Genesis Resources Draws Down $1.38M Loans, Plans September Drilling in NT

Consolidation of Plavica Ownership

Genesis Resources Limited has taken a significant step forward by acquiring the remaining 38% interest in its North Macedonian joint venture company, Silgen, thereby becoming the sole owner of the Plavica Gold-Copper-Silver Project. This acquisition, completed in exchange for a 4% royalty on future production, terminates the joint venture agreement with local partner RIK Sileks Ad Kratovo and removes any security interests held by Sileks in the project.

This move consolidates Genesis’ control over a high sulphidation epithermal deposit situated within the Carpathian Volcanic Arc, a region known for its rich mineralisation. The company is now focused on completing the final environmental studies required for mining approval, a critical regulatory milestone that will enable project development to proceed.

Environmental Progress and Community Engagement

During the quarter, Genesis continued baseline environmental monitoring at Plavica, including tree planting initiatives coordinated with a local university and a government forestry company. These efforts underscore the company’s commitment to sustainable development and community collaboration, which are increasingly important factors in securing regulatory and social license to operate.

Australian Exploration Plans Await Approvals

On the Australian front, Genesis is preparing for follow-up drilling programs at its Alice Springs and Arltunga tenements in the Northern Territory. Notably, previous drilling in 2023 at Alice Springs returned promising intercepts, including 5 meters at 1.02% copper and 0.26 grams per tonne gold, while Arltunga yielded 6 meters at 3.03 grams per tonne gold from 30 meters depth.

However, no field work was conducted during the June quarter as the company awaits ground clearance and sacred site approvals from the Central Land Council. Drilling and earthworks are planned for the September quarter, contingent on these regulatory clearances. The Pioneer and McArthur River projects in Queensland and Northern Territory respectively remain in planning stages, with no field activity reported this quarter.

Financial Position and Funding Outlook

Financially, Genesis reported a net cash outflow from operating activities of AUD 295,000 for the quarter, with cash and cash equivalents standing at AUD 222,000. The company has access to an additional AUD 620,000 in undrawn financing facilities, primarily from related party loans, providing an estimated 2.85 quarters of funding at current expenditure levels.

Loan facilities totaling AUD 1.38 million were drawn down during the quarter, reflecting ongoing support from related parties. While this funding structure supports near-term exploration activities, the company’s ability to secure further capital will be pivotal as it advances its projects toward development.

Looking Ahead

Genesis Resources is at a critical juncture, with full ownership of Plavica positioning it to push forward on environmental approvals and eventual mining operations. Meanwhile, the planned drilling campaigns in Australia could unlock further value if the promising 2023 results are confirmed or extended. Investors will be watching closely for updates on regulatory approvals, drilling outcomes, and capital raising efforts as the company seeks to transition from exploration to development.