PERTH (miningweekly.com) – Gold hopeful Genesis Minerals has launched a feasibility study on an underground mining operation at its Ulysses project, in Western Australia, with the hopes of starting underground mining in the second quarter of 2018.
The company said on Thursday that an internal scoping study had demonstrated the potential technical and economic viability of developing a long-term underground mining operation at the Ulysses project, with the scoping study also highlighting the strong potential to develop a standalone underground mining and processing operation.
“The recently completed scoping study has outlined a strong case for the development of an underground mine at Ulysses, which we believe represents an attractive opportunity for the company to generate significant cash flows, assuming a toll treatment scenario,” said Genesis MD Michael Fowler.
“That said, should we be successful in expanding the resource outside of the area included in the scoping study, there is strong potential for us to consider a much longer life standalone underground mining and processing operation.”
An initial 4 000 m reverse circulation and diamond drill programme will start this week to upgrade and expand the current mineral resource below the current openpits, with the updated resource estimate to underpin the feasibility study.
A further 2 400 m of drilling was also planned, should the results of the first drilling programme be successful in expanding the mineral resource.