Genesis Minerals Limited (ASX: GMD) ASX Announcement - 24 October 2016

Key points:

DRILLING COMMENCES AT VIKING GOLD PROJECT, WA
  • 4,000m aircore drilling program underway at Viking Gold Project, WA
  • Viking is located near Norseman in the world-class Albany-Fraser Orogen (which hosts the Tropicana gold deposit and Nova-Bollinger nickel deposit)
  • Drilling will initially test the Beaker 2 Prospect to evaluate a +1.5km long gold anomaly
  • The rig will then move to Beaker 4 Prospect, where high-grade gold (7m at 4.02g/t gold, 4.4m at 6.6g/t gold and 6m at 6.04g/t gold) has been intersected in drilling within a +2km long gold trend
  • The program will also commence evaluating the strike extensive (7km long) Dr Bunsen surface geochemical gold anomaly
  • Drilling scheduled to be completed by early November, with follow-up RC target drilling scheduled to commence in late November

    Genesis Minerals Limited (ASX: GMD) is pleased to advise that it has commenced drilling at the highly prospective 100%-owned Viking Gold Project, located near Norseman in Western Australia.

    With the commencement of mining at the Company's Ulysses Gold Project near Leonora, Genesis is ramping up exploration activities on several fronts with the start of drilling at Viking representing an important step forward in its corporate growth strategy.

    The Viking Project represents a highly prospective discovery opportunity for the Company, being located in the under-explored southern sector of the world-class Albany-Fraser Orogen - a major geological province which also hosts the Tropicana gold deposit and the Nova-Bollinger nickel deposit.

    Previous exploration at Viking has delineated several advanced gold prospects, including the Beaker 2 and Beaker 4 prospects and Dr Bunsen geochemical anomaly.

    The current drilling program at Viking will comprise up to 4,000m of shallow, systematic aircore drilling to further evaluate all three of these prospects and define targets for deeper Reverse Circulation (RC) drilling scheduled to commence in late November.

    ABN: 72 124 772 041

    Unit 6, 1 Clive St

    West Perth, WA, Australia, 6005

    ASX Code: GMD

    www.genesisminerals.com.au T: +61 8 9322 6178

    Figure 1 Project Location

    Further information on the key prospects (see Figure 2) to be tested as part of the current program is provided below:

    Beaker 2

    Figure 2 Prospect Locations

    The Beaker 2 prospect consists of an extensive, wide zone of near-surface oxide mineralisation within a 1.5km long aircore defined gold anomaly (see GMD ASX Release April 8, 2015).

    Wide zones (+100m wide) of shallow oxide mineralisation (commencing at approximately 8m below surface) were intersected at Beaker 2 during Genesis' first drilling programs in 2014 including:

    • 14VKRC015 5m @ 9.3 g/t gold from 26m

      8m @ 0.7 g/t Au from 8m

    • 14VKRC016 2m @ 1.2 g/t gold from 21m

      2m @ 5.7 g/t gold from 44m

    • 14VKRC017 1m @ 2.6g/t gold from 10m

      3m @ 1.5 g/t gold from 21m

      3m @ 8.2 g/t gold from 40m

    • 14VKRC019 3m @ 0.7g/t gold from 30m No drilling has been completed since that time.

Drilling will target extensions to the known high grade mineralisation prior to follow up RC drilling.

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Figure 3 Beaker 2 Plan

Figure 4 Beaker 2 Section

Beaker 4

Shallow RC drilling by Genesis in late 2014 targeted the western mineralised trend at the Beaker 4. High-grade gold intersected from this drilling included 7m @ 4.02g/t gold from 31m and 6m @ 6.04g/t gold from 73m (includes 3m @ 11.35g/t Au) (see GMD ASX Release September 9, 2014). Gold mineralisation is hosted within sulphidic, laminated quartz veins within a moderately east dipping shear zones. Mafic enclaves within the granitoids are thought to provide a rheological contrast within the competent host allowing gold mineralisation to develop. Visible gold has also been observed in drill core within these mineralised intervals.

The three-open ended mineralised trends (+2km) will be targeted by in this aircore program and followed up by RC drilling in late November.

Figure 5 Beaker 4 Plan

Figure 6 Beaker 4 Section

Genesis Minerals Limited published this content on 24 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 24 October 2016 21:32:01 UTC.

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