Matsa Resources has commenced mining at its Devon Pit Gold Mine with first ore processing slated for September 2025, while also receiving a significant $5.7 million deposit from AngloGold Ashanti under a $101 million tenement option agreement.
- Mining started at Devon Pit Gold Mine with 46,000 ounces targeted over 18 months
- First ore batch to be processed at FMR Greenfield plant in September 2025
- AngloGold Ashanti’s $101M tenement option agreement now unconditional
- Strong exploration results at Fortitude North with high-grade gold intercepts
- Cash and receivables total $6.91M; $6M funding committed by Blue Cap Mining
Mining Operations Begin at Devon Pit
Matsa Resources Limited has marked a key operational milestone by commencing mining activities at its Devon Pit Gold Mine, part of the flagship Lake Carey Gold Project in Western Australia. The company plans to extract a reserve of 309,000 tonnes at an average grade of 4.6 grams per tonne of gold, aiming to produce approximately 46,000 ounces over an 18-month period. Ore is currently being stockpiled onsite, with the first batch of 50,000 tonnes scheduled for processing at FMR’s Greenfield plant in September 2025.
All necessary equipment, machinery, and infrastructure have been mobilised to the site, and dewatering operations have been commissioned to manage historical pit water, discharging it responsibly into Lake Carey. The Red October Village accommodation has been reactivated to support ongoing mining operations.
Strategic Partnership with AngloGold Ashanti
In a significant corporate development, Matsa’s Tenement Option Agreement with global mining giant AngloGold Ashanti Australia Limited (AGA) has become unconditional. Matsa has received the first $5.7 million deposit from AGA as part of a $101 million option deal covering select tenements within the Lake Carey Gold Project. AngloGold has nominated key tenements including M39/411, M39/599, M39/600, M39/610, and M39/721 for exploration and potential acquisition, while other assets revert to Matsa.
This agreement provides Matsa with substantial financial backing and validation from a major industry player, with further option fee payments scheduled over the next 12 months. AngloGold’s planned activities include heritage, gravity, and seismic surveys, signaling a robust exploration campaign ahead.
Exploration Success at Fortitude North
Exploration drilling at Fortitude North has yielded promising results, reinforcing the potential for resource expansion. Notable intercepts include 10.5 meters at 6.57 grams per tonne gold and 8.3 meters at 9.00 grams per tonne, among others. These results confirm the presence of multiple stacked lodes plunging northward and dipping east, supporting Matsa’s ongoing exploration strategy.
Additional drilling north of the Devon Pit has also confirmed extensions of mineralisation, with economic-grade gold intercepts encountered. Matsa plans further drilling to fully delineate these zones and enhance the mine plan.
Financial Position and Outlook
At the end of the quarter, Matsa reported cash, investments, and receivables totaling $6.91 million. Blue Cap Mining Pty Ltd has committed $6 million in funding to support Devon Pit mining operations, sharing half the mining costs. The company posted a positive operating cash flow of $3.9 million for the quarter, bolstered by the AngloGold option fee receipt and ongoing operational efficiencies.
Looking ahead, Matsa aims to ramp up production at Devon, with ore haulage and processing campaigns planned quarterly. The company also continues to explore its lithium projects in Thailand and advance seismic survey methodologies in collaboration with Curtin University, reflecting a diversified growth approach.
Bottom Line?
With mining underway and strategic partnerships solidified, Matsa Resources is poised for a pivotal growth phase, though market watchers will keenly await AngloGold’s final option decision and production ramp-up outcomes.
Questions in the middle?
- Will AngloGold Ashanti exercise its option to acquire the nominated tenements, and on what timeline?
- How will the processing performance at FMR Greenfield plant impact Devon Pit’s production targets?
- What further exploration upside exists at Fortitude North and other Lake Carey prospects?