How Matsa’s $11.7M Gold Sales Fuel New Drilling at Lake Carey
Matsa Resources reported solid progress at its Lake Carey Gold Project, delivering $11.73 million in gold sales and initiating new exploration drilling to boost its resource base.
- First gold processing campaign at Devon Pit yields $11.73M sales
- Mining and processing for Campaign 2 underway with 30,000t ore stockpiled
- AngloGold Ashanti pays $1.5M second option fee, exploration ongoing
- $15M funding package secured, discussions for further financing in progress
- Exploration drilling planned at Fortitude North and other Lake Carey prospects
Strong Operational Momentum at Devon Pit
Matsa Resources Limited has reported a productive quarter ending 31 December 2025 at its flagship Lake Carey Gold Project in Western Australia. The company completed its first processing campaign at the Devon Pit Gold Mine, achieving gold sales of $11.73 million at an average price of $6,170 per ounce and a recovery rate slightly above budget at 84.72%. Approximately 49,000 tonnes of ore were processed, aligning closely with expectations.
Mining operations continued smoothly with Campaign 2, delivering around 30,000 tonnes of ore stockpiled and ready for processing, which commenced on schedule in early January 2026. Grade control drilling is ongoing in preparation for Campaign 3, planned for April 2026. Despite encountering unexpected water inflows in the West Lode that delayed about 15% of higher-grade ore mining, the company resolved these issues before quarter-end, maintaining operational continuity.
Exploration and Resource Growth Initiatives
Beyond mining, Matsa is actively advancing exploration efforts across the Lake Carey project area. Planning is underway for a new drilling program at Fortitude North, targeting resource growth based on previous high-grade intercepts. Additional resource definition drilling is scheduled at Fortitude, Red October, Gallant, and Bindah deposits to upgrade and expand the resource base.
The company is also progressing a research and development project focused on seismic survey methodologies in hyper-saline environments, with upcoming drilling at Fortitude North and BE1 expected to support innovative downhole seismic techniques.
Strategic Partnership and Financial Position
Matsa’s partnership with AngloGold Ashanti continues to bear fruit, with AngloGold paying the second option fee of $1.5 million under their tenement option agreement. AngloGold has completed initial field surveys and is preparing to commence exploration drilling on Matsa’s tenements, with Matsa entitled to all resulting data.
Financially, Matsa secured a $15 million funding package in October 2025, comprising a $10 million share placement and a $5 million loan facility, the latter of which was not drawn and has since expired. The company is in discussions with alternative financiers to secure improved funding terms. At quarter-end, Matsa held $3.3 million in cash and $14 million in run-of-mine ore stocks, totaling $17.3 million in liquid and near-liquid assets.
Outlook and Next Steps
Looking ahead, Matsa plans to complete mining and ore delivery for Campaign 2 and commence Campaign 3 processing in April. Exploration drilling programs will ramp up at Fortitude North and BE1, alongside resource definition work at other key deposits. The company expects gold sales proceeds from ongoing production to improve cash flow significantly in the coming quarters, supporting its aggressive growth and development strategy.
With a stable resource base of approximately 949,000 ounces of gold at 2.5 grams per tonne, Matsa is positioning itself for steady production growth and resource expansion, supported by strategic partnerships and a strengthening financial foundation.
Bottom Line?
Matsa’s steady production and exploration momentum set the stage for potential resource growth and improved cash flow in 2026.
Questions in the middle?
- How will the delayed higher-grade ore mining in the West Lode affect near-term production and revenue?
- What are the prospects and timelines for AngloGold Ashanti’s upcoming drilling results on Matsa’s tenements?
- Will Matsa secure new financing on improved terms to support its expanded exploration and development plans?
