Genesis Minerals Limited (Genesis) (ASX: GMD) is pleased to advise that is has completed the acquisition of the Leonora assets from St Barbara Limited (St Barbara) (ASX: SBM).
The transaction is on-strategy, fully funded, and delivers unique synergies to the prolific Leonora District that will seek to generate significant long-term shareholder value.
In parallel with the transaction, Genesis has been advancing the Leonora Gold Project (LGP) comprising the Ulysses, Admiral, Orient Well and Puzzle deposits, to ensure the Genesis assets meet the long-term targets set as part of the acquisition of St Barbara's Leonora assets. Genesis is pleased to announce a maiden LGP Ore Reserve of 9.8Mt @ 2.0g/t for 630koz. Feasibility level studies have been conducted for Ulysses, Admiral, and Orient Well, whilst a Pre-Feasibility level study has been conducted for Puzzle. The LGP Ore Reserves includes two new development projects, Admiral open pit and Ulysses underground, that will be paired with the Gwalia mine to fill the underutilised Gwalia mill (refer pages 4-6 for project updates). Given the recent focus on Mineral Resource to Ore Reserve conversion and mine development, only minor changes are reported for the LGP Mineral Resources, updated to 41.0Mt @ 1.6g/t for 2.0Moz; compared to 39.3Mt @ 1.6g/t for 2.0Moz at 29th March 2022). All deposits remain open along strike and at depth. Group Ore Reserves stand at 3.9Moz and Group Mineral Resources stand at 15.0Moz. Genesis will complete a strategic review of Gwalia in the December half 2023 and provide a five-year outlook to the market in the March quarter 2024
Managing Director Raleigh Finlayson said the transaction has created a leading Australian gold house, 100% focused on Leonora. 'Most importantly, we can now get on with the job of unlocking the unique synergies and delivering the long life, 'margin over ounces' Leonora business plan we have clearly articulated to shareholders' Mr Finlayson said. 'The next six months will be focused on a strategic review of Gwalia, re-building the foundations to ensure a new lease of life for this prolific gold asset. 'On behalf of Genesis, I would like to thank St Barbara for its co-operation throughout the transaction and extend a warm welcome to our new colleagues at the Gwalia operation who are now part of the Genesis team.'
This announcement is approved for release by Raleigh Finlayson, Managing Director of Genesis.
Contact:
Tel: +61 8 6323 9050
Email: investorrelations@genesisminerals.com.au
Surface infrastructure capital costs are derived from tenders or quotations and include offices, fuel bay, ERT and First Aid facilities, and light vehicles, civils, workshops, and other surface infrastructure. All capital infrastructure costs have a minimum 10% contingency applied. Load and haul mining costs are built up from first principles by Genesis Mining Services based upon life of asset ownership costs and operating costs. Drill and blast costs are derived directly from tendered prices. Surface haulage costs were sourced from quotations received from reputable road haulage contractors that operate in the Goldfields region. Accommodation is based on current rates for accommodation facilities in Leonora by third parties. Flights are based on current chartered rates incurred by Genesis Minerals through the Leonora airport. Processing and General and Administration costs are based on actual operating costs incurred at the Mt Morgan operations. West Australian State Government royalty of 2.5% and third-party royalties of 1% for Puzzle and 3.5% for Puzzle North were included. Also included are two separate third party $1/ore tonne royalties (one for each deposit). All royalties are based on statutory or agreed rates as appropriate. West Australian State Government royalty of 2.5% and third-party royalties of 1% for Puzzle and 3.5% for Puzzle North were included. Also included are two separate third party $1/ore tonne royalties (one for each deposit). All royalties are based on statutory or agreed rates as appropriate.
Economic Outcomes
The Ore Reserve estimate is based on a Pre-Feasibility level of accuracy with inputs from mining, processing, transportation, sustaining capital and contingencies scheduled and costed to generate the Ore Reserve cost model. Load and haul mining costs are built up from first principles by Genesis Mining Services based upon life of asset ownership costs and operating costs. Drill and blast costs are derived directly from tendered prices. Road haulage costs are from budget rates supplied by a reputable goldfields haulage contractor. Site capital costs are sourced from tendered pricing for infrastructure. Processing and G&A costs are sourced from the most recent operating costs for Dacian's Mt Morgans Mill. The Ore Reserve returns an economic outcome based on the assumed commodity price and cost estimation, and the Competent Person is satisfied that the project economics that make up the Ore Reserve are suitable based on the mine design, modifying factors, assumptions, and environment. Sensitivity analysis has indicated that the project drivers are gold price, mining and metallurgical recovery followed by operating expenditure.
Competent Persons Statement
The information in this report that relates to Mineral Resources at Ulysses, Admiral, Orient Well, Laterite and Puzzle Deposits and for estimated Stockpiles are based on information, and fairly represents, information and supporting documentation compiled by Mr. David Price who is a Member of the Australasian Institute of Mining and Metallurgy. David Price is a contract employee of Genesis Minerals Limited and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. David Price consents to the inclusion in the statement of the matters based on her information in the form and context in which it appears. The information in this report that relates to Ore Reserves at Admiral, Ulysses, Orient Well and Puzzle Open Pits is based on information, and fairly represents, information and supporting documentation compiled by Mr. Christopher Burton who is a Member of the Australasian Institute of Mining and Metallurgy. Christopher Burton is a full-time employee of Genesis Minerals Limited and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Christopher Burton consents to the inclusion in the statement of the matters based on his information in the form and context in which it appears
Forward-looking statements
Some statements in this announcement regarding estimates or future events are forward-looking statements. They include indications of, and guidance on, future matters. Forward-looking statements include, but are not limited to, statements preceded by words such as 'planned', 'expected', 'projected', 'estimated', 'may', 'scheduled', 'intends', 'anticipates', 'believes', 'potential', 'could', 'nominal', 'conceptual' and similar expressions. Forward-looking statements, opinions and estimates included in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements are provided as a general guide only and should not be relied on as a guarantee of future performance. Forwardlooking statements may be affected by a range of variables that could cause actual results to differ from estimated results and may cause Genesis' actual performance and financial results in future periods to materially differ from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include but are not limited to liabilities inherent in mine development and production, geological, mining and processing technical problems, the inability to obtain any additional mine licenses, permits and other regulatory approvals required in connection with mining and third party processing operations, competition for among other things, capital, acquisition of reserves, undeveloped lands and skilled personnel, incorrect assessments of the value of acquisitions, changes in commodity prices and exchange rate, currency and interest fluctuations, various events which could disrupt operations and/or the transportation of mineral products, including labour stoppages and severe weather conditions, the demand for and availability of transportation services, the ability to secure adequate financing and management's ability to anticipate and manage the foregoing factors and risks. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. There can be no assurance that forward-looking statements will prove to be correct
GENESIS MINERALS LIMITED 
