Tower Hill Secures 1Moz Ore Reserve Approval, Production Set for FY28
Genesis Minerals has secured regulatory approval for Stage One mining at Tower Hill, aligning the project with its mill expansion plans and setting the stage for production in FY28.
- Stage One mining proposal and closure plan approved by regulators
- 1Moz Ore Reserve with strong drill intercepts supports development
- Mining start scheduled to coincide with Leonora mill expansion
- Rail line agreements for Stage Two expected by year-end
- Organic growth pipeline strengthened by Laverton asset acquisition
Regulatory Milestone at Tower Hill
Genesis Minerals has achieved a significant development milestone with the Department of Mines, Petroleum and Exploration granting approval for the Stage One Mining Proposal and Mine Closure Plan at its Tower Hill project. This regulatory green light is a crucial step in the company’s ASPIRE 400 growth strategy, confirming that the project remains on track for mine development in the 2027 financial year and first ore extraction in 2028.
Strategic Alignment with Mill Expansion
The timing of mining operations at Tower Hill is being carefully coordinated with an ongoing expansion study of the nearby Leonora processing plant, located just one kilometre away. This synchronization aims to optimise capital expenditure and operational efficiencies, ensuring that the ramp-up in ore supply dovetails with increased processing capacity. Managing Director Raleigh Finlayson highlighted the flexibility this approval provides, allowing Genesis to align mining activities with broader infrastructure upgrades.
Robust Ore Reserve and Exploration Potential
Tower Hill boasts a substantial Ore Reserve of approximately 1 million ounces at an average grade of 2 grams per tonne, contained within a 1.4-kilometre strike length open pit. The project’s operating strip ratio of 9 – 1 reflects the waste-to-ore balance that will shape mining economics. Notably, drill results have revealed numerous high-grade intercepts exceeding 200 grams per tonne, with significant widths and grades that underscore the deposit’s quality. Exploration to date has only tested depths to around 450 metres, leaving room for further resource expansion, particularly as underground transition studies advance.
Infrastructure and Future Development
While Stage One mining does not impact the adjacent rail line, Genesis is actively negotiating agreements with rail users to facilitate shortening of the rail line required for Stage Two development. These agreements are anticipated to be finalised by the end of the calendar year, clearing the way for subsequent project phases. Additionally, the recent acquisition of the Focus assets at Laverton complements Tower Hill by broadening the company’s organic growth pipeline and enhancing processing flexibility.
Looking Ahead
Genesis plans to provide further details on Tower Hill within its updated long-term plan, expected in the first half of 2026. This forthcoming update will likely shed light on how the project integrates with the company’s broader growth ambitions and capital allocation priorities. For investors and market watchers, the Stage One approval marks a pivotal moment that transitions Tower Hill from development to production readiness.
Bottom Line?
With Stage One approval secured, Genesis Minerals is poised to unlock Tower Hill’s potential, but key infrastructure agreements and mill expansion remain critical next steps.
Questions in the middle?
- How will the timing of the Leonora mill expansion influence Tower Hill’s production ramp-up?
- What are the terms and potential impacts of the rail line shortening agreements for Stage Two?
- To what extent could further underground exploration at Tower Hill expand the Ore Reserve?