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Matsa Resources Reports New Drilling Results from Lake Carey Gold Project

THE DRILL SERGEANT: Matsa Resources (ASX: MAT) provided a market update on recent exploration drilling undertaken at the company’s Lake Carey gold project in the Eastern Goldfields of Western Australia.

Matsa Resources recently completed two diamond drill holes, one at the Fortitude North target and the other at the FF1 target.

The company explained a further eight diamond holes were also completed at the Devon target, however the results of this drilling were not available yet.

Assays received included:

2FFD001
9.4 metres at 3.27 grams per tonne gold from 120.8m at Fortitude North; and

22FNDD009
1m at 6.57g/t gold from 148m at FF1.

“Over the last few months, we have been busy at our Lake Carey gold project completing a number of ground magnetic and soil geochem surveys in support of exploration drilling which also commenced during the quarter,” Matsa Resources executive chairman Paul Poli said in the company’s ASX announcement.

“The aircore drilling completed to date has already identified new gold in basement anomalism at Phantom Well and Wilga West that adds to our exploration pipeline.

“With a focus on developing the area near the Fortitude gold mine, I’m particularly pleased to say we have recommenced drilling at Fortitude North.

“As a result of the reinterpretation of the Fortitude North mineralising and grade shoot geometry model, we have planned a staged diamond drilling program starting with a hole completed down dip of the northern most high-grade intercept to target an interpreted high-grade shoot.

“We are thrilled that the drilling has confirmed the existence of a higher-grade shoot, so follow-on drilling will be undertaken.

“Notably, the results of this drilling returned a thicker, higher-grade intercept in comparison to previous drilling in that part of Fortitude North.

“What I really like about this intercept is that it has returned 36 per cent more gold than the previous drill hole.

“What also bodes well for this prospect is that these results demonstrate that grades appear to increase as the exploration gets deeper.

“As we develop and improve our geological understanding of the Fortitude North prospect, these types of results give me high confidence we can deliver another Fortitude Gold Mine type resource of between 400,000 and 600,000 ounces in the not too distant future.

“Lastly, at FF1 only one kilometre to the north of Fortitude North, we’ve completed the very first diamond drill hole where in 2020, we defined a large gold in basement anomaly and overlying channel sands.

“It is promising to see an alteration zone of 19 metres in the core, which indicates strong fluid movement and suggests a fertile package of rocks.

“I’m looking forward to developing FF1’s story with more drilling and also drilling the untested large bullseye magnetic anomaly only a couple of hundred meters to the north.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: reception@matsa.com.au

 

Web: www.matsa.com.au

 

Matsa Resources Welcomes IGO Interest in Fraser Range Tenements

THE BOURSE WHISPERER: Matsa Resources (ASX: MAT) has struck a new agreement with IGO, via the latter’s wholly owned subsidiary.

Matsa Resources announced IGO Newsearch will acquire a 70 per cent interest in the Symons Hill project as well as Matsa’s other Fraser Range tenements.

Under the terms of the agreement IGO will pay $600,000 in cash and then free carry Matsa for all exploration to completion of feasibility studies or decision to mine whichever occurs earlier.

“This transaction enables IGO to have unfettered access to any part of Matsa’s Fraser Range landholding and explore the tenements to the fullest extent without specific time or cost demands,” Matsa Resources executive chairman Paul Poli said in the company’s ASX announcement.

“It provides Matsa with a cash boost as well as receiving the expert knowledge and exploration experience of the IGO team which is second to none.

“Matsa welcomes IGO’s exploration knowhow and capabilities throughout its Fraser Range tenement holdings.”

 

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: reception@matsa.com.au

 

Web: www.matsa.com.au

 

 

Matsa Resources Grows Thailand Presence via New Lithium Applications

THE BOURSE WHISPERER: Matsa Resources (ASX: MAT) will have lots to talk about at next week’s 2022 RIU Explorers Conference after announcing that the company has recommenced active exploration in Thailand.

Matsa Resources has applied for 65 new Special Prospecting Licence Applications (SPLAs) in Thailand for 942 square kilometres in key granite/pegmatite belts.

The SPLAs cover ground known by the country’s Department of Minerals and Resources to host lithium occurrences.

Matsa is well prepared having a fully functional office, staff and skills in the country and is well positioned to actively grow its portfolio.

“Thailand has always been a place of special interest to Matsa and we always understood its excellent geological prospectivity, but had to be patient whilst the country matured their mining legislation and consent processes,” Matsa Resources chairman Paul Poli said in the company’s ASX announcement.

“We have observed substantial progress in this area over the last six months and authorities have now been positively engaging with miners.

“This is clearly evident through Kingsgate recommencing mining at their Chatree gold mine and even further afield, the success of Pan Asia with their lithium discoveries.

“Matsa sees enormous opportunities in exploration for lithium, gold and base metals, not only because of the highly prospective geology, but also the economic ramifications of Thailand’s close location to China.

“The two countries are now directly linked by rail which could have positive economic benefits to any mine development within the region.

“I see Thailand as an emerging mining frontier where tier one discoveries are bound to be made and with the change of attitude to mining it will be a great exploration destination.

“Our Thailand office, led by our Thailand managing director Mr Ratha Kheowhamseang, is taking advantage of this changing environment and using Matsa’s extensive Thailand experience and knowledge to build a high value exploration portfolio that will complement Matsa’s highly regarded Lake Carey gold project.

“Matsa intends to use some of the funds from the recently announced $20 million sale of Red October and Devon to advance the projects.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: reception@matsa.com.au

 

Web: www.matsa.com.au

 

Matsa Resources Updates Fortitude Optimisation Study

THE DRILL SERGEANT: Matsa Resources (ASX: MAT) reported results from a recently updated scoping study for the Fortitude Pit, at the company’s Lake Carey gold project in the Eastern Goldfields of Western Australia.

Matsa Resources said the study had determined the Fortitude Pit would produce a potential cash surplus of $95 million over an estimated mining period of four years based on Matsa’s proposed 600,000 tonnes per annum processing plant.

A sensitivity review was also carried out that indicated the project to be robust with potential for improvement from lower mining and processing costs by utilising a larger mining fleet and a bigger processing plant.

The revised optimisation has been driven by the recently announced revised Minerals Resources Estimate for Fortitude, which stands at 8,048,000 tonnes at 1.9 grams per tonne gold for 489,000 ounces and represents a 43 per cent increase in resource ounces from this time last year.

“This is a fantastic result, Lake Carey just keeps getting better and whilst more work will improve the economics of the Fortitude mine, on face value it alone now justifies the mill strategy,” Matsa Resources executive chairman Paul Poli said in the company’s ASX announcement.

“The Devon and Fortitude open pits alone could now provide collective positive cash flows of $140 to $150 million and with ongoing exploration in this great project, I’m very confident we can continue to build on this result.

“This study was completed using a gold price of $2,400 per ounce for the optimisation and the results have effectively doubled the mine life and gold production.

“What’s also really pleasing is that 95 per cent of the ounces in this bigger pit are in the Measured and Indicated categories.

“I’m also very confident we can improve on this projection with the lower cost structures you would expect from a larger mill than the 600,000 tonnes per annum currently envisaged and I expect the larger pit should also provide an improved scheduling and cost structure scenario.

“The exploration potential at Lake Carey is significant.

“Importantly, we’ve already commenced underground studies at Fortitude, if we can add an underground component to the Fortitude open pit this could be very interesting indeed.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: reception@matsa.com.au

Web: www.matsa.com.au

 

Matsa Resources Increases Lake Carey Gold Resource

THE DRILL SERGEANT: Matsa Resources (ASX: MAT) announced a Mineral Resource increase for the company’s Lake Carey gold project in Western Australia.

Matsa Resources has taken the Lake Carey Resource to 654,000 ounces of gold, representing a 27 per cent increase to the Measured, Indicated and Inferred Mineral Resources the company released in December 2020 and a 48 per cent increase against the reported Mineral Resources in its 2020 Annual Report.

The company recently reported new Mineral Resources at the Devon Pit and Olympic prospects.

The latest announcement now includes maiden Mineral Resources for the Hill East and Gallant prospects.

The company considers these new models deliver additional Mineral Resources to both the Devon and Fortitude mine hubs.

“Following the fantastic results of our Devon pit Scoping Study…I’m very pleased with these latest results demonstrating significant Mineral Resource growth since last year,” Matsa Resources executive chairman Paul Polisaid in the company’s ASX announcement.

“What’s really exciting is that not only has the global Mineral Resource increased in quantum, it has also seen a modest increase in grade.

“During the next quarter, we will have more drilling and assay results coming in and I expect we’ll also make significant headway into a Red October Mineral Resource update on the back of last year’s excellent Lion Fish, Marlin and Dory drilling results.

“At Devon, the detailed soil sampling program and results continue to enhance the area’s prospectivity highlighting numerous anomalous gold trends that have had little modern exploration activity.

“We’re very keen to drill these wonderful targets, which we anticipate will commence in May.

“Lake Carey and the Matsa team continue to deliver.

“I’m very enthused with our recent results and confident upcoming results will continue to deliver on our strategy to build and operate our own mill at the Lake Carey gold project.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: reception@matsa.com.au

 

Web: www.matsa.com.au

 

Matsa Resources Confirms Devon Resource at Lake Carey

THE DRILL SERGEANT: Matsa Resources (ASX: MAT) released a Mineral Resource Estimate for the company’s Lake Carey gold project in Western Australia.

Matsa Resources has confirmed the Initial Devon Mineral Resource Estimate of 80,000 ounces at 4.1 grams per tonne gold, comprising the Devon pit and Olympic prospects.

Although the resource includes only the Devon Pit and the Olympic prospects, the company declared potential exists for expansion as further exploration is conducted across at the Devon project area.

In addition to known structural offsets, the soil sampling conducted by Matsa over the past 6 months has highlighted a number of gold in soil anomalies that are yet to be drill tested.

“The shallow high-grade nature of mineralisation at Devon pit, in particular, lends itself to a potential cutback mining scenario with minimal pre strip requirements, early access to ore and mining studies have commenced,” Matsa Resources said in its ASX announcement.

“The grade and mineralisation are expected to be amenable to both open pit and underground mining methods and may provide a logical add-on to the established mining plan at Fortitude Stage 2.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: reception@matsa.com.au

 

Web: www.matsa.com.au

 

Matsa Resources Declares New Business Strategy

THE BOURSE WHISPERER: Matsa Resources (ASX: MAT) woke up this morning with a brand-new lease on life and vision for the company’s Lake Carey gold project in Western Australia.

Matsa Resources has decided to grab the bull by the proverbials and delivered an outline for a new business strategy and strategic pathway centred on resource growth through a targeted exploration drive to support a proposed 100 per cent Matsa owned, 600,000 tonnes per annum treatment plant.

The Matsa Board believes that the strategy of becoming a mid-tier gold producer through exploration and construction of its own gold-ore treatment plant will create greater shareholder value and appeal.

As a result, the Board has announced its commitment to making the necessary changes to achieve this strategy.

“Since 2018, Matsa has demonstrated it has the capacity to successfully operate both open cut and underground mines,” Matsa Resources executive chairman Paul Poli said in the company’s ASX announcement.

“With that in mind, our recently completed CPC study into a 600,000 tonnes per annum facility presents a compelling case for Matsa to preserve resource tonnes for a Matsa owned treatment plant and commence an aggressive exploration program in order to substantially increase the company’s resources.

“We already have 515,000 ounces of gold resources and we fully intend to grow these through our planned exploration activities.

“We will be working through our plans at Red October in light of our recent highly successful drilling programs, and a Matsa owned treatment plant will enable us to work towards getting Fortitude and Devon into production with far more attractive project economics than were previously achievable.

“Our recent drilling at Red October, Devon, Olympic and Fortitude North, tells me that we have a great opportunity to significantly expand the company’s resources and reserves through a concentrated exploration effort.

“I am regularly reminded that our tenements in the Lake Carey area represents as some of the most attractive exploration space in the goldfields.

“We already have multiple walk up targets that are ready for drilling.

“At Red October, our geologists recently identified two new structural targets parallel to the ROSZ and Marlin lodes, each of which have the capacity to substantially alter the outlook for the mine.

“As a result of our confidence in exploration success at Red October we will need to wind down the ore production and change our focus to drilling and identifying those impressive targets and grow the reserves into a long term mine plan.

“Over the coming months our team expects to provide new targets from the seismic and SAM geophysics datasets and we will also add those to our drilling programs.

“At Devon, Olympic, Hill East and Fortitude North we are busy updating models and we’ve got some very strong gold anomalism in excess of seven kilometres along the Fortitude Fault and five kilometres long on the Bindah structural trends.

“This area remains largely unexplored and simply needs drilling and that’s what we’ll do.

“During the December quarter our geologists have worked up a comprehensive exploration and development pipeline which we intend to fully exploit.

“I’m very confident we have the tenement package and more importantly, the right people to deliver on this strategy.

“When all this is done and we have successfully executed our strategy, we will be a very different company.”

 

TO READ THE COMPANY’S PREVIOUS ANNOUNCEMENT: CLICK HERE

 

Email: reception@matsa.com.au

 

Web: www.matsa.com.au

 

Matsa Resources Identifies New Lake Carey Gold Target

THE DRILL SERGEANT: Matsa Resources (ASX: MAT) released results from drilling undertaken in February 2020 at the Hill East prospect, within the company’s Lake Carey gold project in Western Australia.

Matsa Resources highlighted the location of Hill East, being within two kilometres of the company’s Devon gold mine and 10km of its Red October gold mine.

Drilling was carried out on six targets, from which five produced highly-encouraging results, including:

HE 4
5 metres at 4.01 grams per tonne gold from 6m;
9m at 3.04g/t gold from surface;
12m at 1.96g/t gold from 2m;
6m at 3.43g/t gold from 15m;
3m at 6.82g/t gold from 15m.

HE 2
4m at 3.29g/t gold from 4m;
7m at 1.53g/t gold from 20m.

HE 1
27m at 2.04g/t gold from 2m;
3m at 2.23g/t gold from 28m.

HE 5
4m at 6.3g/t gold from 13m;
13m at 1.86g/t gold from surface.

“Results from this drilling program provide strong encouragement, both to continue to evaluate near–term development potential of shallow gold mineralisation, as well as to continue exploration for associated deeper gold mineralisation,” Matsa Resources said in its ASX announcement.

“These targets are well located for consideration as potential satellite operations, which could take advantage of Matsa’s existing Red October infrastructure and ore treatment options.”

 

Email: reception@matsa.com.au

Web: www.matsa.com.au

 

Matsa Resources Confirms Fortitude North Gold Discovery

THE DRILL SERGEANT: Matsa Resources (ASX: MAT) announced new results from diamond drilling at the company’s Lake Carey gold project in Western Australia.

Matsa Resources completed the seven-hole drilling campaign at the Fortitude North target in February 2020, from which the results of the first two holes demonstrated continuity of mineralisation to the south beneath a small salt lake.

The company has claimed the results from the remaining five holes demonstrate that Fortitude North exhibits the potential to be a substantial new gold discovery in the Lake Carey district.

Highlights from the final five holes include:

20FNDD03
3.4 metres at 12.3 grams per tonne gold from 64m, including 1.7m at 21.2g/t gold;
17.2m at 3.4g/t gold from 73m.

20FNDD05
4.6m at 5.15g/t gold from 183.4m;

20FNDD06
7.9m at 1.89g/t gold from 212.6m, including 2m at 3.82g/t gold from 215.1m.

20FNDD08
4.7m at 1.31g/t gold from 137m;
2m at 8.11g/t gold from 223.5m.

Gold intercepts were encountered in six of the seven drill holes with all drill holes intersecting alteration and veining indicating continuity of the mineralised zone.

“These drill results have confirmed continuity of a zone of basement mineralisation 800 metres in length which represents just over half of the 1,500 metres strike extent of basement gold mineralisation defined by aircore drilling,” Matsa Resources said in its ASX announcement.

“This exciting discovery has become Matsa’s highest priority greenfields target and significant further drilling is planned to cover the remaining 700 metres of prospective strike, as well as to carry out infill and step out drilling to define and delineate gold mineralisation at depth, and to assess the resource potential at Fortitude North.”

 

Email: reception@matsa.com.au

Web: www.matsa.com.au

 

Established Addresses Still Provide Substantial Allure

THE CONFERENCE CALLER: Two Western Australian-based gold focused companies – one a sibling miner and the other an exploration house – are concentrating their field efforts in areas which in the past have yielded some monster discoveries, but nevertheless remained relatively under-explored. By Mark Fraser

In the case of Matsa Resources (ASX: MAT), the focus is on the Lake Carey district in the Laverton region of WA’s Eastern Goldfields, the home of the world class Granny Smith, Wallaby and Sunrise Dam gold mines.

Meanwhile, Prodigy Gold (ASX: PRX) has a significant land holding predominantly in the Northern Territory part of the Tanami Desert, where the 14.2 million gold ounce Callie mine is living proof that this is one of Australia’s most prospective exploration jurisdictions.

Matsa holds 563 square kilometres of real estate and has already generated surplus cash via mining – with the assistance of an ore purchase agreement with Sunrise Dam owner AngloGold Ashanti – at its Red Dog, Red October and Fortitude deposits.

Prodigy Gold, on the other hand, controls some 30,000 square kilometres of real estate, in which it has wholly-owned field projects as well as a number of joint ventures, with two of its partners being Australia’s biggest domestically-owned gold producer Newcrest Mining (ASX: NCM) and the US giant Newmont Goldcorp (NYSC: NEM).

During the recent RIU Explorers Conference in Fremantle, both outfits indicated they had not only been keeping busy during 2019, but were now looking to implement active agendas over the next 12 months.

Matsa executive chairman Paul Poli said his company would continue mining at Red October, bring Fortitude’s stage two operations into place, start mining studies for its Devon deposit and continue drilling at the Fortitude North, Devon and Olympic prospects.

Located about 32 kilometres south-south east of Leonora, the 550 metre deep, narrow veined and structurally-controlled Red October has historically produced around 342,000 ounces of gold from ore averaging six grams per tonne.

As it stands it currently has total indicated and inferred resources of 446,000 tonnes at 6.9g/t for 99,000 ounces, with some 85,000 ouncees of this, at the higher grade of 13.6g/t, being underground.

The deposit also has significant exploration upside, with diamond drilling returning numbers at the Red October Shear Zone like 1.6m at 36.9g/t, 4.32m at 16.3g/t, 2.84m at 15.95g/t and 6.3m at 4.54g/t as well as bonanza grades from the North Decline of 0.91m at 181.5g/t, 1.33m at 40.1g/t and 0.8m at 248g/t .

Between July last year – when the mining of ore started at Red October – and January 2020, Matsa has been building its bank balance via the production of almost 2,600 ounces from 19,912 tonnes of dirt grading some 4.54g/t.

In addition, it generated a $5.4 million cash surplus at its Red Dog mine to the south as well as another $700,000 from the Fortitude trial mine.

Earlier this year Matsa told the market its Fortitude stage two due diligence indicated the company could establish a 54,400 ounce gold operation for $6.6 million to generate a $21.8 million cash surplus over 22 months at an operating cash cost of $1,682 per ounce (assuming an average Australian gold price of $2,150/oz).

Poli suggested this was all possible because of his company’s arrangement with AngloGold Ashanti.

“We’ve got a terrific relationship through a memorandum of understanding that we signed about 18 months ago,” he said.

“But more importantly they are sponsoring us – they are incubating us, assisting us in achieving our goals.

“At Red October we have a five year ore purchase agreement in place … so we’ve got 4.5 odd years of ore delivery agreement in place.

“It’s a fantastic agreement that we have got (and) we are fully exposed to the rising gold price.”

Although the Laverton district was home to some of Australia’s biggest gold mines, Poli suggested that Lake Carey, which sits within the Laverton tectonic zone, still had plenty of exploration upside.

“We think this is a fantastic area to explore,” he told RIU delegates.

“We know that this has been quite poorly explored because of the lake that occupies a fair bit of our ground.

“Last November we embarked on quite a sizeable drill program and that drill program is still continuing today.”

During his RIU presentation, Prodigy Gold managing director Matt Briggs also indicated 2020 would be a busy year in the field for the junior.

The company is aggressively exploring four wholly-owned projects – Bluebrush, Hyperion, Tregony and North Arunta – that sit in the same corridor as the lucrative Callie operation owned by Newmont Goldcorp.

So far Prodigy Gold has established an indicated and inferred resource of 15.7 million tonnes at 2g/t for 1.1 million ounces gold, with 4.93 million tonnes at 1.96g/t for 310,000 ounces being at the Hyperion and Seuss prospects.

It may also on the brink of significantly adding to this inventory via its three Joint Ventures with a trio of successful mining houses.

Newcrest is looking to spend $12 million to earn 75 per cent of Euro, where aircore drilling of large scale targets is anticipated for 2020.

Last year the RC rig returned gold intercepts of 2m at 12g/t, 8m at 1.9g/t and 36m at 0.65g/t – with this latter intersection including 20m at 0.95g/t.

So far, the JV partners have defined a 1.4km long gold-in-oxide target.

Meanwhile, Newmont Goldcorp is also looking to pump $12 million into the ground at Tobruk, which sits just 6km south west of its 500,000 ounces per annum Callie mine.

Under the terms of the JV agreement, the gold giant will earn 70 per cent of the project and pay a further $1.5 million at sign on and an additional $1 million if it elects to proceed to the second phase of the project’s development.

At the time of Brigg’s RIU presentation, some 675 soil samples had been gathered from Tobruk for testing.

The junior’s other significant JV is with the Australia mining house Independence Group (ASX: IGO) at Lake Mackay, where RC and diamond drilling is set to test deeper base metal targets during the first half of 2020.

Aside from gold, the project area has also revealed signs of copper, cobalt, manganese and nickel.

Briggs told RIU delegates that the Tanami Desert contained “great prospective ground” with the potential for “major discoveries to be made in that part of the world”.

“Of the 15 deposits that have been discovered in the Tanami, 13 of them stick out of the ground and were predominantly discovered with soil sampling,” he noted.

“In spite of those discoveries with soil sampling, (there has been) very limited bedrock drilling.

Brigg’s said Prodigy Gold’s strategy was to keep the shallower exploration ground for itself and to JV “earlier stage exploration, exploration under cover, and other commodities” to the right partners.