PERTH (miningweekly.com) – The Leonora gold projects produced 34 066 oz of ore for gold miner Genesis Minerals during the quarter ended September, marking the first quarter under Genesis ownership.
Genesis acquired fellow-listed St Barbara’s Leonora assets earlier this year for A$370-million in cash and the issue of 205-million shares. The acquisition resulted in the company’s ore reserves increasing to 3.9-million ounces.
Genesis said on Wednesday that the production achieved from the Leonora assets sat above the 120 000 oz/y to 130 000 oz/y production rate for Gwalia at its standalone basis.
Under Genesis ownership, the near-surface Admiral and Ulysses development projects have been paired with the Gwalia mine to fully use the underutilised Gwalia mill, with Admiral hosting a reserve of 120 000 oz and Ulysses a reserve of 360 000 oz.
First ore has been mined at Admiral, ahead of schedule, and production at Leonora is anticipated to increase as Admiral ramps up over the coming quarters.
Genesis MD Raleigh Finlayson said on Wednesday that Genesis’ first quarter at Leonora provided an initial glimpse of an operation well-placed to grow strongly into the future.
“Our team has made outstanding early progress towards re-setting Gwalia mine production, adding Admiral ore to fill the Leonora mill and reducing costs. These are all key ingredients in our long-term low-cost growth strategy at Leonora.”