Devon Pit Gold Mine Begins Production with 104,000oz Reserve and A$95M Cash Flow Forecast
Matsa Resources has officially commenced gold production at its Devon Pit Gold Mine, marking a pivotal step backed by a robust feasibility study and strategic agreements. The company is advancing exploration and progressing a significant transaction with AngloGold Ashanti, positioning itself for growth.
- Gold production started at Devon Pit Gold Mine in June 2025
- Maiden gold reserve of 104,000 ounces at Devon within a 949,000-ounce Lake Carey resource
- Feasibility study projects A$95.5 million free cash flow at A$5,000/oz gold price
- Key haulage and processing agreements executed to support operations
- Ongoing exploration at Fortitude North and progressing AngloGold Ashanti option agreement
Production Milestone Achieved
Matsa Resources has reached a significant operational milestone with the commencement of gold production at its Devon Pit Gold Mine in Western Australia. This achievement is the culmination of over two years of strategic planning and development, including a maiden gold reserve announcement earlier this year and a comprehensive feasibility study released in February 2025. The mine is fully permitted and supported by existing infrastructure, including haulage routes and processing facilities.
Robust Project Economics
The Devon Pit feasibility study outlines strong financial metrics, projecting a life-of-mine revenue of approximately A$208 million and a free cash flow of A$95.5 million at a gold price of A$5,000 per ounce. Operating costs are competitive, with an all-in cost per ounce estimated at around A$2,772. These figures reflect the high-grade nature of the ore, with mining inventory averaging 4.6 grams per tonne of gold.
Strategic Agreements and Infrastructure
To support production, Matsa has executed key agreements including a haulage contract with BCM and a processing agreement with FMR (Greenfields), which operates a mill capable of processing 1.1 million tonnes per annum. The company has also appointed JT Metallurgical Services to optimise ore processing efficiency. Infrastructure such as the Red October camp and an airstrip are already in place, facilitating smooth operations and logistics.
Exploration and Growth Pipeline
Beyond Devon, Matsa is actively advancing exploration at Fortitude North, a promising greenfields target with recent drilling revealing high-grade gold intercepts. The company plans further drilling to expand resources and test extensions at Devon. Additionally, Matsa is progressing a strategic option agreement with AngloGold Ashanti, which includes staged payments and a potential transaction valued at over A$81 million, plus royalties on new resources.
Outlook and Market Position
With gold production underway and a strong pipeline of projects, Matsa Resources is well positioned to deliver shareholder value. The company’s disciplined approach to development, combined with strategic partnerships and a focus on operational efficiency, sets a solid foundation for growth in the competitive Western Australian gold sector.
Bottom Line?
Matsa’s production start at Devon signals a new chapter, but execution on exploration and the AngloGold deal will be critical to sustaining momentum.
Questions in the middle?
- How will Matsa manage haulage agreements to optimise cost and logistics?
- What impact will gold price fluctuations have on Devon’s projected cash flow?
- When can investors expect results from the upcoming Fortitude North drilling campaign?