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