Genesis Minerals has seen a strong production start and cash flow at the Leonora operations for the September quarter.
Genesis formally acquired the Leonora assets – located in Western Australia – from St Barbara in July after a months-long takeover process. The September quarter was the first quarter in which the operations were under Genesis’ ownership.
Genesis delivered gold production equalling to 34,066 ounces (oz) during the quarter. The gold miner said this sits above the recent 120,000–130,000 pascal (pa) production rate recorded for the Gwalia gold mine in WA on a stand-alone basis.
It also delivered an increase in cash and bullion by about $14 million over the course of the September quarter despite spending between $8–10 million on project development at Leonora’s Admiral and Ulysses deposits.
As of September 30, Genesis’ cash and bullion stands at $170 million.
The company is currently fast-tracking the Admiral open pit to supplement the Gwalia underground mine and fill the 1.4 megatons per annum Leonora mill. It expects for Leonora’s production to increase as Admiral ramps-up over the upcoming quarters.
Additionally, Genesis’ strategic review for the assets is progressing as expected and it’s tracking to deliver its maiden five-year outlook in March 2024.
Genesis Minerals managing director Raleigh Finlayson said the company’s first quarter running the Leonora operations made it see strong growth potential for the future. For example, Genesis’ has a more than 300,000oz per annum production plan for Leonora.
“Our team has made outstanding early progress towards re-setting Gwalia mine production, adding Admiral ore to fill the Leonora mill and reducing costs,” Finlayson said. “These are all key ingredients in our long-term low-cost growth strategy at Leonora.”