PERTH (miningweekly.com) – Openpit mining has started at the Ulysses West openpit mine, which forms part of the greater Ulysses gold project, in Western Australia.
Owner Genesis Minerals said on Monday that the start of mining marked a significant milestone for the company and signalled the transition to production and cash flow, which would underpin the company’s next phase of growth and development.
Ore from the Ulysses West openpit mine will be processed under a toll milling agreement with Paddington Gold, with first ore expected to be dispatched by mid-October.
The project is expected to generate a free cash flow of some A$6-million from the initial Ulysses West operation, from a probable ore reserve of 74 000 t, grading 4.1 g/t gold for 9 700 oz contained gold.
“This marks a critical milestone in Genesis’s history, with Ulysses West expected to deliver strong cash flow for the company to help underpin future growth initiatives,” said Genesis MD Michael Fowler.
“Planning is now well advanced for our two key exploration drilling campaigns which will commence at the Ulysses and Viking projects in October.”
The exploration programme is aimed at growing the resource inventory and identifying additional low-risk openpit mining opportunities, and to make a company-changing gold discovery at either Ulysses or Viking.