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.”







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.”








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.”








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.”








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.”





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:

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.

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

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

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.”





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.



Matsa Resources Claims New Lake Carey Gold Discovery

THE DRILL SERGEANT: Matsa Resources (ASX: MAT) has claimed a new gold discovery at the company’s Lake Carey gold project in Western Australia.

Matsa Resources made the announcement on the back of results from aircore drilling on the FF1 target, which is located 2.5 kilometres north of Matsa’s recently discovered Fortitude North gold deposit.

The company achieved anomalous gold values in seven drill holes that included intercepts in basement and in the overlying transported cover.

Two drill holes located 300 metres apart, intersected anomalous gold values greater than 0.1 grams per tonne in basement rocks, with one intercept of:

3 metres at 1.49 grams per tonne gold from 108m to end of hole (EOH).

Matsa reported that highly anomalous gold values between 0.2g/t gold and 0.24g/t gold were intersected in sandy transported cover between the two basement intersections which the company deems probably represent the products of erosion of primary gold mineralisation in basement.

Two other anomalous basement gold intercepts with values over 0.1g/t gold at EOH were achieved in drill holes 20FF1AC09 and 20FF1AC12.

“Drilling was designed to test a target along the Fortitude Fault, approximately 2.5 kilometres north of Fortitude North, where drilling by previous explorers had been mostly unable to reach basement because of drilling difficulties in loose sands and gravel at the base of the transported cover sequence,” Matsa Resources said in its ASX announcement.

“The discovery of new gold mineralisation by a limited aircore drilling program at FF1, has highlighted the prospectivity of the Fortitude Fault zone which extends over the full extent of the Lake Carey gold project from north to south.

“This discovery so soon after the Fortitude North discovery, emphasises the potential for further gold mineralisation along established “gold trends”, particularly in areas where previous exploration has been hampered by transported cover.”







Saturn Metals Confirms High-Grade Mineralisation at Apollo Hill

THE DRILL SERGEANT: Saturn Metals (ASX: STN) announced the first results from the 2020 reverse circulation (RC) drilling campaign underway at the company’s 100 per cent-owned Apollo Hill gold project in Western Australia.

Matsa Resources Extends Fortitude North Mineralisation

THE DRILL SERGEANT: Matsa Resources (ASX: MAT) has received early results from diamond drilling at Fortitude North, located within the company’s Lake Carey gold project in Western Australia.

Ardiden Identifies High-Grade Gold Hits in Pickle Lake Review

THE DRILL SERGEANT: Ardiden Limited (ASX: ADV) scored well from a recently completed review of historical drillhole data at the company’s Pickle Lake gold project in Ontario, Canada.

Alloy Resources Acquires New Exploration Pipeline Via Dingo Resources

THE BOURSE WHISPERER: Alloy Resources (ASX: AYR) has entered into a binding Heads of Agreement to acquire unlisted public company Dingo Resources Limited.


Matsa Resources Extends Fortitude North Mineralisation

THE DRILL SERGEANT: Matsa Resources (ASX: MAT) has received early results from diamond drilling at Fortitude North, located within the company’s Lake Carey gold project in Western Australia.

Matsa Resources originally planned for a four0hole drilling program, however it ended up completing seven drill holes (20FNDD02 – 20FNDD08) and has to date received assay results for only two of these.

Drilling was designed to test the strike extent of gold mineralisation the company had previously intersected by diamond and RC drilling in 2018 and 2019.

Drilling at the time was limited to only the northern end of a 1,500 metre long basement gold anomaly discovered by Matsa’s aircore drilling in 2018.

“All seven diamond drill holes intersected alteration and veining which appear to be a continuation of the mineralised zone,” Matsa Resources said in its ASX announcement.

“This program has tested only half of the 1,500m basement gold anomaly.”

Key intercepts include:

4 metres at 13.63 grams per tonne gold from79m, including 1m at 10.2g/t gold from 81m and 1m at 42.9g/t gold from 82m; and

10.3m at 3.48g/t gold from 124.6m, including 6.5m at 4.79g/t gold from127m, including 1m at 13.9g/t gold from 127m.

“Originally only four drill holes were planned but due to the presence of distinctive and highly prospective alteration and veining, the program was expanded to seven drill holes,” Matsa explained.

“Further drilling is planned over the remaining strike extent of the anomaly and to test the resource potential of this discovery.”