Matsa Resources (ASX: MAT) commences mining at Red October in Western Australia’s Eastern Goldfields

Highlights

  • Matsa commenced mining at Red October in Western Australia’s Eastern Goldfields, making it the most energetic period in Matsa’s recent history.
  • The Red Dog Gold Project exceeded previous forecasts with the production of 12,704 ounces and an operating cash surplus of $5.5 million and continued exploration of Lake Carey was conducted of 43 drill holes for 3,295m.
  • Cash and liquid assets are sitting at $4.7 million as at the end of the quarter.

Matsa (ASX: MAT) has released its report on activities for the quarter ending 31st March 2019. Of most noted importance, Matsa commenced mining at Red October in Western Australia’s Eastern Goldfields, making it the most energetic period in Matsa’s recent history. The quarter’s activities at Red October included completion of the initial mine plan, mining commencement and grade control drilling. First ore production is scheduled for April 2019.

Mining at Red Dog as part of the Red Dog Gold Project exceeded previous forecasts with the production of 12,704 ounces and an operating cash surplus of $5.5 million. Other activities included environmental rehabilitation, diamond drilling RC Drilling. Rehabilitation of the site was also undertaken during the quarter to ensure successful ongoing mining.

Continued exploration of Lake Carey was conducted of 43 drill holes for 3, 295m including diamond and RC Drilling Fortitude North, RC drilling Golden Ring, diamond and RC Drilling Tin Dog and Red Dog and multi-element assays on historic drill holes.

Cash and liquid assets are sitting at $4.7 million as at the end of the quarter. Matsa intends an extension of the loan and an increase to the debt facility to $5 million to allow for a drawdown of $1 million for the acquisition of mining equipment and refurbishment.

 

About Matsa Resources Limited

Matsa is an ASX listed explorer/developer who has become a gold producer following the acquisition and development of the Fortitude gold mine. Fortitude forms part of the Lake Carey gold project south of Laverton. Matsa has a pipeline of quality projects within Australia and central Thailand. Matsa has recently acquired the Red October Gold mine near Lake Carey which boosts the mining potential within the area.

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