Matsa Resources Advances Devon Pit Gold Mine with High-Grade Assays

13 February 2024 12:22

Matsa Resources (ASX:MAT) continues to advance its Devon Pit Gold Mine towards production, announcing the receipt of new high-grade gold assays from its Lake Carey Gold Project, with 98 samples grading over 1g/t, 29 samples over 10g/t, 12 samples over 25g/t, and 5 samples exceeding 50g/t.

High-Grade Gold Assays

The Company is extremely encouraged by the results from the last six holes, all situated within the West lode, which have revealed outstanding high-grade gold assays.

Results from the Main Lode of the Devon Pit Gold Mine include:

  • 3.0 metres @ 7.00g/t Au from 24 metres (DVN002)
  • 2.0 metres @ 7.24g/t Au from 12 metres (DVN005)
  • 2.0 metres @ 8.55g/t Au from 48 metres (DVS003)

Results from the West Lode of the Devon Pit Gold Mine include:

  • 2.0 metres @ 16.18g/t Au from 18 metres (DVWL001)
  • 4.0 metres @ 13.44g/t Au from 55 metres (DVWL003)
  • 1.0 metre @ 50.30g/t Au from 47 metres (DVWL005)
  • 5.0 metres @ 10.91g/t Au from 47 metres (DVWL010)
  • 7.0 metres @ 8.12g/t Au from 32 metres (DVWL026)
  • 3.0 metres @ 38.00g/t Au from 53 metres (DVWL027)

Matsa has received results from 47 out of 53 reverse circulation drill holes completed in September last year at the Devon Pit Gold Mine, located within the Lake Carey Gold Project, south of Laverton.


Figure 1: Plan of Devon Pit Gold Mine drilling and assay status

The encouraging drill results, particularly from the West Lode, present a potential avenue for generating early cash flow in a mining context.

The Devon Pit Gold Mine represents a high-grade open pit development project, boasting a Mineral Resource of 467kt at an average grade of 4.6g/t, equivalent to 69koz of gold.

Impressively, 82% of this Mineral Resource falls within the JORC (2012) Indicated category, indicating a high level of confidence in the resource estimation.

The Lake Carey Gold Project

The Lake Carey Gold Project boasts a significant global gold resource approaching nearly 1 million ounces, with the potential for expansion through upcoming drilling activities.

The Company has successfully secured regulatory approvals for crucial environmental permits, ensuring uninterrupted mining operations throughout the first half of this year.

The Next Steps

After obtaining all drilling and assay results, Matsa will be better equipped to assess whether further drilling is necessary to evaluate potential extensions to the resource in terms of both strike and depth.

This evaluation will be conducted within the framework of existing optimisation efforts, mine planning considerations, and regulatory approvals.

Concurrently, the Company is actively progressing with mine designs, planning, and scheduling as part of its ongoing efforts towards establishing a viable mining operation.

Remaining milestones to achieve before that is plausible include:

  • Updating the Mineral Resource Estimate with new drilling
  • Review requirement for updated pit optimisation and mining studies
  • Complete remaining studies and approvals required for the feasibility study
  • Calculate and reporting of reserves
  • Final approvals submissions to regulatory authorities to obtain mining permits
  • Negotiate and finalise mining and milling agreements to extract and process ore from Devon Pit Gold Mine
  • Confirm funding for the mining operations

Company Comments

Matsa Resources’ Executive Chairman, Paul Poli, expressed optimism regarding the favorable outcomes.

“These results continue to support our view that the Devon Pit Gold Mine is a valuable asset that Matsa plans to put into production once permitting is in place and financing and processing arrangements have been made,” he said.

“Our studies to date have demonstrated a potential mine that produces in excess of 250,000 tonnes at over 4g/t which is exciting. I can say we are working closely with a number of independent operators to explore mining and scheduling options with the aim of commencing mining as soon as possible once all the necessary permitting is in place.”

“The results of the West lode continue to impress and we can see a potential mining scenario that could deliver earlier cashflow than previously modelled, simply by starting in a different area of the mine and rescheduling the mine’s development.”

“We look forward to continue providing updates on the Devon Pit Gold Mine, as well as Lake Carey in general, as new information continues to build the picture.”

MAT’s Australian Securities Exchange-listed share price has is currently trading at $0.029 (12.00pm UTC+ 8 hours).


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