Devon Pit Yields 2,600 Oz Gold as Matsa Secures $15M Funding Boost

Mining Progress at Devon Pit

Matsa Resources Limited has marked a significant milestone with the commencement of mining operations at its Devon Pit Gold Mine, part of the flagship Lake Carey Gold Project in Western Australia. During the quarter ended 30 September 2025, the company completed its first processing campaign, handling 49,082 tonnes of ore and producing approximately 2,604 ounces of gold bullion. Of this, 1,901 ounces were processed and refined, with around 703 ounces stockpiled for the upcoming second processing campaign scheduled for December 2025.

The mining operation focused initially on lower grade oxide and transitional ore at Stage 1 of the West Lode, with the full surface extent of the final open pit mine now accessible, providing operational flexibility. Grade control drilling totaling 2,437 metres was completed to support ongoing mining activities, with plans for an additional 8,000 metres in the next quarter to refine the mine plan further.

Funding and Financial Position

Post-quarter, Matsa secured a $15 million funding package comprising a $10 million capital raising and a $5 million secured loan facility. This capital injection is aimed at advancing development options across the broader Lake Carey Gold Project, including feasibility studies and drilling programs at key deposits such as Fortitude North and BE1. The capital raising attracted participation from existing major shareholders and new institutional investors, underscoring confidence in Matsa’s growth trajectory.

Despite a negative operating cash flow of $7.75 million during the quarter, primarily due to mining ramp-up and processing expenses, the company ended the period with cash, gold bullion, and ore stocks valued at $18.59 million at spot prices. The funding package and expected gold sales provide a solid financial foundation for ongoing operations and exploration.

Exploration and Development Outlook

Beyond Devon, Matsa is actively progressing exploration and development across the Lake Carey project. AngloGold Ashanti has commenced fieldwork on optioned tenements adjacent to Matsa’s holdings, including gravity surveys and heritage clearances, with drilling anticipated in the coming months. Matsa itself is preparing for extensive drilling campaigns at Fortitude North and BE1, sites that have shown promising gold anomalies and visible gold in previous drilling.

Additionally, Matsa is undertaking mining optimisations for several deposits including Fortitude, Red October, Gallant, and Bindah, with plans to build a 1 million tonnes per annum processing plant at the Fortitude Gold Mine site. This infrastructure development aims to unlock the value of Lake Carey’s substantial 949,000-ounce gold resource base.

Corporate and Operational Highlights

The quarter also saw the exercise of over 85 million unlisted options, raising $5.54 million in funds. The company continues to manage its secured loan facilities prudently, with repayment schedules aligned to project milestones. Matsa’s executive team, led by Executive Chairman Paul Poli and Director Pascal Blampain, remains focused on balancing operational ramp-up with strategic growth initiatives.

Looking ahead, Matsa plans to maintain steady mining and processing at Devon, advance exploration drilling, and progress feasibility studies that will shape the next phase of development at Lake Carey. The company’s approach reflects a measured yet ambitious strategy to build a sustainable gold mining operation in Western Australia.