Genesis Boosts FY26 Exploration Spend to A$50m Following High-Grade Drilling
Genesis Minerals has more than doubled its FY26 exploration budget to A$40-50 million, driven by promising drilling results at its Leonora and Laverton gold assets. Recent assays reinforce the company’s strategy of organic growth supported by resource expansion near existing processing infrastructure.
- Exploration budget increased from A$19m to A$40-50m for FY26
- Strong drilling results at Jupiter, Beasley Creek, Gwalia, and Admiral mines
- Acquisition of Focus Minerals’ Laverton project for A$250m adds 4Moz resources
- Drilling supports potential plant expansions and mine life extensions
- Focus on leveraging existing mills and diversifying ore sources
Genesis Doubles Down on Exploration
Genesis Minerals Limited (ASX – GMD) has announced a significant increase in its exploration budget for the 2026 financial year, more than doubling its spend to between A$40 million and A$50 million, up from A$19 million in FY25. This bold move underscores the company’s confidence in the organic growth potential of its gold assets in the prolific Leonora and Laverton districts of Western Australia.
Managing Director Raleigh Finlayson highlighted that organic growth offers some of the strongest financial returns in mining. With existing infrastructure in place, Genesis is well-positioned to capitalize on exploration success that can feed directly into its processing plants, potentially enabling expansions.
Drilling Success Across Key Projects
Recent drilling campaigns have delivered robust results across multiple sites. At the Jupiter open pit mine near Laverton, mining has resumed, providing a steady ore supply to the adjacent mill. Drilling has extended key shear zones and identified high-grade “sweeteners” with intercepts such as 9 meters at 13.8 grams per tonne (g/t) gold, signaling promising underground mining opportunities.
The Beasley Creek project, acquired from Focus Minerals for A$250 million late in FY25, adds a substantial resource base with historical drill results showing thick, high-grade intercepts like 17 meters at 9.3 g/t. This project sits just 30 kilometers from the Laverton mill, offering a significant baseload ore supply. Genesis is currently reinterpreting geological data and planning maiden drilling for the first half of 2026.
At the Gwalia underground mine near Leonora, drilling continues to confirm the high-grade nature of the deposit, with exceptional intercepts including 2.7 meters at 192.9 g/t gold. The company plans to add a third drill rig next quarter to accelerate infill and extension drilling, focusing on known lodes and potential parallel structures.
The Admiral open pit mine has also seen successful extensional drilling, increasing the areal extent of mining activities with shallow intercepts such as 17 meters at 3.0 g/t. Ongoing drilling aims to merge smaller pits and extend mine life, which would support potential expansions of the Leonora mill.
Strategic Acquisition and Resource Growth
The acquisition of Focus Minerals’ Laverton project has been a game-changer for Genesis, adding approximately 4 million ounces of gold resources within close proximity to its existing Laverton mill. This acquisition not only boosts Genesis’ total resources and reserves but also allows the company to process ore from other projects like Tower Hill at the Leonora mill, optimizing asset utilization.
Genesis’ pro forma resources now stand at 18.7 million ounces with reserves of 4.2 million ounces, underpinning its ASPIRE 400 strategy aimed at sustainable growth. The company’s exploration success and strategic acquisitions are integral to de-risking operations by diversifying ore sources and extending mine lives.
Looking Ahead
With a robust exploration program underway and promising drilling results reinforcing resource growth, Genesis is well-placed to advance plant expansion studies and extend mine life across its portfolio. The company’s focus on leveraging existing infrastructure while aggressively pursuing organic growth opportunities signals a confident outlook for its gold production trajectory.
Bottom Line?
Genesis’ exploration surge and strategic acquisitions set the stage for expanded production and longer mine lives, but ongoing drilling results will be critical to sustaining momentum.
Questions in the middle?
- How will the increased exploration budget impact Genesis’ production guidance and capital expenditure plans?
- What timelines are expected for the potential expansions of the Laverton and Leonora processing plants?
- How will Genesis manage risks associated with integrating the newly acquired Focus Laverton assets?
