Can Matsa Sustain Growth Amid AngloGold Option and Exploration Risks?
Matsa Resources has officially commenced gold production at its Devon Pit Gold Mine, marking a significant step forward in its Lake Carey Gold Project. With maiden reserves confirmed and a robust option agreement in place with AngloGold Ashanti, the company is poised for growth amid ongoing exploration success.
- Gold production started at Devon Pit with first ore processing completed
- Maiden gold reserve of 104,000 ounces and resource of 949,000 ounces at Lake Carey
- AngloGold Ashanti option agreement progressing with significant fees received
- Exploration drilling underway at Fortitude North and other Lake Carey targets
- Strong financial metrics from Devon feasibility study support project viability
Production Milestone Achieved
Matsa Resources has reached a pivotal milestone with the commencement of gold production at its Devon Pit Gold Mine, part of the broader Lake Carey Gold Project. The company completed its first ore processing campaign in late September 2025 and is preparing for a second campaign scheduled for January 2026. This rapid progression from maiden reserve declaration in January to production within months underscores the effectiveness of Matsa’s strategic planning and operational execution.
Robust Reserves and Resource Base
The Devon Pit boasts a maiden gold reserve of 104,000 ounces at an average grade of 2.4 grams per tonne, supported by a broader Lake Carey resource of 949,000 ounces at 2.5 grams per tonne. These figures provide a solid foundation for near-term production and longer-term exploration upside. The feasibility study released earlier in 2025 highlights strong project economics, with expected gold sales exceeding 40,000 ounces by the end of 2026 and an all-in cost per ounce well positioned against current gold prices.
Strategic Partnership with AngloGold Ashanti
Matsa’s option agreement with AngloGold Ashanti remains a cornerstone of its growth strategy. The company has received initial option fees totaling AUD 5 million, with further installments due by mid-2026 and a potential full transaction payment exceeding AUD 100 million by the end of next year. This partnership not only validates the quality of Matsa’s tenements but also provides significant financial flexibility to advance exploration and development activities.
Exploration and Growth Prospects
Exploration continues to be a key focus, particularly at Fortitude North, where drilling has returned impressive high-grade intercepts, some exceeding 12 grams per tonne over several meters. The company is also advancing drilling programs at other promising Lake Carey targets such as Bindah and BE1. These efforts aim to extend mine life beyond the current projections and support the development of a Matsa-owned processing plant anticipated for 2027-2028.
Market Response and Outlook
Reflecting these operational and exploration successes, Matsa’s share price has surged 57% in 2025, with market capitalization nearly doubling to over AUD 100 million. The company’s disciplined approach to mining, combined with strategic partnerships and a strong pipeline of projects, positions it well to capitalize on favourable gold market conditions. However, investors will be watching closely as the second processing campaign unfolds and further drilling results are released.
Bottom Line?
Matsa’s transition from development to production at Devon Pit sets the stage for a transformative year ahead, with exploration and partnership milestones poised to drive further value.
Questions in the middle?
- How will the second ore processing campaign impact production and cash flow forecasts?
- What are the timelines and risks associated with the AngloGold Ashanti option agreement’s final payment?
- Can ongoing exploration at Fortitude North and other targets materially extend the Lake Carey mine life?
