THE BOURSE WHISPERER: Matsa Resources (ASX: MAT) has commenced underground mining operations at the company’s 100 per cent-owned Red October gold project in Western Australia’s Eastern Goldfields.
Matsa Resources said that mining activities, including decline preparation and other site preparation are underway with first ore scheduled to be produced and ready for delivery in April.
The company explained that the commencement of mining operations at Red October is the culmination of two mine studies, which have delivered a comprehensive mine plan, that proposes a highly profitable, low cost targeted mining operation over an initial seven month period – with strong potential to extend mining in-line with the company’s goal of delivering a substantial long term mining operation at Red October.
Matsa anticipates the mining operation to generate revenue of $16.09 million and deliver a net cash surplus $4.075 million.
All necessary approvals for mining at Red October are in place, and toll milling/ore purchase agreements are currently being negotiated.
“I am delighted with the work done in getting the Red October gold mine to the point where we can announce mining and production in early 2019, subject to a suitable toll milling/ore purchase agreement being finalised,” Matsa Resources executive chairman Paul Poli said in the company’s announcement to the Australian Securities Exchange.
“Although planning indicates initial production over a seven-month period, I am very confident ongoing exploration and increased knowledge will see production go beyond that timeframe.”