Matsa Advances Devon Pit with First Processing Campaign Complete
Matsa Resources has successfully completed its initial processing campaign at the Devon Pit Gold Mine, aligning with budget and schedule, and is now gearing up for its second phase of mining and processing.
- First processing campaign of 49,082 tonnes completed on time and within budget
- Mining schedule updated with a higher gold price assumption of $4,900/oz
- Increased oxide ore mined in Campaign 1, with high-grade ore deferred to Campaign 2
- Second processing campaign set to begin late December 2025
- Mine expected to operate for approximately 18 months, producing over 40,000 ounces of gold
Completion of Initial Processing Campaign
Matsa Resources Limited has marked a significant milestone with the completion of its first processing campaign at the Devon Pit Gold Mine. The campaign processed 49,082 tonnes of ore, achieving both timing and cost targets as outlined in the company's budget. This initial phase has provided valuable operational insights and set a solid foundation for the mine’s ongoing activities.
Revised Mining Schedule and Price Optimisation
In response to evolving market conditions, Matsa has updated its mining schedule by optimising for a higher gold price of $4,900 per ounce, up from the previous $4,250 per ounce assumption. This adjustment has influenced the sequencing of ore extraction, resulting in a greater volume of oxide ore mined during Campaign 1, albeit at a slightly lower grade. The higher-grade ore originally planned for the end of the first campaign is now scheduled for extraction in the upcoming Campaign 2.
Operational Flexibility and Ongoing Drilling
Mining operations have successfully opened the full surface extent of the final designed open pit, which enhances flexibility in mining and scheduling decisions moving forward. Concurrently, Matsa has commenced a second stage of grade control drilling, involving approximately 12,000 metres of reverse circulation drilling across the West and Main lodes. This drilling is critical to refining ore body models and ensuring production targets remain on track.
Looking Ahead to Campaign 2 and Production Outlook
Mining for the second campaign is already underway, with processing scheduled to commence on 31 December 2025. The mine is projected to operate for around 18 months, with an expected gold output exceeding 40,000 ounces. Final reconciliations of the first campaign’s production are pending, including gold in circuit calculations and assay results from the Perth Mint, which will provide a clearer picture of actual recoveries and grades.
Strategic Implications
This operational update underscores Matsa’s disciplined approach to managing its Devon Pit asset amid fluctuating gold prices. By recalibrating its mining schedule and maintaining cost discipline, the company positions itself to maximise value extraction while navigating the inherent uncertainties of gold mining. Investors will be watching closely as the second campaign unfolds and further production data becomes available.
Bottom Line?
Matsa’s timely completion of its first processing campaign sets the stage for a pivotal second phase that could define the mine’s profitability trajectory.
Questions in the middle?
- How will final reconciliations and assay results impact the projected gold grades and recoveries?
- What operational challenges might arise as the mine transitions to higher-grade ore in Campaign 2?
- How sensitive is Matsa’s updated mining schedule to fluctuations in the gold price beyond the current $4,900/oz assumption?
