Genesis Minerals gains as drill results boost growth prospects
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More news: Genesis Minerals was the fourth best performing ASX 200 company in morning trade after the gold miner reported positive drilling results across a number of its projects in Western Australia, boosting hopes of achieving its five-year growth target.
Genesis shares were up 3.1% to $2.31 at 11:50am AEDT, having advanced more than 55% in the last 12 months.
New drill results boost Genesis Minerals' growth plans
The news: Genesis Minerals said new drilling results across a number of its gold projects in Western Australia will help underpin increased mining and production rates across its five-year growth strategy.
The numbers: Genesis said results at the projects present "multiple opportunities" to help achieve its 325,000 ounces per year target and reduce all-in sustaining costs.
New high grade drills results at its Gwalia underground mine will underpin the next seven years of production and likely see the miner extend the mine to the north, the miner said.
Elsewhere, at Genesis' Admiral open pit mine, recent drilling results confirmed a "significant increase" in grade. Genesis also commenced its first work at the Aphrodite project, demonstrating the site is open for new discoveries to be targeted in future drilling.
Meanwhile, drill results at its Hub open pit mine have confirmed potential for a future underground mine below the pit.
The context: Genesis noted that while some of its organic growth opportunities have the potential to be realised in a timeframe that would accelerate the miner's growth plan, others, such as its Westralia deposit at Laverton, currently sit outside the growth schedule altogether.
The gold producer flagged that it is re-modelling the Westralia deposit and its potential to host an open pit operation, followed by plans for a close-spaced drilling program and more detailed economic assessment.
What they said: "Organic growth is at the centre of our strategy to maximise shareholder returns," said Genesis' managing director Raleigh Finlayson.
"These strong drilling results support that strategy because they demonstrate the scope to steadily convert resources to reserves over the five-year growth plan," he said.
The source: ASX announcement
