Matsa Resources launches a major drilling campaign at Fortitude North targeting up to 1.85 million ounces of gold, supported by a $17.5 million loan facility from major shareholder Deutsche Balaton.
- 10,000m initial drilling program at Fortitude North targeting large gold exploration target
- Exploration target updated to 10-23 million tonnes at 2.0-2.5 g/t gold (643,000 to 1.85 million ounces)
- Follow-up infill drilling planned later in 2026 to define maiden resource
- Additional drilling at other Lake Carey sites to target open pit resources
- $17.5 million loan facility secured from Deutsche Balaton with ASX waiver for security
Fortitude North Drilling Campaign Launches
Matsa Resources Limited has announced the commencement of an aggressive 10,000-metre diamond drilling program at its Fortitude North prospect, part of the broader Lake Carey Gold Project in Western Australia. This campaign, starting in the first quarter of 2026, aims to test a substantial exploration target that has been updated following extensive drilling and geological modelling conducted since 2018.
The Fortitude North target now ranges between 10 to 23 million tonnes of ore grading 2.0 to 2.5 grams per tonne of gold, translating to a conceptual gold content of approximately 643,000 to 1.85 million ounces. The mineralisation is interpreted as a series of stacked, north-plunging shoots extending over a strike length exceeding 1.7 kilometres, with the system remaining open along strike in both directions.
Strategic Exploration and Resource Definition
The initial drilling will focus on the upper, shallower sections of these mineralised shoots, including areas where previous drilling returned high-grade intersections such as 22 metres at 9.2 g/t gold. Should the initial results prove promising, Matsa plans a follow-up infill drilling program later in 2026 to define a maiden mineral resource at Fortitude North.
Beyond Fortitude North, Matsa intends to advance exploration and infill drilling at other key targets within the Lake Carey Gold Project, including Red October, Bindah, Hill East, and Gallant. These efforts are aimed at delineating potential open pit resources to support the company’s long-term goal of establishing a new gold processing plant servicing the region.
Funding Secured to Support Growth Ambitions
Backing this ambitious exploration and development program, Matsa has secured a $17.5 million debt facility from its major shareholder, Deutsche Balaton Aktiengesellschaft, which holds nearly 22% of the company. The facility is structured in three tranches, with the first $5 million tranche available immediately and subsequent tranches subject to conditions including granting security over key tenements and regulatory approvals.
The loan carries a relatively high interest rate of 25% and offers flexible repayment options, including cash or gold bullion repayment capped at A$5,750 per ounce. Importantly, Matsa has obtained an ASX waiver allowing it to grant security to Deutsche Balaton without shareholder approval, streamlining access to these funds.
Current Resource Base and Outlook
The Lake Carey Gold Project currently holds a global mineral resource estimate of approximately 949,000 ounces of gold at an average grade of 2.5 g/t. While the Fortitude North exploration target remains conceptual and not yet classified as a mineral resource, the upcoming drilling campaign represents a critical step towards potentially expanding this resource base significantly.
Executive Chairman Paul Poli emphasised the pivotal nature of 2026 for Matsa, highlighting the company’s commitment to unlocking value from its extensive gold assets while maintaining production momentum at the Devon Pit Gold Mine. The combination of ongoing production, aggressive exploration, and secured funding positions Matsa to advance its strategic objectives in the competitive gold sector.
Bottom Line?
Matsa’s 2026 drilling and funding strategy could redefine its resource profile, but high loan costs and exploration risks remain key considerations.
Questions in the middle?
- Will the initial 10,000m drilling at Fortitude North confirm the high-grade mineralisation model?
- How will Matsa manage the financial impact of the 25% interest loan facility if fully drawn?
- What timeline and scale can investors expect for resource upgrades and potential production expansion?