Genesis Reports 3.7Moz Reserves with Maiden 370koz Westralia Open Pit Addition

Genesis Minerals' Reserve Growth and Strategic Outlook

Genesis Minerals Limited (ASX: GMD) has announced a significant 12% increase in its total Ore Reserves, now standing at 3.7 million ounces as of 31 December 2024, up from 3.3 million ounces a year earlier. This growth notably includes the company’s maiden Reserve of 370,000 ounces at the Westralia open pit, a key asset acquired through the 2022 takeover of Dacian Gold.

The Westralia Reserve, estimated using a conservative bulk open-pit mining method by Genesis Mining Services, contrasts with previous underground-focused estimates and offers substantial upside potential given its mineralisation extends over 4 kilometers and remains open both at depth and along strike. This addition is not yet included in the current 10-year production outlook, signaling further growth opportunities.

Drilling Success Across Multiple Deposits

Complementing the Reserve upgrade, Genesis reported robust drilling results across several key deposits including Gwalia, Admiral, Hub, and Bruno-Lewis. These results confirm the high-grade nature of the mineralisation and provide confidence in the robustness of the company’s 10-year production forecasts. Noteworthy intercepts at Gwalia, for example, include multiple high-grade zones exceeding 20 gram-metres, underscoring the deposit’s quality and continuity.

Drilling at Admiral has revealed increasing grades at the base of the planned pit, with lateral extensions under evaluation to potentially extend mine life. Similarly, infill and extensional drilling at Hub and Bruno-Lewis continue to support resource conversion and mine planning, with the latter showing significant shallow mineralisation over a 2-kilometer strike.

Production and Cost Guidance

Genesis maintains a 10-year production outlook underpinned by a combined milling capacity of 4.4 million tonnes per annum across its Leonora and Laverton mills, with over 10 years of feed secured by a 65 million tonne Production Target containing 4.5 million ounces. The company’s FY25 production guidance is set at 190,000 to 210,000 ounces at an all-in sustaining cost (AISC) of A$2,200 to A$2,400 per ounce.

Importantly, the Reserve increase supports the 'ASPIRE 400' strategy, which aims to accelerate production growth to reach 400,000 ounces per annum sooner than previously forecast. Options under consideration include optimisation studies, staged expansions, and earlier milling of accumulated stockpiles, which currently total approximately 8 million tonnes containing 280,000 ounces by FY29.

Technical and Economic Foundations

The updated Mineral Resource and Ore Reserve estimates comply with the 2012 JORC Code and are supported by detailed geological modelling, mining studies, and metallurgical test work. The company employs conservative assumptions, including a gold price of A$2,800 per ounce for economic evaluations and a rigorous approach to mining dilution and recovery factors.

Genesis’ Managing Director, Raleigh Finlayson, highlighted that the Reserve growth not only strengthens the current production outlook but also enhances the potential to bring forward production increases, thereby improving cash flow and reducing costs. The company’s flexible processing options, including the ability to process Tower Hill ore at either the Laverton or Leonora mills, provide operational agility.

Outlook and Next Steps

Genesis plans to continue its drilling programs to further de-risk and expand Reserves, particularly at Westralia, while progressing mining studies and evaluating development options. Updated FY26 production and cost guidance is expected in the September quarter of 2025, which will provide further clarity on the pace of the 'ASPIRE 400' growth trajectory.