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Matsa Resources Limited (“Matsa”, “Company”) is pleased to advise the receipt the results of an updated Scoping Study conducted by Linden Gold Alliance Limited (“Linden”) on the Devon Pit which is the subject of a joint venture agreement between Matsa and Linden.
HIGHLIGHTS
- The Devon Joint Venture has completed an updated Scoping Study on the potential restart of mining at the Devon Pit has delivered excellent results including:
- Project cash flow surplus (pre-tax) up to A$50.4m over 16 months (at A$3,000/oz)
- Production of 250kt at 5.25g/t Au for a recovered ~39koz (93% recovery)
- All-in cash costs of A$1,613/oz gold
- Pre-tax project IRR of +470%
- Mining of ore commences from surface
- Progressing to Definitive Feasibility Study (DFS) expected to be finalised by 31 August 2023, with proof of funding by 30 September 2023 and FID expected late 2023
The Devon Joint Venture (“Devon JV”) is a 50/50 split Profit Share Joint Venture between Matsa Resources Ltd and Linden Gold Alliance Limited (Linden) with Linden being appointed the joint venture manager. Under the terms of the Devon JV, Matsa is free carried on a non-recourse basis for all costs associated with permitting, financing, development and mining of the Devon Pit with Linden required to meet certain milestones.
The Scoping Study demonstrates a strong financial outcome with potential to mine the Devon Pit over a 16-month mine life generating cash flows up to $50.4M with a pre-tax project IRR of +470%.
Table 1: Summary of Scoping Study Financials
At an all-in cost of A$1,613/oz, the Scoping Study indicates potential profit margins per ounce of +A$1,380/oz (based on current spot prices).
Matsa Executive Chairman Mr Paul Poli commented:
“It is pleasing that the updated Scoping Study for the Devon Pit conducted by Linden illustrates delivery of strong margins for the Devon JV and improves on the April 2021 study conducted by Matsa. Encouragingly, the grades reported in the updated study of +5g/t compare favourably with the excellent historical grades reported by GME Resources in 2015 and 2016. Matsa now looks forward to the Devon JV progressing the DFS, due for completion by 31 August 2023.”
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