Genesis ahead of schedule at Laverton mill

Mining and processing preparations for Genesis Minerals’ (ASX: GMD) Laverton mill re-start in WA are running ahead of schedule, enabling the company to capitalise on strong gold prices.

The re-start is running six months ahead of schedule with re-start expected in October 2024, marking the first step in an accelerated growth strategy aimed at achieving a 325kozpa target.

Following the progress, Genesis has increased its forecast FY25 production at Laverton to 35-35,000oz from 14-16,000oz. Total FY25 production outlook also increased to 190-210,000oz from 162-188,000oz.

Genesis Minerals managing director Raleigh Finlayson says the expedited start of production at Laverton will deliver significant cashflow benefits this financial year and is particularly valuable given our strong exposure to the high spot gold price.

“As well as producing significantly more ounces in FY25 as a result of the accelerated start up, this success means we will enter next financial year in a stronger position due to the more advanced ramp up schedule at Laverton,” he said.

“This is consistent with our strategy to increase annual production to the targeted 325,000oz ahead of the 2029 timetable outlined in the five-year plan with positive implications for our aspirational production goal of 400,000ozpa.

“To bring a project into production significantly ahead of schedule is a major achievement.

“I would like to thank our team and contract partners for their huge efforts in delivering this superb result.”

Alongside these results, the conditional agreement between Poseidon Nickel (ASX: POS) and Mt Morgans WA Mining, a wholly owned subsidiary of Genesis, has been terminated.

The agreement concerned a trial processing of up to 100,000t of Lancefield gold tailings through the Laverton processing facility and granted access to 2.5GLpa of water from the South Windarra pit.

Poseidon’s agreement with Encore Minerals to develop the Windarra gold and nickel tailings using Draslovka’s Glycine Leaching Technology is unaffected by the termination.