Devon Pit Gold Mine Maiden Reserve: 46,000oz at 4.59g/t Gold Confirmed

Maiden Reserve Marks a Milestone

Matsa Resources Limited has taken a significant step forward with the announcement of a maiden Ore Reserve of 46,000 ounces of gold at its Devon Pit Gold Mine, part of the broader Lake Carey Gold Project in Western Australia. This reserve, estimated at 309,000 tonnes grading 4.59 grams per tonne gold, underpins a pre-feasibility study (PFS) that highlights the project's strong economic potential.

Robust Pre-Feasibility Study and Low Capex

The PFS, conducted using a conservative gold price of A$3,500 per ounce, demonstrates a production target of approximately 50,000 ounces over a 15 to 17-month mine life. Importantly, the study anticipates low capital expenditure, estimated at around A$2 million, thanks to existing infrastructure such as haul roads and an accommodation village at the nearby Red October mine. Operating costs are projected at A$65 million, with processing and haulage costs estimated at A$35 million, reflecting the plan to transport ore to regional third-party processing facilities.

Permitting and Environmental Readiness

All necessary regulatory approvals are in place, including mining leases, water licenses, and environmental permits. The project area has been assessed as non-acid forming, with comprehensive environmental studies indicating minimal risk to local flora and fauna. The proximity to Lake Carey and the absence of sensitive environmental or Aboriginal heritage sites further support the project's readiness to proceed.

Processing and Logistics

With no processing plant on-site, Matsa is negotiating toll treatment or ore purchase agreements with multiple regional processing facilities. These arrangements will be critical in determining the project's cash flow profile and operational flexibility. Haulage agreements are also nearing finalisation, leveraging existing road infrastructure to optimise logistics.

Financing and Next Steps

Advanced discussions with financiers aim to secure up to A$15 million in working capital, with anticipated interest costs incurred only upon drawdown. The company expects to finalise financing and processing contracts shortly, targeting mining commencement in the first quarter of 2025. Concurrently, Matsa continues exploration activities at other Lake Carey prospects, potentially building a pipeline of development opportunities to complement Devon.

Strategic Implications

The Devon Pit Gold Mine represents an organic growth opportunity for Matsa Resources, offering exposure to high-grade gold production during a period of elevated gold prices. The project's modest capital requirements and existing infrastructure position it well for rapid development and cash flow generation. However, the reliance on third-party processing and haulage agreements introduces operational dependencies that will require careful management.