Matsa Resources Kicks Off Gold Production at Devon Pit, Eyes Expansion

Production Milestone Achieved

Matsa Resources has reached a significant operational milestone with the commencement of gold production at its Devon Pit Gold Mine, part of the broader Lake Carey Gold Project. After years of strategic planning and development, the company successfully completed its first ore processing campaign in late September 2025, processing approximately 50,000 tonnes of ore. This achievement follows a series of key steps throughout 2025, including the declaration of a maiden gold reserve of 104,000 ounces and the execution of mining and processing agreements.

Robust Project Economics

The Devon Pit feasibility study, released earlier this year, highlights strong financial metrics underpinning the project. Using a gold price assumption of A$5,000 per ounce, the study forecasts life-of-mine revenue of around A$208 million, with operating costs and capital expenditure well controlled to deliver attractive free cash flow. The initial mining campaign has already yielded approximately 2,300 ounces of gold, aligning with budget expectations and setting the stage for steady-state operations.

Advancing Strategic Partnerships

Alongside operational progress, Matsa has advanced its AngloGold Option Agreement, a key strategic partnership. The agreement became unconditional in June 2025, with Matsa receiving option fees totaling A$5 million to date. Further instalments are scheduled through 2026, culminating in a potential full transaction payment exceeding A$100 million, plus royalties on new resources. This partnership not only validates the quality of Matsa’s assets but also provides significant financial upside linked to gold price movements.

Exploration and Growth Pipeline

Exploration remains a core focus, with drilling programs underway at Fortitude North and other promising targets within the Lake Carey region. Fortitude North, in particular, has demonstrated impressive high-grade intercepts, suggesting a mineralised system larger than the existing Fortitude Gold Mine. Matsa’s pipeline includes multiple greenfields and brownfields projects, with plans to extend mine life beyond a decade through ongoing exploration and optimisation studies.

Looking Ahead

Looking forward, Matsa aims to capitalise on its momentum by progressing additional ore processing campaigns, expanding mining operations, and advancing approvals for a company-owned processing plant targeted for 2026-2027. The company also plans to finalise mining proposals for several deposits and expand accommodation infrastructure to support growing operations. These initiatives collectively position Matsa to deliver sustained shareholder value and operational growth over the coming years.