PERTH (miningweekly.com) – The Ulysses gold project, in Western Australia, has generated its first cash for owner Genesis Minerals, under a toll milling arrangement with Paddington Gold.
Genesis said that the initial payment for the first parcel of ore processed through the Paddington mill marked another milestone in the successful execution of the company’s first toll treatment mining operation.
Regular cash flow is now expected every few weeks, as stockpiled ore is delivered for milling.
Regular shipments of around 10 000 t each were scheduled to be made to Paddington during November and December.
“Banking our first cheque is obviously a very pleasing milestone, and we now expect a consistent stream of cash inflows every couple of weeks through to the end of February 2017, as deliveries continue to be made to Paddington and as higher grade ore is mined from the Ulysses West pit,” said Gensis MD Michael Fowler.
Openpit mining at the Ulysses West pit is progressing on schedule, with the company’s partner SMS Innovative Mining making progress with the mine plan.
Mining will be completed prior to Christmas.
“We are also pressing ahead with drilling targeting the newly defined gold anomaly at Ulysses East and the recently identified extensions at Ulysses West. Both of these areas offer the potential to repeat or expand the successful Ulysses West openpit toll treatment operation, generating further cash flow to underpin the company’s growth,” Fowler said.