Genesis Resources (ASX:GES) has recently made progress on a number of fronts at its Plavica gold project in Macedonia.
Genesis has a joint venture agreement with its Macedonia-based partner RIK Sileks AD Kratovo for seven exploration tenements in Macedonia.
It can acquire a 62% of the interests held by Sileks, subject to the completion of drilling and exploration programs and the submission of a feasibility study.
Genesis and Sileks have now jointly incorporated a company in Macedonia, Silgen Resources International, which is 62% owned by Genesis and 38% owned by Sileks’ nominee.
Following incorporation of the JV company, Sileks transferred the ownership of all assets held in respect of the key Plavica tenement into the JV company.
Genesis previously engaged consultants in Macedonia to complete a final feasibility study in accordance with the requirements of the Macedonian Government.
This study has now been completed by Genesis and submitted to Sileks and the Macedonian Ministry of Economy.
The JV Company has now submitted an application for a 30 year mining licence for the Plavica tenement in question.
After the Licence is granted, Genesis remains responsible under the terms of the JV Agreement for undertaking infill and extensional drilling and completing a feasibility study,
The infill drilling will aim to deliver a resource in the indicated category, and the extensional drilling will aim to increase the total resource of Plavica, which is still open along strike, as well as test the Maricanski prospect and a number of other targets.
Genesis expects to complete the proposed infill and extensional drilling and the feasibility study within 2.5 years of the JV Company being granted the licence, and has agreed to commit up to US$7.5 million.
The remaining six tenements are green field projects, and the exploration licences have recently expired.
Genesis is currently reviewing recent mapping to determine the best areas over which to submit new applications for exploration concession licences.
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