MATSA RESOURCES LIMITED Matsa Resources Limited
ASX Announcement | 27th October 2021 |
Quarterly Activities Report 30th September 2021
Highlights
-
Fortitude Mineral Resource Estimate has grown by 43% to
489,000oz @ 1.9 g/t Au - The Lake Carey Mineral Resource Estimate now stands at
867,000oz @ 2.4g/t Au - A new mine optimisation at Fortitude Gold Mine delivered a significant increase in the estimated gold mined to ~132,000oz Au @ 1.6g/t (up from 58koz)
- A$95M cash surplus forecast from Fortitude and A$41M from Devon pit projected, based on a proposed Matsa mill
- Final 1 metre assays confirm positive early results from reverse circulation (RC) drilling program completed at Devon Hub during the June quarter. Significant intercepts include:
HE1 | 8m | @2.66 g/t Au from 63m |
3m | @ 14.2 g/t Au from 123m | |
3m | @ 6.64 g/t Au from 84m | |
LIN5 | 1m | @ 29.2 g/t Au from 17m |
Devon Pit 4m @ 3.23 g/t Au from 99m 3m @ 2.52 g/t Au from 99m
- New Years Gift soil sampling defines new 600m x 300m gold anomaly approximately 1km north of Devon Pit
- Ground magnetic survey at Fortitude North highlights key structures for drill targeting
- During the quarter the Company raised A$3.38M (before costs) via a placement with funds to be utilised for further exploration expenditure on the Company's projects
CORPORATE SUMMARY
Executive Chairman
Paul Poli
Directors
Frank Sibbel
Pascal Blampain
Director & Company Secretary
Andrew Chapman
Shares on Issue
-
million
Listed Options
- million @ $0.17
Unlisted Options
- million @ $0.17 - $0.35
Top 20 shareholders Hold 53.29%
Share Price on 27th Oct 2021
- cents
Market Capitalisation A$21.49 million
Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487
Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | reception@matsa.com.au
Matsa Resources Limited
INTRODUCTION
Matsa Resources Limited ("Matsa" or "the Company" ASX: MAT) is pleased to report on its exploration and corporate activities for the quarter ended 30th September 2021.
COMPANY ACTIVITIES DURING THE QUARTER
Activities during the quarter have been principally focused on the Company's Lake Carey Gold project (Figure 1) and comprised the following:
- Upgraded Mineral Resource Estimate completed at Fortitude
- Mining optimisation study completed at Fortitude
- Upgraded Mineral Resource Estimate completed at Lionfish (Red October Hub)
- Fortitude North Exploration Target progress update
- Feasibility Study at Devon Pit commenced
- Devon Hub soil sampling results defined new gold target at New Years Gift
- Assay results for 1 metre split samples have been returned for RC drill holes completed in the Devon Hub during the previous quarter
- Ground magnetic survey completed at Fortitude North with interpretation of data underway
- Red October underground wind down complete
TOTAL MINERAL RESOURCES
Resource upgrades during the quarter at Fortitude and Lionfish has substantially increased the global Mineral Resource Estimate for Lake Carey to 867,000oz @ 2.4g/t Au (adjusted for depletion for 2020- 2021 mining). This represents a 25% increase on the total of 694,000 oz reported June 2021.
Cutoff | Measured | Indicated | Inferred | Total Resource | ||||||
g/t Au | ('000t) | g/t Au | ('000t) | g/t Au | ('000t) | g/t Au | ('000t) | g/t Au | ('000 oz) | |
Red October | ||||||||||
Red October UG | 2.0 | 105 | 8 | 483 | 5.7 | 411 | 6.3 | 999 | 6.2 | 199 |
Red October Subtotal | 105 | 8.4 | 483 | 5.7 | 411 | 6.3 | 999 | 6.2 | 199 | |
Devon | ||||||||||
Devon Pit (OP) | 1.0 | - | - | 341 | 4.8 | 102 | 3.6 | 443 | 4.6 | 65 |
Olympic (OP) | 1.0 | - | - | - | - | 171 | 2.8 | 171 | 2.8 | 15 |
Hill East (OP) | 1.0 | - | - | - | - | 633 | 1.7 | 633 | 1.7 | 35 |
Devon Subtotal | - | - | 341 | 4.8 | 906 | 2.1 | 1247 | 2.9 | 115 | |
Fortitude | ||||||||||
Fortitude | 1.0 | 127 | 2.2 | 2,979 | 1.9 | 4,943 | 1.9 | 8,048 | 1.9 | 489 |
Gallant (OP) | 1.0 | - | - | - | - | 341 | 2.1 | 341 | 2.1 | 23 |
Bindah (OP) | 1.0 | - | - | 43 | 3.3 | 483 | 2.3 | 526 | 2.4 | 40 |
Fortitude Subtotal | 127 | 2.2 | 3021 | 2.0 | 5,767 | 1.9 | 8,915 | 1.9 | 553 | |
Total | 232 | 5.0 | 3,845 | 2.7 | 7,084 | 2.2 | 11,161 | 2.4 | 867 |
Refer to ASX announcement dated 2nd September 2021 for more details of the Mineral Resource Estimate.
Matsa confirms that it is not aware of any new information or data that materially affects the information included in the ASX announcement dated 2nd September 2021 entitled "Gold Resource Nears 1 Million Ounce Milestone Lake Carey Gold Project". All material assumptions and technical parameters underpinning the Mineral Resource estimate continue to apply and have not materially changed. Red October numbers have been depleted for 2020-2021mining
Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487
Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | reception@matsa.com.au
Matsa Resources Limited
Figure 1: Lake Carey Gold Project
LAKE CAREY PROJECT ACTIVITIES
In January 2021, Matsa announced the results of a concept study into a proposed new 600,000tpa processing plant to service Lake Carey1. The Study demonstrated a Matsa owned and operated treatment plant would significantly and positively impact the financial results of Matsa's mining opportunities.
1 ASX Announcement 22 January 2021 - Concept Study 600,000tpa Treatment Plant Lake Carey Project
Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487
Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | reception@matsa.com.au
Matsa Resources Limited
During the quarter a preferred site was selected and relevant work activities are progressing for a new gold processing plant to be constructed at the Fortitude gold mine. The proposed mill location at the Fortitude mine is well positioned to service Matsa's other projects that are by and large within 20km of the proposed site location (Figure 2).
Figure 2: Proposed site for Matsa processing plant showing key projects within 10km and 20km
radius
Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487
Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | reception@matsa.com.au
Matsa Resources Limited
Devon Hub
The Devon Hub was the most actively explored area during the September quarter. Activities include:
- Feasibility study commenced at Devon Pit, with fauna and flora studies completed
- Final assays for 1m samples were received for the 42 hole RC program completed during the previous quarter
- Assays were received from soil sampling north of Devon Pit defining a new 600m x 300m gold target, which extends to the SW from historic high grade gold workings at New Years Gift towards Devon Pit
- 245 soil samples were collected to the west of Olympic, results are awaited
- Systematic XRF readings have commenced on 2,500 sample residues for multi element data, such as arsenic, following laboratory assays for gold-only assays
Devon Study
The April scoping study2 showed that a mining operation at the Devon Pit will produce attractive project economics with a potential cash surplus of A$40.75M through production of 265kt @ 4.64 g/t Au over an estimated mining period of 12 months. A sensitivity review indicates that the project is robust with potential for improvement to the financial model as new optimisations come to hand and exploration progresses to potentially add additional ounces to the resource.
Flora and Fauna studies have been completed and initial discussions with regulatory authorities have been held regarding potential recommencement of mining at Devon Pit.
RC Drilling Program - Final 1m Assays Received
Final assay results were received for 1m split samples from the 42 hole RC drilling program completed during the June quarter3. Key mineralised intercepts >0.5 g/t Au are highlighted in Figure 3 and Table
1. All assays >0.1 g/t Au are listed in Appendix 1. Final 1m Assays - Discussion
HE1 and HE2: 8 RC drill holes were designed to test HE1 and HE2 which form part of the Devon Hill East Resource. The drilling targeted depth extensions at HE1 as well as an interpreted ESE trending structural link between HE1 and HE2. This interpretation targets a strong magnetometric resistivity (MMR) response from Matsa's 2020 SAM survey.
The 1m assays from the 8 RC drill holes include excellent results such as 8m @ 2.66 g/t Au from 63m (21HERC045), 3m @ 14.2 g/t Au from 123m (21HERC042) and 3m @ 6.64 g/t Au from 84m (21HERC046). These results closely confirm first pass composite assays and the two deeper intercepts can be seen to highlight potential for discovery of additional mineralisation through further drilling at depth and along strike (Figure 4).
HE5: 9 RC drill holes were completed to test potential structural extensions to gold mineralisation in the HE5 resource associated with a south east trending MMR response (Figure 3). The 1m assay data returned significantly mineralised intercepts in 4 drill holes, including high grade intercepts at shallow
- ASX Announcement 14 April 2021 - Devon Pit Scoping Study Delivers Excellent Results
- ASX Announcement 13th July 2021 - New High Grade Gold Results Boosts Devon Hub Lake Carey Gold Project
Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487
Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | reception@matsa.com.au
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Matsa Resources Limited published this content on 27 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2021 08:57:06 UTC.
