Genesis pleasantly surprised by Ulysses upside

GENESIS Resources’ high-grade Puzzle North discovery has delivered further “exceptional” gold results.
Genesis pleasantly surprised by Ulysses upside Genesis pleasantly surprised by Ulysses upside Genesis pleasantly surprised by Ulysses upside Genesis pleasantly surprised by Ulysses upside Genesis pleasantly surprised by Ulysses upside

Drilling at Ulysses

Shallow drilling at Puzzle North returned standout hits of 27m at 8.18 grams per tonne gold from 30m; and 34m at 13.36gpt gold from 42m, including 1m at 382.6gpt.

Other wide hits included 29m at 2.91gpt gold from 52m; 20m at 2.03gpt from 12m; 23m at 1.61gpt from 61m; 35m at 1gpt from 72m; 12m at 3.95gpt from 13m; 11m at 2.57gpt from 60m; 10m at 3.83gpt from 128m; 43m at 2.17gpt from 99m; 28m at 1.08gpt from 13m; and 15m at 3.08gpt from 2m.

Drilling at Puzzle North has now defined mineralisation over 600m of strike and up to 100m wide, with the mineralisation remaining open both at depth and along strike.

Results from the southern end of the 59,000oz Puzzle pit returned a best result of 4m at 9.07gpt gold

Argonaut Securities analyst Royce Haese said Puzzle North was shaping up to be a major discovery.

"At first glance, the Puzzle area now has the potential to contribute on-par with Admiral-Clarke-Butterfly to the eventual mine plan," he said.

"In our model we assume 440,000oz mined from the ABC complex at this stage. We will review the drill data received to date in detail and crystallise our view."

Extensional drilling targeting southern part of the 189,000oz Orient Well resource returned 9m at 2.56gpt gold from 51m; 20m at 2.23gpt from 67m; 38m at 1.39gpt from 88m; and 70m at 1.01gpt from 65m, including 12m at 2.42gpt.

"These drilling results provide clear evidence of the potential to expand the current 1.6Moz mineral resource at Ulysses and show that we are well on track to take this project to the next level," Genesis managing director Michael Fowler said.

"The resource growth opportunity across the Greater Ulysses project is continuing to surprise us on the upside, and we are excited about what the year ahead can deliver for Genesis shareholders."

A resource upgrade is due later this quarter.

Fowler will step down next month to make way for former Saracen/Northern Star managing director Raleigh Finlayson.

Ulysses, near Leonora in Western Australia's Goldfields, is just 15km from the station where Finlayson grew up.

"I screened lots of projects in multiple commodities and this one was a standout," he said in November.

"The exploration upside is immense."

Shares in Genesis rose 3% to A$1.66.

Argonaut's speculative buy rating and $2.20 price target is under review.