Genesis Minerals has started mining operations at the Ulysses West open-pit site, which is part of its larger wholly owned gold project near Leonora in Western Australia.
The company said that the starting of mining signals the important transition to production and cash-flow, which is set to underpin its upcoming growth and development phase.
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Mobilisation also started, with the Ulysses West site having been established in seven days.
Ore from the open-pit will be processed under a toll milling agreement signed with Paddington Gold and first ore is expected to be dispatched to the Paddington Mill by this month.
Based on the feasibility study completed in August, the project is expected to generate an estimated free cash-flow of $6m from the initial Ulysses West operation.
Genesis Minerals managing director Michael Fowler said that the site establishment was completed in a short period of time.
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By GlobalDataFowler said: “This marks a critical milestone in Genesis’ history, with Ulysses West expected to deliver strong cash-flow for the company to help underpin our future growth initiatives.
“Planning is now well-advanced for our two key exploration drilling campaigns, which will commence at the Ulysses and Viking Projects in October.
Last month, Genesis received the final outstanding regulatory approvals needed to begin open-pit mining operations at its Ulysses gold project.
Image: Mining of top soil at Ulysses West. Photo: courtesy of Genesis Minerals Limited.
