Genesis Minerals : Outstanding Shallow Drill Results at Orient Well NW

Genesis Minerals Limited (ASX: GMD) ASX Announcement - 14 January 2019

OUTSTANDING SHALLOW DRILL RESULTS CONFIRM EMERGING SATELLITE OXIDE DISCOVERY AT

ORIENT WELL NW, ULYSSES GOLD PROJECT

Plus: step-out drilling continues to identify extensions to 760,000oz Mineral Resource

Key Points

• • Follow-up drilling at Orient Well NW, located 10km east of the Ulysses deposit, confirms a significant zone of shallow oxide gold mineralisation with assays including:

  • o 20m @ 9.10g/t Au from 50m 18USRC302

  • o 28m @ 0.69g/t Au from 62m 18USRC264

    • o including 5m @ 1.52g/t Au from 73m

  • o 8m @ 1.80g/t Au from 108m 18USRC265

• • Results continue to demonstrate the potential to define Resources outside of the Ulysses Deposit, highlighting the under-explored nature of the broader project.

Ulysses Extensional Drilling Update

• • Further encouraging results received from wide-spaced, extensional RC drilling targeting strike extensions to the Ulysses Mineral Resource (7.1Mt @ 3.3g/t gold for 760,400oz1).

• • Significant new extensional drilling results at Ulysses East, outside of the Resource, include:

  • o 10m @ 3.05g/t Au from 102m 18USRC293

  • o 5m @ 5.08g/t Au from 75m 18USRC287

• • Potential high-grade gold shoot position defined at Ulysses East to be systematically tested at depth.

• • Extensional drilling immediately east of the Resource demonstrates that mineralisation continues outside and to the east of the Resource with results including:

  • o 4m @ 3.32g/t Au from 218m 18USRC272

  • o 5m @ 2.15g/t Au from 167m 18USRC275

  • o 4m @ 2.44g/t Au from 150m 18USRC282

• • Drilling to recommence at the end of January 2019.

Genesis Minerals Limited (ASX: GMD) is pleased to advise that it has intersected further significant shallow oxide mineralisation at the Orient Well NW prospect (see Figures 1 to 3), located 10km east of the 760,000oz Ulysses Mineral Resource at its 100%-owned Ulysses Gold Project, 30km south of Leonora in WA.

The new results have significantly increased the Company's confidence in the emerging oxide opportunity at Orient Well NW, which is the first satellite prospect to be drilled outside of the existing Resource - which has been the main focus of drilling to date.

1 Measured, Indicated and Inferred Resource of 7.1Mt @ 3.3g/t gold for 760,400oz - refer ASX announcement, 9 October 2018 and Table 2 in this announcement.

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

The recent drilling at Orient Well NW returned a best result of 20m @ 9.10g/t gold and a number of wide zones of lower grade mineralisation including 5m @ 1.52g/t gold within a broader zone of 28m @ 0.69g/t gold and 8m @ 1.80g/t gold. The drilling has highlighted 1.5km of highly prospective strike which will be systematically tested for potential open pittable Mineral Resources in the first half of 2019. This mineralised strike remains open.

Meanwhile, further high-grade results have been returned from the ongoing extensional drilling at the main Ulysses Deposit. The latest results continue to highlight the potential for significant extensions to the current Mineral Resource as drilling continues to scope out the broader mineralised system along the Ulysses Shear.

Genesis Managing Director Michael Fowler said: "The outstanding results generated from shallow RC drilling at Orient Well NW show just how under-explored the broader Ulysses Project is. We have now outlined a very prospective oxide zone which spans a strike length of at least 1.5km. Achieving intercepts such as 20m at 9g/t Au in a completely greenfields position is an outstanding result, and we are really looking forward to drilling out this satellite prospect to a Resource level during the first half of 2019.

"At the same time, we have now received the remaining results from extensional drilling completed at Ulysses last year following the updated 760,000oz Mineral Resource announcement. The assays have identified step-outs to the mineralisation at Ulysses East and confirmed the presence of a potential new high-grade shoot position which needs to be systematically drill tested at depth.

"Drilling will resume at Ulysses at the end of the month, initially with one rig focusing on extensions at Ulysses and drilling out Orient Well NW. We will progressively bring more rigs online as the results begin to flow. Our overall objective is to deliver another upgrade to the Ulysses Mineral Resource by the end of Q2 2019."

Orient Well NW

Significant gold mineralisation was identified at Orient Well NW, located 10km east of the Ulysses Mineral Resource, in August 2018 with wide zones of gold mineralisation identified from a first-pass, three-hole RC program (Figure 1).

Figure 1. Orient Well NW location ~10km east of the Ulysses Mineral Resource.

Follow-up drilling comprising a total of 12 holes (18USRC260 to 265 and 18USRC299 to 304) was designed to confirm the orientation and extent of the gold mineralisation intersected in this initial drilling.

The follow-up drilling completed late last year has defined a zone of mostly shallow oxide mineralisation over a strike length of approximately 250m which remains open both along strike and at depth (Figure 2).

Figure 2. Plan view of Orient Well NW drill-hole locations. Mineralisation open in all directions. Area of Figure 3 shown as area of RC drilling.

Drilling returned a significant result of 20m @ 9.10g/t gold from 50m in 18USRC302, which was drilled grid south on 347,120E (see Figure 3). The intercept was based on 5m composite results with individual 5m intervals comprising 12.3g/t Au, 5.5g/t Au, 14.5g/t Au and 4.0g/t Au. The intersection occurs in saprolitic clays in a deeply weathered profile beneath ~15m of transported cover.

The controls on the primary mineralisation are unclear at this stage with drilling yet to test fresh rock in any detail. However, the mineralisation is interpreted to be associated with a strongly deformed felsic - sedimentary package, which are different host rocks to the mafic dominated sequence at Ulysses.

Significant results (see Figure 3 and Table 1) from the recent drilling at Orient Well NW include:

o	20m @ 9.10g/t Au from 50m	18USRC302*
o	10m @ 0.59g/t Au from 85m	18USRC301*
o	5m @ 0.96g/t Au from 60m	18USRC303*
o	40m @ 0.46g/t Au from 60m	18USRC262
o
o

15m @ 0.71g/t Au from 49m 18USRC263

• o including 7m @ 0.68g/t Au from 60m

• o including 17m @ 0.67g/t Au from 83m

• o including 8m @ 1.00g/t Au from 87m

1m @ 5.70g/t Au from 115m 18USRC262

• o including 4m @ 1.24g/t Au from 49m

• o including 5m @ 1.02g/t Au from 59m

• o 28m @ 0.69g/t Au from 62m

  18USRC264

  • o including 5m @ 1.52g/t Au from 73m

• o 8m @ 1.80g/t Au from 108m

18USRC265

Only down-hole lengths are reported. * Results are based on 5m composite sampling for 18USRC299 to 304.

The Orient Well NW mineralised corridor represents a significant open pit target.

Figure 3. Section 347,000E looking west. Note 18USRC224 has been drilled grid west and collared some 60mE of the section.

One line of aircore drilling (see Figure 3) has been completed on 347,400E which returned a strongly anomalous gold intercept of 5m @ 0.2g/t gold, which is interpreted to be located within the eastern extensions of the WNW/ESE gold mineralised corridor that has been defined by RC drilling.

No RC drilling has taken place to the east of section 347,120E (east of hole 18USRC302) and the area to the east represents a significant drill target with over 300m of strike planned to be drill tested.

There is strong potential to define significant mineralisation along the Aircore-defined gold trend over a strike length of 1.5km. This trend is open along strike and requires further systematic Aircore drilling to define the limits of the anomaly.

Ulysses East Drilling Results

Results have also been received from 10 wide-spaced RC holes (18USRC284 to 293), drilled at +50m to 100m centres on the Ulysses shear at Ulysses East (see right hand side of Figure 4) testing potential strike and depth extensions to the Ulysses Mineral Resource.

Significant gold mineralisation has been intersected associated with a third dolerite unit (known as the upper MQD) (see Figures 4 and 5).

Hole 18USRC293 drilled at the eastern limit of the upper MQD returned a significant result of 10m @ 3.05g/t Au from 102m (see Figure 5). Gold mineralisation is hosted by a sheared, biotite - silica altered quartz dolerite with sulphide (dominantly pyrite) content ranging from 2 to 10%.

Drilling at Ulysses East has defined the intersection of the upper MQD unit and the Ulysses Shear over an intersectional strike of ~400m. The intersection of the upper MQD and the Ulysses Shear plunges shallowly to moderately to the north-east (shown in Plan View in Figure 4). The intersection of the Ulysses shear and magnetic, upper MQD represents a significant drill target that will be systematically drill tested in 2019.

The lower and middle MQD units (see Figure 4) host high-grade gold shoots beneath the Ulysses West and Ulysses open pits. These high-grade gold shoots are known to have significant (+800m) down-plunge extents which are open at depth.

Lower MQD

Middle MQD

Upper MQD

Ulysses East

Figure 4. Plan view showing hole locations (white circles with black outline) from recent 2018 drill results. Green shaded zones highlight the surface projections of intersection of quartz dolerite (MQD) units with the Ulysses

Shear. The white box highlights the Ulysses East area.

Hole 18USRC289 returned an intercept of 2m @ 1.12g/t Au. While the intercept is low grade, the gold mineralisation is associated with a 6m wide zone of sheared, biotite altered, pyritic quartz dolerite. This intercept is located approximately 70m below (down hole) of the Ulysses Shear towards the base of the upper MQD unit. 18USRC289 is the only hole into this potential shear zone which will be systematically drill tested in 2019.

Intersections from the recent extensional drilling include:

o	10m @ 3.05g/t Au from 102m	18USRC293
o	5m @ 5.08g/t Au from 75m	18USRC287
o	1m @ 3.22g/t Au from 211m	18USRC285
o	3m @ 1.85g/t Au from 170m	18USRC286
o	4m @ 1.08g/t Au from 182m	18USRC286
o	6m @ 1.28g/t Au from 149m	18USRC288
o	2m @ 1.12g/t Au from 203m	18USRC289