Genesis Minerals : Ulysses Mineral Resource Update

Genesis Minerals Limited (ASX: GMD)

ASX Announcement - 19 December 2019

ULYSSES MINERAL RESOURCE UPDATE

Ulysses Resource increased to 867,000oz following highly successful 2019 drilling program, marking

another step towards Genesis' objective of becoming a substantial new gold miner

Key Points:

• The total Mineral Resource (Measured, Indicated and Inferred) for the 100%-owned Ulysses Gold Project near Leonora in WA now stands at:

8.5Mt @ 3.2g/t gold for 867,000 ounces of contained gold

• 14% increase (107,000 ounces) in total contained ounces from the previously announced October 2018 Mineral Resource.
• Measured and Indicated Mineral Resource increased by 22% (103,000 ounces) to 574,000 ounces.
• Importantly, the Measured Mineral Resource has increased significantly from 4,000 ounces to 133,000 ounces as a result of recent drilling.
• High-gradeportion of Resource estimated to contain:

4.8Mt @ 4.5g/t gold for 695,000 ounces

1. Includes high-grade shoots containing:

1.73Mt @ 6.5g/t gold for 360,000 ounces

• Resource remains open both at depth and along strike.
• Drilling will continue in the New Year to test a number of new areas for further Resource growth.
• Feasibility work progressing.

Genesis Minerals Limited (ASX: GMD) is pleased to advise that it has taken another step towards its objective of developing a substantial new Australian gold mine at its 100%-ownedUlysses Gold Project near Leonora in WA, with the announcement of a 107,000oz increase in the Mineral Resource for the Ulysses deposit from 760,000oz to 867,000oz of contained gold.

The updated Mineral Resource incorporates the results of the highly successful drilling program completed at Ulysses over the past four months, which has returned numerous high-grade intersections that confirmed and extended a number of high-grade gold zones.

The updated Measured, Indicated and Inferred Mineral Resource now totals 8.5Mt @ 3.2g/t gold for 867,000 ounces of contained gold (refer to Table 1 for full details), which represents a 14% increase in contained ounces when compared with the October 2018 Mineral Resource. Importantly, the higher- confidence Measured and Indicated component has increased by 103,000 ounces (22%) to 574,000 ounces, with the Measured Resource increasing significantly from 4,000 to 133,000 ounces.

The high-grade portion of the Mineral Resource, reported at a cut-off of 2g/t gold (refer to Table 1 for full details), which will form part of the mining evaluation for the Feasibility Study, is estimated to contain 4.8Mt @ 4.5g/t gold for 695,000 ounces.

ABN: 72 124 772 041	ASX Code: GMD
Unit 6, 1 Clive St	www.genesisminerals.com.au
West Perth, WA, Australia, 6005	T: [phone]

19 December 2019

Genesis Minerals Limited

The high-grade shoots which form part of the overall Mineral Resource are estimated to contain 1.73Mt @ 6.5g/t gold for 360,000 ounces.

The Mineral Resource extends over a strike length of more than 2.5km and sits immediately below and along strike from the Ulysses Open Pits (see Figures 1 and 2).

The Resource envelope currently extends to ~500m below surface at its deepest point and is estimated to an average depth of ~320m below surface, with a gold endowment of +2,700 ounces per vertical metre (ovm) for the 260m interval from the 360mRL (base of the open pits) to the 100mRL (interval of highest drill density).

The base of the Indicated portion of the Resource is shown in Figure 1 below.

Commenting on the Mineral Resource upgrade, Genesis Managing Director, Michael Fowler, said:

"We are continuing to grow at Ulysses, with this latest Resource update both expanding and upgrading the Mineral Resource.

"Importantly, recent drilling has delivered a major uplift in the high-confidence Measured Resource category - which now stands at 133,000 ounces - providing a robust foundation from which to progress ongoing Feasibility Studies for the mine development.

"Our goal is to deliver a long-life standalone mining and processing operation, with a multi-pronged strategy in place to continue to expand the Resource base at Ulysses. This includes infill and extensional drilling in and around the existing Resource area, drilling for new discoveries within our tenement package and looking at potential project acquisition and consolidation opportunities in the surrounding area.

"In parallel with our studies for a standalone operation, we are also evaluating the potential for near term production to take advantage of the strong Australian dollar gold price. However, this path would only be progressed in the event that it delivers strong, long-term cash flow to the Company that would set the Company up for the future.

"Ulysses continues to demonstrate its credentials as a robust, high-grade asset with all of the attributes, including a Tier-1 location, to enable us to advance it towards development in the near term."

Next Steps

The next steps for the Ulysses Project in the New Year will include:

• Continued infill and extensional drilling in and around the existing Resource area;
• Drilling for new discoveries within the greater Ulysses project area;
• Continuing to look at potential project acquisition and consolidation opportunities in the surrounding area; and
• Progressing Feasibility Studies on the Ulysses mine development, including toll treatment options, with a view to making a decision on developing a long-term mine in 1HCY2020.

ASX Release: Ulysses Mineral Resource Update.

2

19 December 2019	Genesis Minerals Limited

Figure 1. Projected Long Section in local grid showing the new Ulysses Mineral Resource (moderate red outline) with the high-grade portion of the resource showing in magenta. Limit of Indicated Mineral Resource shown.

Figure 2. View looking towards the south-east showing the showing the modelled resource.

Listing Rule 5.8.1

Pursuant to ASX listing rule 5.8.1, and in addition to the information contained in JORC tables, the Company provides the following in respect of the Ulysses Mineral Resource.

Mineral Resource Statement Overview

A Mineral Resource update for the Ulysses deposit was completed in November 2019 by Payne Geological Services Pty Ltd ("PayneGeo"). The update was required to incorporate the results of the major infill and extension drilling program carried out by Genesis during 2019. The program has provided increased confidence in the tenor and continuity of the interpreted high grade mineralisation at Ulysses, as well as defining further extensions to the deposit.

ASX Release: Ulysses Mineral Resource Update.

3

19 December 2019

Genesis Minerals Limited

The Ulysses Project area has been held by a number of operators and has been drilled in several phases since initial discovery. Drilling has been focussed on the Ulysses deposit, with more regional exploration also completed.

Open pit mining was carried out in 2002 by a previous operator and Genesis carried out two phases of open pit mining in 2016 and 2017.

The high-grade shoots within the deposit are visually identifiable due to the strong pyrite-albite-biotite alteration that is present and they have been separately modelled and estimated to properly quantify the higher grade mineralisation within the overall Mineral Resource estimate. The Ulysses East mineralisation has been substantially extended since the last estimate. A summary of the updated 2019 Ulysses Mineral Resource is provided in Table 1 below.

Table 1: Ulysses Gold Deposit December 2019 Mineral Resource (0.75g/t cut-off grade above 200mRL, 2.0g/t cut-off below 200mRL)

		Measured		Indicated		Inferred				Total
	Domain	Tonnes	Au		Tonnes	Au	Tonnes	Au		Tonnes	Au	Au
		Mt	g/t		Mt	g/t	Mt	g/t		Mt	g/t	Ounces
	HG Shoots	0.66	6.0	0.89		6.5	0.19		8.2	1.73	6.5	360,600
	Shear Zone	0.14	1.3	3.20		2.2	1.88		3.2	5.21	2.5	426,100
	Ulysses East			0.53		1.8	1.00		1.6	1.53	1.6	80,500
	Total	0.80	5.2	4.61		3.0	3.07		3.0	8.48	3.2	867,200
		November 2019 Mineral Resource Estimate 2.0g/t Global Cut-off
		Measured		Indicated	Inferred				Total
	Type	Tonnes	Au		Tonnes		Au	Tonnes		Au		Tonnes	Au		Au
		Mt	g/t		Mt		g/t	Mt		g/t		Mt	g/t		Ounces
	Total	0.66	6.0		2.42		4.4	1.70		4.1		4.78	4.5		695,900

NB. Rounding errors may occur

Geology and Geological Interpretation

The Ulysses deposit lies within the Archaean-aged Norseman to Wiluna greenstone belt. Host rocks comprise a sequence of dolerite and basalt units. Gold mineralisation is associated with a strongly altered, distinctive assemblage of biotite-sericite-albite-pyrite ± carbonate alteration and quartz veining located within a regionally extensive WNW trending shear zone termed the Ulysses Shear. Depth of complete oxidation is approximately 30m to 40m with depth to fresh rock approximately 45 to 60m.

Within the shear zone, discrete zones of mineralisation are typically 2-8m in thickness and dip at 30- 50o to the north. A number of horizons of magnetic dolerite sills occur within the mafic stratigraphy at Ulysses. Where the main shear cuts through these units, local thickening and increased grade are evident and form plunging shoots with good continuity of grade and thickness over considerable plunge lengths. The zones are visually distinct and typically display sharp boundaries to the mineralisation.

Drilling at Ulysses extends to a maximum depth of 520m below surface. The mineralisation has been interpreted and estimated to that depth and the mineralisation remains open over much of the 2.7km strike length of the deposit.

Drilling Techniques

The Ulysses drill database includes records for 12,100 drill holes for a total of 565,000m of drilling. The Mineral Resource is defined by 592 RC and 122 diamond drill holes for a total of 92,900m, the majority of which were angled at -60o to grid south. The upper part of the deposit has been drilled at

ASX Release: Ulysses Mineral Resource Update.

4

19 December 2019

Genesis Minerals Limited

25m by 25m spacings, with local in-fill to 12.5m spacings. Grade control drilling at Ulysses West has been carried out at 6.25m by 12.5m spacings. The lower portion of the deposit has been drilled at hole spacings of 40m to 80m on 25m to 50m spaced cross sections.

The initial, shallow resource drilling was completed by previous operators between 1993 and 2002. Genesis drilling since 2015 has been concentrated on infill drilling in the Ulysses West pit area and on defining and infilling the major strike and depth extensions of the deposit.

Drill hole collars were surveyed in MGA coordinates using RTK GPS and were transformed to local grid for interpretation and modelling. Down hole surveys were recorded for the majority of holes using electronic multi-shot survey instruments.

Sampling and Sub-sampling Techniques

For RC drilling, a face-sampling hammer was used with samples collected at 1m intervals from mineralised zones with composite sampling of 4m or 5m in unmineralised rocks. Samples were collected through rig-mounted or free standing riffle or cone splitters. Samples were reported to have been kept dry throughout the mineralised zones and visually determined recoveries were good.

Diamond drilling was completed using a HQ or NQ drilling bit for all diamond holes. Core selected from geological observation was cut in half for sampling, with a half core sample sent for assay at measured geological intervals.

Sample Analysis Method

Samples from all resource drilling were assayed at contract laboratories using a fire assay technique. The recent Genesis drilling was assayed at Intertek using a 50g fire assay.

Quality control data was collected from Genesis drilling and included the use of blanks, certified standards and field duplicates. Detailed review of the QAQC data determined that the results were satisfactory and that the drilling database was suitable for resource estimation. The Genesis infill drilling supports the previous drill hole data suggesting that there is no problem with the spatial location and tenor of mineralisation defined in the historic drilling.

Estimation Methodology

The deposit was estimated using ordinary kriging ("OK") grade interpolation of 1m composited data within wireframes prepared using nominal 0.3g/t Au envelopes. In areas where consistent zones of high grade mineralisation were present, high grade shoots were interpreted using either visually identified alteration boundaries or 2g/t assay boundaries. These were modelled as five discrete shoots and lenses within the broader mineralisation envelopes and were estimated separately using hard boundaries.

Interpolation parameters were based on geostatistical analysis and considered the geometry of the individual lodes. A first pass search of 30m with a minimum of 10 samples and a maximum of 22 samples was used which resulted in 14% of the blocks being estimated. A second pass with a search range of 60m filled a further 40% of the blocks. The majority of the remaining blocks were filled with a 120m search and minimum of 2 samples.

High grade cuts were applied to different lodes and ranged from 10g/t to 35g/t. These had negligible impact on the estimated grade.

A Surpac block model was used for the estimate with a block size of 10m EW by 10m NS by 5m vertical with sub-cells of 2.5m by 1.25m by 1.25m.

Bulk density values used in the resource estimate were based on determinations from drill core. Values applied to the model were 2.7t/m3 for duricrust, 2.0t/m3 for Oxide, 2.25t/m3 for Transition and 2.90t/m3 for Primary mineralisation and 2.95t/m3 for Primary waste rock.

ASX Release: Ulysses Mineral Resource Update.

5

19 December 2019

Genesis Minerals Limited

Mineral Resource Classification

The recent infill drilling has confirmed the continuity and extent of the high grade shoots within the deposit with the majority of holes intersecting mineralisation exactly where planned.

The portion of the deposit defined by detailed drilling at 25m by 12.5m to 25m spacing and displaying excellent continuity of grade and structure has been classified as Measured Mineral Resource.

The portions of the deposit with drill hole spacings of 25m to 50m and displaying reasonable continuity of mineralisation and predictable geometry were classified as Indicated Mineral Resource. Indicated Mineral Resource was also assigned to areas drilled at a spacing of up to 60m where they were extensions of well drilled areas and where the geometry and grade distribution were consistent.

The peripheral areas of a number of the lodes were sparsely drilled and variably mineralised and were classified as Inferred Mineral Resource. This was generally extrapolated to a distance of up to 40m past drill hole intersections.

Cut-off Grades

The shallow, sub-cropping nature of the deposit and previous mining studies suggests that good potential remains for open pit mining at the project. The maximum depth potential for open pit is considered to be approximately 200m, so above 200mRL (220m vertical) the Mineral Resource has been reported at a 0.75g/t Au lower cut-off to reflect potential exploitation by open pit mining.

The deeper mineralisation shows excellent continuity of high grade gold mineralisation of sufficient tenor and thickness to have potential for underground mining. To reflect the higher cut-offs expected with potential underground mining, the portion of the deposit below 200mRL has been reported at a cut-off grade of 2.0g/t Au.

Metallurgy

Metallurgical test work has been carried out for each phase of mining at Ulysses confirming that the ore is amenable to conventional cyanide leaching. Ongoing test work by Genesis has confirmed gold recoveries from primary ore to be ~88% to 91%. Further test work is ongoing.

Modifying Factors

No modifying factors were applied to the reported Mineral resources. Parameters reflecting mining dilution, ore loss and metallurgical recoveries will be considered during the planned mining evaluation of the project.

The reported Mineral Resource has been depleted to account for existing open pit mining.

	ENDS
For further information, visit: www.genesisminerals.com.auor please contact
Investors:	Media:
Michael Fowler	Nicholas Read
Managing Director	Read Corporate
Genesis Minerals Limited
T: [phone]	T: [phone]
E:[e-mail]	E:[e-mail]

ASX Release: Ulysses Mineral Resource Update.

6

19 December 2019	Genesis Minerals Limited

COMPETENT PERSONS' STATEMENTS

The information in this report that relates to Exploration Results is based on information compiled by Mr. Michael Fowler who is a full-time employee of the Company, a shareholder of Genesis Minerals Limited and is a member of the Australasian Institute of Mining and Metallurgy. Mr. Fowler has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Fowler consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The Information in this report that relates to Mineral Resources is based on information compiled by Mr Paul Payne, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Payne is a full-time employee of Payne Geological Services and is a shareholder of Genesis Minerals Limited. Mr Payne has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Payne consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

ASX Release: Ulysses Mineral Resource Update.

7

19 December 2019						Genesis Minerals Limited
			JORC Table 1 Section 1 Sampling Techniques and Data
	Criteria		JORC Code Explanation			Commentary
	Sampling	•	Nature and quality of sampling (eg cut		• Drill holes used in the estimate include 122
	techniques		channels, random	chips, or	specific		diamond holes (DD) and 592 reverse circulation
			specialised industry standard measurement		holes. In addition a large amount of regional
				RAB (Rotary Air Blast) and air-core (AC) drilling
			tools appropriate to	the minerals under
				has been completed;
			investigation, such as down hole gamma
				• The shallow RC and DD drilling was completed
			sondes, or handheld XRF instruments, etc).		in 2000 and 2001 by Sons of Gwalia Limited
			These examples should not be taken as		(SGW);
			limiting the broad meaning of sampling.		• Genesis RC and diamond drilling has included
				infill and extensional drilling as well as grade
		•	Include reference to	measures	taken to
			control RC drilling in the Ulysses West pit area;
			ensure sample representivity and the
				• In the deposit area, holes were generally
			appropriate calibration of any measurement		angled at -60o south to optimally intersect the
			tools or systems used.					mineralised zones;

• Aspects of the determination of • RC samples were collected in one metre intervals from a rig mounted cyclone and cone

mineralisation that are Material to the Public

or riffle splitters;

Report. In cases where 'industry standard'

• For RAB drilling, chips from each 1m interval

work has been done this would be relatively

were dumped on the ground and samples

simple (eg 'reverse circulation drilling was

scooped from the chip piles;

used to obtain 1 m samples from which 3 kg

• For AC, RAB and some RC drilling, samples

was pulverised to produce a 30 g charge for

were composited into 2m or 3m intervals for

assay with anomalous intervals resubmitted at

fire assay'). In other cases more explanation

1m intervals. The majority of RC holes were

may be required, such as where there is

sampled and assayed at 1m intervals;

coarse gold that has inherent sampling

• DD core was cut using a diamond saw and half

problems.

Unusual

commodities

or

core samples submitted for analysis.

mineralisation

types

(eg

submarine

nodules) may warrant disclosure of detailed

information.

Drilling

•

Drill type (eg core, reverse circulation, open-

• RC drilling used a face sampling bit;

techniques

hole

hammer,

rotary

air blast,

auger,

• Diamond drilling was carried out with HQ and

Bangka, sonic,

etc) and

details

(eg

core

NQ sized equipment with standard tube;

• Conventional equipment was used for RAB and

diameter, triple or standard tube, depth of

AC drilling.

diamond tails, face-sampling bit or other

type, whether core is oriented and if so, by

what method, etc).

Drill sample

•

Method of recording and assessing core

•

Recoveries from historical drilling are not

recovery

and

chip

sample

recoveries

and

results

documented but for the SGW holes, drilling

assessed.

conditions, recoveries and sample size were

reported to be good;

•

Measures

taken

to

maximise

sample

• Diamond core recovery was recorded in the drill

recovery and ensure representative nature

logs and was good;

of the samples.

• Genesis RC and DD drilling reported excellent

•

Whether

a

relationship

exists

between

•

sample recoveries;

sample recovery and grade and whether

There appears to be no relationship between

sample recovery and sample grades.

sample bias may have occurred due to

preferential

loss/gain

of

fine/coarse

material.

Logging

•

Whether core and chip samples have been

•

All diamond drill holes were logged for

geologically and geotechnically logged to a

recovery, RQD, geology and structure;

level of detail to support appropriate Mineral

• RC, AC and RAB drilling was logged for various

geological attributes;

Resource

estimation,

mining

studies

and

• All drill holes were logged in full.

metallurgical studies.

• Whether

logging

is

qualitative

or

quantitative in nature. Core (or costean,

channel, etc) photography.

•

The total length and percentage of the

relevant intersections logged.

ASX Release: Ulysses Mineral Resource Update.

8

19 December 2019

Genesis Minerals Limited

Criteria

JORC Code Explanation

Commentary

Sub-sampling

•

If core, whether cut or sawn and whether

• Genesis RC samples were collected from a rig

techniques

quarter, half or all core taken.

mounted cyclone and cone splitter in one metre

and sample

•

If non-core, whether riffled, tube sampled,

intervals;

• For historic RC and DD drill programs, samples

preparation

rotary split, etc and whether sampled wet or

were assayed at the Amdel laboratory in

dry.

Kalgoorlie. Genesis samples were assayed at

• For all sample types, the nature, quality and

the Intertek laboratory in Perth. Samples were

appropriateness of the sample preparation

dried and a 1kg split was pulverized to 80%

passing 75 microns;

technique.

•

No QAQC reports have been located for the

•

Quality control procedures adopted for all

historic drilling data;

sub-sampling

stages

to

maximise

•

Genesis drilling included extensive QAQC

representivity of samples.

protocols including blanks, standards and

• Measures taken to ensure that the sampling

duplicates. Results were satisfactory and

is representative of the

in

situ material

supported

the

use

of

the

data in resource

estimation;

collected, including for instance results for

• Sample

sizes

are considered

appropriate

to

field duplicate/second-half sampling.

correctly represent the gold mineralisation

• Whether sample sizes are appropriate to the

based on: the style of mineralisation, the

grain size of the material being sampled.

thickness and consistency of the intersections,

the sampling methodology and assay value

ranges for Au.

Quality of

•

The nature, quality and appropriateness of

•

For SGW RC and DD drilling, analysis was

by

assay data

the

assaying

and

laboratory

procedures

fire assay and atomic absorption spectrometry

and

used

and

whether

the

technique

is

(AAS)

finish

at

the

Amdel

laboratory

in

Kalgoorlie;

laboratory

considered partial or total.

• For Genesis drilling, analysis was by fire assay

tests

•

For

geophysical

tools,

spectrometers,

and atomic absorption spectrometry (AAS)

handheld XRF instruments, etc, the

finish at the Intertek laboratory in Perth;

parameters

used

in

determining

the

• The analytical technique used approaches total

analysis

including

instrument

make

and

•

dissolution of gold in most circumstances.

Genesis drilling

included

extensive

QAQC

model,

reading times,

calibrations factors

protocols

including

blanks,

standards

and

applied and their derivation, etc.

duplicates.

Results

were

satisfactory

and

• Nature

of

quality

control

procedures

supported the use of the data in resource

adopted (eg standards, blanks, duplicates,

estimation.

external laboratory checks) and whether

acceptable levels of accuracy (ie lack of

bias) and precision have been established.

Verification

•

The verification of significant intersections

•

Visual verification of significant intersections

of sampling

by

either

independent

or

alternative

has been carried out by the Competent Person.

and assaying

company personnel.

The mineralisation is visually distinct and scan

logging

of

14

diamond

holes

confirmed

the

• The use of twinned holes.

thickness and approximate tenor of

• Documentation of primary data, data entry

mineralisation;

procedures, data verification, data storage

• Multiple phases of drilling have confirmed the

(physical and electronic) protocols.

overall tenor and distribution of mineralisation;

• Primary data documentation is electronic with

• Discuss any adjustment to assay data.

appropriate verification and validation;

• Data is well organized and securely stored in a

relational database;

• Assay values that were below detection limit

were adjusted to equal half of the detection limit

value.

Location of

•

Accuracy and quality of surveys used to

• Drill hole collar coordinates used MGA Zone 51

data points

locate

drill

holes (collar

and

down-hole

datum with transforms to a local grid;

surveys),

trenches,

mine

workings

and

• Drill hole collars have been accurately surveyed

either by licenced surveyors or using differential

other locations used in Mineral Resource

GPS;

estimation.

• Topographic

control

is

from

detailed

• Specification of the grid system used.

topographic survey in the vicinity of the

•

Quality

and

adequacy

of

topographic

resource and from drill hole collar surveys

control.

elsewhere.

Data spacing

•

Data spacing for reporting of Exploration

• For RAB and AC drilling, the drill hole spacing

and

Results.

•

is variable and up to 400m by 100m;

distribution

•

Whether the data spacing and distribution is

For RC and DD drilling, the hole spacing is

largely 25m by 25m in the upper part of the

sufficient

to

establish

the

degree

of

deposit

with some

12.5m

infill. The

deeper

ASX Release: Ulysses Mineral Resource Update.

9

19 December 2019					Genesis Minerals Limited
	Criteria			JORC Code Explanation				Commentary
				geological and grade continuity appropriate			portion of the deposit has been drilled at 40m to
				for the Mineral Resource and Ore Reserve			80m hole spacings on 25m spaced cross
				estimation procedure(s) and classifications			sections;
					• During 2016/17, grade control drilling was
				applied.
						undertaken at 6.25m by 12.5m drill spacing
			•	Whether sample compositing has been
					over a strike length of 140m in the western
				applied.		•	portion of the deposit;
							The drilling has demonstrated sufficient
								continuity in both geological and grade
								continuity to support the definition of Mineral
								Resources, and the classifications applied
								under the 2012 JORC Code;
							• Samples used in the Mineral Resource were
								based largely on 1m samples without
								compositing. Compositing of DD holes was
								required to provide equal support during
								estimation.
	Orientation of		•	Whether the orientation of sampling	•	Holes were generally angled to grid south or to
	data in			achieves unbiased sampling of possible			optimize the intersection angle with the
	relation to			structures and the extent to which this is			interpreted structures;
				• No orientation based sampling bias has been
	geological			known, considering the deposit type.
					identified in the data.
	structure		•	If the relationship between the drilling
				orientation and the orientation of key
				mineralised structures is considered to have
				introduced a sampling bias, this should be
				assessed and reported if material.
	Sample		•	The measures taken to ensure sample		•	Genesis samples were carefully identified and
	security			security.			bagged on site for collection and transport by
								commercial or laboratory transport.
	Audits or		•	The results of any audits or reviews of		•	Sampling and data procedures were audited by
	reviews			sampling techniques and data.			PayneGeo as part of the estimation program.
							• All work was carried out by reputable
								companies using industry standard methods.

ASX Release: Ulysses Mineral Resource Update.

10

19 December 2019Genesis Minerals Limited

JORC Table 1 Section 2 Reporting of Exploration Results

Criteria

JORC Code explanation

Commentary

Mineral

•

Type,

reference

name/number,

location

•

The deposit is located within Mining Lease

tenement and

and ownership including agreements or

M40/166 which is owned by Ulysses Mining Pty

land

tenure

material issues with third parties such as

•

Ltd

status

joint

ventures,

partnerships,

overriding

The Mining Lease was granted for a term of 21

royalties, native title interests, historical

•

years and expires 28 January 2022

sites, wilderness or national park and

The tenements are in good standing.

environmental settings.

• The security of the tenure held at the time of

reporting along with any known impediments

to obtaining a license to operate in the area.

Exploration

•

Acknowledgment

and

appraisal

of

•

The tenement was previously held in a joint

done by other

exploration by other parties.

venture between Sons of Gwalia Limited

parties

("SWG") and Dalrymple Resources NL. The

majority of drilling was completed by SWG

between 1999 and 2001.

• The project was acquired by St Barbara Limited

("SMB") in 2004. SBM work was limited to

resource modelling and geological review.

Geology

• Deposit type, geological setting and style of

•

Ulysses is an orogenic, lode-style deposit

mineralisation.

hosted within mafic rocks of the Norseman-

Wiluna greenstone belt

•

Gold mineralisation occurs within a strong zone

of shearing and biotite-sericite-pyrite alteration

typically 5-10m true width.

•

High grade shoots have developed at the

intersection of the Ulysses shear and magnetic

dolerite sills within the mafic stratigraphy.

•

The shear zone strikes east-west and dips 30-

40o to the north.

Drill

hole

• A summary of all information material to the

•

Results of previous exploration at the project are

information

under-standing of the exploration results

provided in numerous previous ASX releases.

including a tabulation of the following

The most recent release is dated 19 November

information for all Material drill holes:

•

2019.

• easting

and

northing

of the

drill

hole

Drill hole locations are shown on the map within

collar

the body of this ASX release.

• elevation or RL (Reduced Level -

elevation above sea level in metres) of

the drill hole collar

• dip and azimuth of the hole

• down hole length and interception depth

• hole length

• If the exclusion of this information is justified

on the basis that the information is not

Material and this exclusion does not detract

from the understanding of the report, the

Competent Person should clearly explain

why this is the case.

Data

•

In reporting Exploration Results, weighting

•

Length weighted average grades have been

aggregation

averaging

techniques,

maximum

and/or

reported;

methods

minimum grade truncations (e.g. cutting of

high grades) and cut-off grades are usually

•

No high-grade cuts have been applied to

Material and should be stated.

reported exploration results;

• Where

aggregate

intercepts incorporate

short lengths of high grade results and

•

Metal equivalent values are not being reported.

longer lengths of low grade results, the

procedure used for such aggregation should

be stated and some typical examples of

such aggregations should be shown in

detail.

• The assumptions used for any reporting of

metal equivalent values should be clearly

stated.

ASX Release: Ulysses Mineral Resource Update.

11

19 December 2019

Genesis Minerals Limited

Criteria

JORC Code explanation

Commentary

Relationship

•

These

relationships

are

particularly

• Drill holes are angled to local grid south which is

between

important in the reporting of Exploration

approximately perpendicular to the orientation of

mineralisation

Results.

the mineralised trend.

widths

and

•

If the geometry of the mineralisation with

intercept

respect to the drill hole angle is known, its

lengths

nature should be reported.

•

If it is not known and only the down hole

lengths are reported, there should be a clear

statement to this effect (e.g.'down hole

length, true width not known').

Diagrams

•

Appropriate maps and sections (with scales)

• A plan showing the Ulysses drilling is included

and tabulations of intercepts should be

within this ASX release.

included for any significant discovery being

reported. These should include, but not be

limited to a plan view of drill hole collar

locations and appropriate sectional views.

Balanced

•

Accuracy and quality of surveys used to

• Drill hole collars were accurately surveyed using

Reporting

locate drill holes (collar and down-hole

electronic instruments or differential GPS;

surveys), trenches, mine workings and

• The majority of resource holes had down hole

other locations used in Mineral Resource

surveys. Genesis holes and many historic holes

estimation.

were surveyed by gyro or EMS, but for many

•

Where

comprehensive

reporting of all

other holes, the method is not known

Exploration

Results

is

not

practicable,

• The significant results of all resource drill holes

have been previously reported.

representative reporting of both low and high

• Results of RAB and AC holes are not material to

grades and/or widths should be practiced to

the project

avoid misleading reporting of Exploration

Results.

Other

•

Other exploration data, if meaningful and

•

Regional exploration programs have been

substantive

material, should be reported including (but

conducted including RAB drilling and

exploration

not limited to): geological observations;

geochemical sampling. The results have not

data

geophysical

survey

results;

geochemical

been used in the Mineral Resource estimate.

survey results; bulk samples - size and

method of treatment; metallurgical test

results;

bulk

density,

groundwater,

geotechnical

and

rock

characteristics;

potential

deleterious

or

contaminating

substances.

Further work

•

The nature and scale of planned further

•

Further work at the deposit will include

work (e.g. tests for lateral extensions or

extensional and infill drilling in the high grade

depth extensions or large- scale step-out

portions of the deposit.

drilling).

• Along strike and down dip lode extensions are

• Diagrams clearly highlighting the areas of

possible extensions, including the main

likely targets for further exploration.

geological interpretations and future drilling

areas, provided this information is not

• Regional exploration results will be assessed to

commercially sensitive.

identify other targets.

ASX Release: Ulysses Mineral Resource Update.

12

19 December 2019			Genesis Minerals Limited
		JORC Table 1 Section 3 Estimation and Reporting of Mineral Resources
	Criteria		JORC Code explanation		Commentary
	Mineral		•	Type, reference name/number, location	•	The deposit is located within Mining Lease
	tenement and	and ownership including agreements or		M40/166 which is owned by Ulysses Mining Pty
	land	tenure	material issues with third parties such as	•	Ltd;
	status			joint ventures, partnerships, overriding	The Mining Lease was granted for a term of 21
				royalties, native title interests, historical	•	years and expires 28 January 2022;
				sites, wilderness or national park and	The tenements are in good standing.
				environmental settings.

• The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.

Exploration	•	Acknowledgment and	appraisal	of	•	The tenement was previously held in a joint
done by other		exploration by other parties.			venture between Sons of Gwalia Limited
parties								("SWG") and Dalrymple Resources NL. The
								majority of drilling was completed by SWG
								between 1999 and 2001;
							• The project was acquired by St Barbara Limited
								("SMB") in 2004. SBM work was limited to
								resource modelling and geological review.
Geology		• Deposit type, geological setting and style of	•	Ulysses is an orogenic, lode-style deposit
			mineralisation.				hosted within mafic rocks of the Norseman-
								Wiluna greenstone belt;
							•	Gold mineralisation occurs within a strong zone
								of shearing and biotite-sericite-pyrite alteration
								typically 5-10m in true width;
							•	High grade shoots have developed at the
								intersection of the Ulysses shear and magnetic
								dolerite sills within the mafic stratigraphy;
							•	The shear zone strikes east-west and dips 30-
								40o to the north.
Drill	hole	• A summary of all information material to the	•	Results of previous exploration at the project are
information		under-standing of the exploration results		provided in numerous previous ASX releases.
			including a tabulation of the following		The most recent release is dated 19 November
			information for all Material drill holes:		•	2019;
			• easting	and northing	of the drill	hole	Drill hole locations are shown on the map within
			collar					the body of this ASX release.
			• elevation or RL (Reduced Level -
			elevation above sea level in metres) of
			the drill hole collar
			• dip and azimuth of the hole
			• down hole length and interception depth
			• hole length
		• If the exclusion of this information is justified
			on the basis that the information is not
			Material and this exclusion does not detract
			from the understanding of the report, the
			Competent Person should clearly explain
			why this is the case.
Data		•	In reporting Exploration Results, weighting	•	Length weighted average grades have been
aggregation		averaging	techniques,	maximum and/or		reported;
methods			minimum grade truncations (e.g. cutting of
			high grades) and cut-off grades are usually	•	No high-grade cuts have been applied to
			Material and should be stated.			reported exploration results;
		• Where aggregate intercepts incorporate
			short lengths of high grade results and	•	Metal equivalent values are not being reported.
			longer lengths of low grade results, the
			procedure used for such aggregation should
			be stated and some typical examples of
			such aggregations should be shown in
			detail.
		• The assumptions used for any reporting of
			metal equivalent values should be clearly
			stated.

ASX Release: Ulysses Mineral Resource Update.

13

19 December 2019

Genesis Minerals Limited

Criteria

JORC Code explanation

Commentary

Relationship

•

These

relationships

are

particularly

• Drill holes are angled to local grid south which is

between

important in the reporting of Exploration

approximately perpendicular to the orientation of

mineralisation

Results.

the mineralised trend.

widths

and

•

If the geometry of the mineralisation with

intercept

respect to the drill hole angle is known, its

lengths

nature should be reported.

•

If it is not known and only the down hole

lengths are reported, there should be a clear

statement to this effect (e.g.'down hole

length, true width not known').

Diagrams

•

Appropriate maps and sections (with scales)

• A plan showing the Ulysses drilling is included

and tabulations of intercepts should be

within this ASX release.

included for any significant discovery being

reported. These should include, but not be

limited to a plan view of drill hole collar

locations and appropriate sectional views.

Balanced

•

Accuracy and quality of surveys used to

• Drill hole collars were accurately surveyed using

Reporting

locate drill holes (collar and down-hole

electronic instruments or differential GPS;

surveys), trenches, mine workings and

• The majority of resource holes had down hole

other locations used in Mineral Resource

surveys. Genesis holes and many historic holes

estimation.

were surveyed by gyro or EMS, but for many

•

Where comprehensive

reporting

of all

other holes, the method is not known;

Exploration

Results

is

not

practicable,

• The significant results of all resource drill holes

have been previously reported;

representative reporting of both low and high

• Results of RAB and AC holes are not material to

grades and/or widths should be practiced to

the project.

avoid misleading reporting of Exploration

Results.

Other

•

Other exploration data, if meaningful and

• Regional exploration programs have been

substantive

material, should be reported including (but

conducted including RAB drilling and

exploration

not limited to): geological observations;

geochemical sampling. The results have not

data

geophysical

survey

results;

geochemical

been used in the Mineral Resource estimate.

survey results; bulk samples - size and

method of treatment; metallurgical test

results;

bulk

density,

groundwater,

geotechnical

and

rock

characteristics;

potential

deleterious

or

contaminating

substances.

Further work

•

The nature and scale of planned further

• Further work at the deposit will include mining

work (e.g. tests for lateral extensions or

studies to determine the potential for

depth extensions or large- scale step-out

development of the deposit;

drilling).

• Along strike and down dip lode extensions are

• Diagrams clearly highlighting the areas of

likely targets for further exploration;

possible

extensions, including the

main

• Regional exploration results will be assessed to

geological interpretations and future drilling

identify other targets.

areas, provided this information is not

commercially sensitive.

ASX Release: Ulysses Mineral Resource Update.

14

19 December 2019

Genesis Minerals Limited

JORC Table 1 Section 3 Estimation and Reporting of Mineral Resources

Criteria

JORC Code explanation

Commentary

Database

•

Measures taken to ensure that data has

•

Data was captured electronically to prevent

integrity

not been corrupted by, for example,

transcription errors.

transcription or keying errors, between its

•

Validation included comparison of gold results to

initial collection and its use for Mineral

logged geology to verify mineralised intervals.

Resource estimation purposes.

• Data validation procedures used.

Site visits

•

Comment on any site visits undertaken by

•

Numerous site visits were undertaken by the

the Competent Person and the outcome

Competent Person between 2015 and 2019 to

of those visits.

verify the extent of mining operations, locate drill

•

If no

site

visits

have

been

undertaken

collars from previous drilling, review drilling and

indicate why this is the case.

mining operations and to confirm that no obvious

impediments to future project exploration or

development were present.

Geological

•

Confidence in (or conversely, the

•

The confidence in the geological interpretation is

interpretation

uncertainty

of)

the

geological

considered to be good, with highly continuous

interpretation of the mineral deposit.

mineralised structures defined by good quality

•

Nature of the data used and of any

•

drilling.

assumptions made.

The deposit consists of moderate dipping

•

The

effect,

if

any,

of

alternative

mineralised lodes which have been interpreted

interpretations

on

Mineral

Resource

based on logging and assay data from samples

estimation.

taken at regular intervals from angled drill holes.

•

The use of geology in guiding and

controlling Mineral Resource estimation.

•

The

factors

affecting

continuity

both

of

grade and geology.

Dimensions

•

The extent and variability of the Mineral

•

The Ulysses Mineral Resource area extends over

Resource expressed as length (along

a strike length of 2,700m and has a vertical extent

strike or otherwise), plan width, and depth

of 520m from surface at 420mRL to -100mRL.

below surface to the upper and lower

limits of the Mineral Resource.

Estimation

•

The nature and appropriateness of the

•

Using parameters derived from modelled

and modelling

estimation technique(s) applied and key

variograms, Ordinary Kriging (OK) was used to

techniques

assumptions,

including

treatment

of

•

estimate average block grades within the deposit.

extreme grade values, domaining,

Surpac software was used for the estimation.

interpolation parameters

and maximum

•

High grade cuts of between 10g/t and 35g/t were

distance of extrapolation from data

•

applied to 1m composite data.

points. If a computer assisted estimation

The parent block dimensions used were 10m NS

method was chosen include a description

by 10m EW by 5m vertical with sub-cells of 1.25m

of computer software and parameters

by 2.5m by 1.25m. The parent block size was

used.

selected on the basis KNA and were

•

The

availability

of

check

estimates,

approximately 50% of the average drill hole

previous

estimates

and/or

mine

spacing in the deposit area beneath the existing

pit.

production

records

and

whether

the

• Historical production records were available for

Mineral

Resource

estimate

takes

an open pit completed in 2002 and a portion of

appropriate account of such data.

historic grade control data was available which

•

The

assumptions

made

regarding

largely confirms the current interpretations.

recovery of by-products.

• Production from the GMD mining in 2016 and

•

Estimation

of

deleterious

elements

or

2017 compared well with the resource model.

other non-grade

variables

of economic

•

Previous

resource

estimates

have

been

significance

(eg

sulphur

for

acid

mine

completed

and compare well with the

current

drainage characterisation).

estimate.

• In the case of block model interpolation,

• No assumptions have been made regarding

the block size in relation to the average

recovery of by-products.

sample

spacing

and

the

search

• No estimation of deleterious elements was

employed.

carried out. Only Au

was interpolated into the

•

Any

assumptions behind

modelling

of

block model.

selective mining units.

• An orientated ellipsoid search was used to select

•

Any

assumptions

about

correlation

data and was based on parameters derived from

between variables.

the variography.

•

Description

of

how

the

geological

• An initial interpolation pass was used with a

interpretation

was used

to

control

the

maximum

range of

30m which

filled

14% of

resource estimates.

blocks. A second pass radius of 60m filled 40%

• Discussion of basis for using or not using

of the blocks and a third pass range of 120m filled

grade cutting or capping.

ASX Release: Ulysses Mineral Resource Update.

15

19 December 2019

Genesis Minerals Limited

Criteria

JORC Code explanation

Commentary

• The process of validation, the checking

the majority of the remaining blocks.

process used, the comparison of model

• A minimum of 10 samples was used for the first

data to drill hole data, and use of

pass, and this was reduced to six and then 2 for

reconciliation data if available.

the subsequent passes. A maximum of 22

samples was used for all passes.

• Selective mining units were not modelled in the

Mineral Resource model. The block size used in

the model was based on KNA, drill sample

spacing and lode orientation.

• Only Au assay data was available, therefore

correlation analysis was not possible.

• The deposit mineralisation was constrained by

wireframes constructed using a 0.3g/t Au cut-off

grade in association with logged geology.

• Internal high grade shoots were interpreted

based on logged geology or a 2.0g/t cut-off

grade.

• The wireframes were applied as hard boundaries

in the estimate.

• For validation, trend analysis was completed by

comparing the interpolated blocks to the sample

composite data within 25m easting intervals and

by 10m vertical intervals.

Moisture

• Whether the tonnages are estimated on a

• Tonnages and grades were estimated on a dry in

dry basis or with natural moisture, and the

situ basis. No moisture values were reviewed.

method of determination of the moisture

content.

Cut-off

• The basis of the adopted cut-off grade(s)

• The Mineral Resource above 200mRL has been

parameters

or quality parameters applied.

reported at a 0.75g/t Au cut-off based on

assumptions about economic cut-off grades for

open pit mining.

• Below 200mRL, the Mineral Resource has been

reported at a cut-off grade of 2.0g/t Au to reflect

potential underground mining.

Mining factors

•

Assumptions

made

regarding

possible

• The deposit has previously been mined using

or

mining

methods,

minimum

mining

selective open pit mining methods. It is assumed

assumptions

dimensions and internal (or, if applicable,

that further open pit mining is possible at the

external) mining dilution. It is always

project.

necessary as part of the process of

• Portions of the deposit are considered to have

determining

reasonable

prospects for

sufficient grade and continuity to be considered for

eventual economic extraction to consider

underground mining.

potential mining methods, but the

• No mining parameters or modifying factors have

assumptions

made

regarding

mining

been applied to the Mineral Resource.

methods

and

parameters

when

estimating Mineral Resources may not

always be rigorous. Where this is the

case, this should be reported with an

explanation of the basis of the mining

assumptions made.

Metallurgical

• The basis for assumptions or predictions

•

Extensive metallurgical test work has been

factors

or

regarding metallurgical amenability. It is

undertaken by Genesis and previous operators at

assumptions

always necessary as part of the process

the project and has been reviewed;

of determining reasonable prospects for

• Results of recent test work and processing

eventual economic extraction to consider

results from the 2016/2017 mining have

potential metallurgical methods, but the

demonstrated that good gold recovery can be

assumptions

regarding

metallurgical

expected from conventional processing methods.

treatment

processes

and parameters

made when reporting Mineral Resources

may not always be rigorous. Where this is

the case, this should be reported with an

explanation of the basis of the

metallurgical assumptions made.

Environmental

•

Assumptions

made

regarding

possible

•

The previous mining operation included the

factors

or

waste and process residue disposal

development of waste dumps at the site.

assumptions

options. It is always necessary as part of

•

The area is not known to be environmentally

ASX Release: Ulysses Mineral Resource Update.

16

19 December 2019									Genesis Minerals Limited
Criteria		JORC Code explanation				Commentary
	the process of determining reasonable		sensitive and there is no reason to think that
	prospects	for	eventual economic		approvals for further development including the
	extraction to consider the potential		dumping of waste would not be approved.
	environmental impacts of the mining and
	processing operation. While at this stage
	the	determination		of	potential
	environmental impacts, particularly for a
	greenfields project, may not always be
	well advanced, the status of early
	consideration	of	these	potential
	environmental	impacts	should	be
	reported. Where these aspects have not
	been considered this should be reported
	with an explanation of the environmental
	assumptions made.
Bulk density	• Whether	assumed	or	determined.	If	•	Bulk density determinations were made on
	assumed, the basis for the assumptions.		samples from drill core using the weight in
	If determined, the method used, whether		air/weight in water method.
	wet	or	dry,	the	frequency	of	the	•	Bulk density values used in the resource were
	measurements, the nature, size and		2.0t/m3, 2.25t/m3 and 2.90t/m3 for oxide,
	representativeness of the samples.			transitional and fresh mineralisation respectively.

• The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.
• Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

Classification	• The basis	for the classification	of the	•	Mineral Resources were classified in accordance
	Mineral	Resources	into	varying		with the Australasian Code for the Reporting of
	confidence categories.				Exploration Results, Mineral Resources and Ore

• Whether appropriate account has been Reserves (JORC, 2012). The Mineral Resource

		taken of all relevant factors (ie relative	was classified as Measured, Indicated and
		confidence in tonnage/grade estimations,	Inferred Mineral Resource on the basis of data
		reliability of input data, confidence in	quality, sample spacing, and lode continuity;
		continuity of geology and metal values,	• Measured Mineral Resource was defined where
		quality, quantity and distribution of the	robust continuity of mineralisation was evident
		data).	across the area drilled by 6.25m spaced holes,
		• Whether the result appropriately reflects	confined to the lodes in the west of the deposit;
		the Competent Person's view of the	• Measured Mineral Resource was also defined
		deposit.	where infill drilling to 25m by 12.5m-25m had
			confirmed the excellent continuity of structure
			and grade in the vicinity of the high grade lodes;
			• The Indicated portion of the Mineral Resource
			was defined where good continuity of
			mineralisation was evident and within the drilled
			area where hole spacing ranged from 25m by
			25m or less in the well drilled portion to 40m-60m
			by 40m spacing in the deeper extensions;
			• The remaining portions of the deposit were
			classified as Inferred Mineral Resource due to
			poor grade continuity or sparse drilling;
			• The definition of mineralised zones is based on
			sound geological understanding producing a
			robust model of mineralised domains. This model
			has been confirmed by previous mining which
			supported the interpretation;
			• The Mineral Resource estimate appropriately
			reflects the view of the Competent Person.
Audits	or	• The results of any audits or reviews of	• A documented internal audit of the Mineral
reviews		Mineral Resource estimates.	Resource estimate was completed by the
			consulting company responsible for the estimate.
Discussion	of	• Where appropriate a statement of the	• The Ulysses Mineral Resource estimate is
relative		relative accuracy and confidence level in	considered to be reported with a high degree of

ASX Release: Ulysses Mineral Resource Update.

17

19 December 2019	Genesis Minerals Limited

	Criteria		JORC Code explanation
	accuracy/		the Mineral Resource estimate using an
	confidence		approach	or	procedure	deemed
			appropriate by the Competent Person.
			For example, the application of statistical
			or geostatistical procedures to quantify
			the relative accuracy of the resource
			within stated confidence limits, or, if such
			an approach is not deemed appropriate,
			a qualitative discussion of the factors that
			could affect the relative accuracy and
			confidence of the estimate.
			• The statement should specify whether it
			relates to global or local estimates, and, if
			local, state the relevant tonnages, which
			should be relevant to technical and
			economic	evaluation. Documentation
			should include assumptions made and
			the procedures used.
			• These statements of relative accuracy
			and confidence of the estimate should be
			compared with production data, where
			available.

Commentary

confidence. The consistent lode geometry and continuity of mineralisation is reflected in the Mineral Resource classification. The data quality is good and the drill holes have detailed logs produced by qualified geologists.

• The Mineral Resource statement relates to global estimates of tonnes and grade.
• The deposit is not currently being mined. Production records are available for the two phases of open pit mining completed at the deposit.

ASX Release: Ulysses Mineral Resource Update.

18