THE BOURSE WHISPERER: Matsa Resources (ASX: MAT) announced the first delivery of ore from the company’s Red October gold mine in Western Australia to the Sunrise Dam gold treatment plant owned by AngloGold Ashanti Australia (AGAA).
Matsa Resources executed a five years Ore Purchase Agreement with AGAA for the purchase of gold ore from the Red October gold mine that is to be treated at the Sunrise Dam gold mine.
AnlgoGold Ashanti’s Sunrise Dam treatment plant is a 3.8 million tonne per annum mill and is located approximately 10 kilometres north of the Red October gold mine and provides Matsa with access to a substantial and modern nearby milling facility.
The haulage route is a predominately Matsa owned and maintained road around Lake Carey of 60kms between Red October and Sunrise Dam.
Matsa has previously delivered ore from its Fortitude and Red Dog gold mines to Sunrise Dam.
“The delivery of first ore from the Red October gold mine is another significant milestone for both Matsa and its shareholders,” Matsa Resources executive chairman Paul Poli said in the company’s announcement to the Australian Securities Exchange.
“It is expected that this will be the start of regular, continuous ore deliveries to Sunrise Dam for the foreseeable future generating a regular income stream in the process.
“Under the previously announced ore purchase agreement, AngloGold are keen to accept potentially all ore from Red October for up to five years allowing us to focus on developing a long-term production profile.
“We remain committed and are confident that we can build a long-term profitable mine at Red October.”