Genesis expands Leonora ground

13th December 2019
Resources Rising Stars

Genesis Minerals has signed a farm-in agreement with Kin Mining over the Desdemona South Area, south of Leonora (reports MiningNews).

The project sits between Genesis' 760,000 ounce Ulysses deposit and St Barbara's Gwalia mill.

The ground includes more than 10km of prospective strike, including the northern extension of the structural corridor that hosts Ulysses.

Genesis can earn 60% of the ground by spending A$1 million on exploration within four years.

If Kin chooses not to contribute, Genesis could reach 80% by spending a total of $2.6 million.

Argonaut Securities said the farm-in was positive for Genesis given the rocks were the same as what is seen at Ulysses.

"We see this as a highly prospective acquisition, which dovetails in with Genesis' existing assets," analyst James Wilson said.

"Near-term, Genesis is working hard on additional potential tenement acquisitions and the monetisation of the Ulysses plus-700,000oz resource via potential toll treatment which was flagged at the annual general meeting.

"We see a number of value catalysts over the next 6-12 months."

Genesis said the deal was consistent with its strategy to consolidate ground in the Leonora region.

"We're pursuing district-wide asset consolidation opportunities," Genesis managing director Mike Fowler told the Resources Rising Stars Summer Series last week.

Argonaut recently highlighted Leonora as a potential M&A hot spot.

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