement.
Genesis may then earn a 60% interest by incurring a further $750,000 expenditure on the area within 36 months.
Once Genesis earns a 60% interest, Kin may elect to form a JV with participating interests of 60% Genesis and 40% Kin or grant Genesis the right to elect to sole contribute or form a JV.
Option to earn up to 80%
If Kin does not elect to take this option, once Genesis earns 70% Kin may elect to form a 30:70 JV or grant Genesis the right to elect to sole contribute or form a JV to move to 80%.
Genesis would need to spend $2.6 million in total to earn an 80% interest in the JV.
Project location map showing the Desdemona South JV Project in blue.
The JV will provide Genesis with more than 10 kilometres of strike of mafic stratigraphy to explore within the same regional structural corridor that controls gold mineralisation in the district.
This stratigraphy is similar to Ulysses.
Addition to Genesis’ footprint
Genesis managing director Michael Fowler said the farm-in and JV agreement with Kin Mining represented a logical and strategic addition to its regional gold exploration footprint.
“This gives Genesis an opportunity to test a highly prospective and under-explored package of ground located immediately north of our existing resource base at Ulysses,” he said.
Gold target zones identified will be tested in the first half of 2020.