Genesis signs rail agreements to advance Tower Hill project

Genesis Minerals Limited has signed agreements with the Public Transport Authority, Arc Infrastructure, and Aurizon to shorten the Leonora rail line. This strategic move will facilitate the expansion of the Leonora mill and allow full development of the Tower Hill open pit, which holds a 1Moz Reserve at 2g/t and an operating strip ratio of 9:1. The deposit, currently drilled to ~450m, is located near Gwalia and is undergoing an underground transition study.

The rail agreements are key milestones, following the execution of a Mining Agreement with the Watarra Aboriginal Corporation RNTBC, receipt of the Stage 1 Mining Proposal and Mine Closure Plan, and the Stage 1 Native Vegetation Clearing Permit. Tower Hill is on track for mine development in FY27, with first ore expected in FY28.

The project involves relocating the existing Leonora rail terminal, reducing heavy vehicle movements through the town and eliminating level crossings. The new terminal will include a multi-user spur line funded by Arc Infrastructure and a private siding funded by Genesis. Total cash and non-cash consideration payable by Genesis for the rail shortening is estimated at approximately A$80m, with FY26 payments projected to be A$27m, funded by operating cash flows and existing reserves.