Genesis strikes deal for gold

Genesis Minerals (ASX: GMD) is set to acquire the Laverton gold project from Focus Minerals (ASX: FML) for $250m in a move to foster growth.

The company has entered a binding share purchase agreement with Focus for the project that boasts a mineral resource estimate of 4moz at 1.7g/t and 546,000oz in reserves at 1.3g/t.

Genesis says that there is substantial scope for the project to supply both open-pit and underground ore to its Laverton mill about 30km away.

Completion of the acquisition is expected to occur early next month and the company has referred to the project as a highly strategic acquisition that will consolidate the Laverton assets.

Genesis managing director Raleigh Finlayson says this is the perfect bolt-on acquisition.

“It offers supplementary open pit and underground ore to our Laverton mill and in the process gives us flexibility regarding the most efficient pairing of deposits and processing infrastructure between Laverton and Leonora.

“With more ore available at Laverton, our flagship Tower Hill deposit can potentially be processed at Leonara resulting in significantly lower operating costs.”

Genesis is prioritising the in-fill and extensional drilling to de-risk and rebuild the resource, staged mill expansion, oxide optimisation and exploration of the highly extensive tenement package.

Mining leases have been granted for 99% of the resources and reserves at the site already.

“With both the Laverton and Leonora mills now ‘long ore’, studies into staged plant expansions continue apace,” Mr Finlayson said.

“These benefits make the transaction entirely consistent with our ‘ASPIRE 400’ growth strategy.”

In light of the company’s continued growth, Genesis has appointed experienced mining executive and mining engineer Duncan Coutts as an executive director.

Genesis chairman Tony Kiernan says Mr Coutts’ extensive experience will further bolster the company’s development and operational capacity.

“We are committed to building a world-class team of highly experienced specialists to help ensure we maximise the opportunities presented by our growing asset base,” he said.

“[Mr] Duncan’s immense experience in project due diligence, project development and integration will be invaluable as part of our commitment to growth and development.”