Tough times in the West Australian gold industry have opened up the prospect of consolidation, with Genesis Resources Limited (ASX:GES) said to be in talks with Dacian Gold Limited (ASX:DCN) over a scrip bid. Dacian last month suspended mining at the open pit at its Mt Morgans hub, east of Leonora. Genesis's two million ounce Leonora gold project sits within striking distance of Dacian's mill, which has struggled for a consistent source of feed.