Matsa Resources Limited
Matsa Resources Limited
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Dilution issues and delays due to personnel shortages have seen West Australian miner Matsa Resources post total mine production of 28,278t @ 2.79g/t for 2,536oz gold equivalent at its 100%-owned Red October mine near Laverton in the Sept qtr (Q1FY21).
Production came from a combination of jumbo development and long-hole stoping from the North Decline area and ore drive development from the South Decline area. The result compares with 3,162oz (23,320t @4.22g/t) in the previous period.
Matsa Resources has produced a record 3,162oz gold equiv in the June 2020 qtr (Q4 20) at its 100%-owned Red October mine, S of Laverton in Western Australia -- 23,320t @ 4.22g/t Au, up 82.35% on the previous qtr’s 16,036t @ 3.36g/t for 1,734oz.
The result takes FY 20 production to 7,431oz at AISC $A2,051oz. Matsa’s 1st full qtr of mining at Red October was the Sept 2019 qtr (Q1 FY20).
The company completed Q4 20 with cash/liquid investments of $6.3M.
Nickel-gold-copper miner IGO has done a $A7M deal to earn 70% of fellow Australian miner Matsa Resources’ Symons Hill Nickel Project in Western Australia’s Fraser Range over the next 3-years.
Under the agreement, Matsa could receive staged cash payments of up to $3.5M and IGO can elect to spend a minimum of $3.5M, leaving Matsa free carried until IGO either completes an FS or reaches a decision to develop and mine.
West Australian miner Matsa Resources is predicting more growth in the next 3 months after building March qtr (Q3FY20) gold production at its 100%-owned Red October mine to 1,693oz, up from just 560oz in the previous period. AISC improved to $A2,372/oz ($3,122/oz).
Exec chairman Paul Poli says Matsa is continuing to invest in additional mine equipment and recruitment of key personnel following the mid-2019 resumption of operations at the historic mine near Laverton.
West Australian company Matsa Resources has completed the first full quarter of mining at its 100%-owned Red October gold project, delivering 10,903t @ 5.39g/t to the Sunrise Dam treatment plant in the Sept qtr (Q1FY20) under its ore purchase and processing agreement with AngloGold Ashanti.
Ore production is expected to increase significantly with the commencement of stoping in the coming quarter.
A new mining study has potentially added to Matsa Resources’ gold production, flagging 54,400oz over an initial 22-months from proposed stage-2 mining operations at the Fortitude deposit within the 100%-owned Lake Carey Gold Project in Western Australia’s Eastern Goldfields.
The study envisages a potential cash surplus of $A21.8M over 22-months on a modest capital investment of $6.6M, with production at 93% recovery from 1.029Mt @ 1.8g/t and operating cash costs of $1,628oz.
Matsa Resources has done another deal with gold miner AngloGold Ashanti Australia (AGAA) for ore purchase/processing from Matsa’s 100%-owned Red October mine, S of Laverton in Western Australia, to be treated at AGAA’s nearby Sunrise Dam gold mine for up to 5 years.
The terms of the agreement remain confidential, but Matsa says they are based on the previous successful relationship and detailed MOU between the 2. 1st ore delivery is scheduled by the end of June 2019.
West Australian miner Matsa expects to deliver first ore in April after giving the go-ahead for decline preparation and other site activities at its 100%-owned Red October gold mine south of Laverton.
Matsa has yet to finalise toll treatment/ore sale discussions, but expects that will be done before ore production starts.
Red October is expected to produce 10,222oz gold from the mining of 56,673t @ 5.61g/t in its initial 7-month operation, with forecast AISC of $A1,300/oz pointing to a cash surplus of $3.075M.
Chalk up another success to Matsa Resources’ small-scale mining strategy at its Lake Carey project area in Western Australia.
Matsa has overcome weather delays to complete a 4-month mining campaign at its 100%-owned Red Dog deposit, delivering 12,704oz gold at AISC of $A1,288/oz and generating a cash surplus of $5.5M.
Red Dog follows similar success with Stage 1 of the Fortitude project in mid-2018, and Matsa is now assessing two other small deposits at Lake Carey for possible development this year.
West Australian company Matsa Resources has commenced mining at its 100%-owned Red Dog gold mine, a 26,300oz (368,000t @ 2.2g/t) 25km west of its Fortitude gold project near Laverton.
The development of the mine benefits from the ability to utilise the existing mine infrastructure at Fortitude and the camp and accommodation facilities at the Red October mine, 20km to the north.
Under an ore purchase agreement with AngloGold Ashanti Australia, all Red Dog ore will be treated at its Sunrise Dam gold mine.