Matsa Resources Limited (ASX: MAT) has announced a highly encouraging update from the RC drilling at the Devon mine site of its Lake Carey gold project in WA.
The company reported that four out of five RC drillholes at the Devon mine returned highly encouraging gold intercepts. This includes the Main Lode as well as the Hanging Wall Lode.
Significant intercepts from the Main Lode includes 3m @ 35.03 g/t Au; 3m @ 5.93 g/t Au and 3m @ 1.56 g/t Au; and 3m @ 1.38 g/t Au.
Highlights from the Hanging Wall Lode includes 15m @ 20.78 g/t Au Incl. 3m @ 94.1 g/t Au and 3m @ 5.98 g/t Au.
The company said that the results to date are from 3m composite samples with individual 1m samples yet to be assayed. MAT said that these results are highly encouraging and the next stage of drilling will be planned upon receipt of assays from 1m samples.
The company said that the recent open pit mining was carried out to the limits of mining lease boundary with third party ML. Matsa acquired both leases which removes this restriction.
Lake Carey gold project
Matsa now holds a ground position of ~563km2 at Lake Carey, which is highly prospective for new gold discoveries over several 100% Matsa held tenements. The Lake Carey gold project is located in the Eastern Goldfields of Western Australia.
Important areas for Matsa’s growth plan of Lake Carey include Red October Gold Mine, Fortitude Stage 2 Gold Mine, Fortitude North, and Devon.
The Devon project includes the Devon mine and a significant number of historic gold workings in the northern part of the Linden goldfield.
The Devon deposit is located 8km south of Red October and comprises a moderately SW dipping zone of strong sulphidic shears and quartz veins within mafic and ultramafic volcanics and minor gabbro (Main Lode Zone). The hanging wall zone is located above the Main Lode zone.
The Devon Main Lode zone was previously mined by GME Resources Ltd.
Drilling at Devon
An RC drilling programme was carried out in December 2019, comprising a total of 5 drill holes for 733m at the Devon mine, 19DVRC001, 19DVRC002, 19DVRC003, 19DVRC004, and 19DVRC005.
The company said that the December RC drilling programme was designed to test for extensions or repetitions of high-grade gold mineralisation at Devon, with potential to complement gold production from Matsa’s nearby Red October gold mine.
These 5 drill holes completed were designed to test continuity of gold mineralisation below historic underground and more recent open-pit mine workings.
Assay results have now been reported from 3 metre composite samples, while the original 1m samples from all composites containing >0.1 g/t Au are to be assayed.
High-grade intercepts from Devon
Matsa reported that highly encouraging gold assay results were returned in four of the five drill holes completed.
The company said that three of these intercepts are interpreted to lie on a continuation of the Devon Main Lode zone while the fourth one was intersected in the Hanging Wall zone.
Main Lode Zone
Significant intercepts include 3m @ 35.03 g/t Au from 92m (hole 19DVRC001), 3m @ 1.38 g/t Au from 104m (hole 19DVRC002), and 3m @ 5.93 g/t Au from 104m and 3m @ 1.56 g/t Au from 110 (hole 19DVRC005).
Important intercepts include 15m @ 20.78 g/t Au from 23m Inc 3m @ 5.98 g/t Au from 26m and 3m @ 94.1 g/t Au from 29m (hole 19DVRC003).
The company said that the Main lode intersections confirm the continuation of high-grade gold mineralisation below previously mined high-grade open pit.
Matsa reported that the Hanging Wall lode was not previously mined and these new results illustrate potential for new resources at Devon.
Devon’s significant potential
The company believes that there is significant potential for near term development at Devon. This is because of various factors like the fact that the drilling at Devon was mostly above 300m RL ie <100m below surface.
The company highlighted that the mineralisation at Devon occurs as high grade sulphide rich shears and quartz veins within a moderately dipping zone (Main lode zone) which remains highly prospective at depth. Matsa expressed confidence that the complex structural setting at Devon holds excellent potential for structural repetitions of the main lode zone and associated mineralised structures.
MAT noted that Devon is an active mine site on care and maintenance and the approvals process to recommence mining is expected to be straightforward.
The recent mining had occurred within a very small mining lease surrounded by a third party Mining Lease, which restricted development of the Devon Main Lode which dips towards the SW at a moderate angle of ~45 degrees.
The company said that all relevant leases are now owned 100% by Matsa and the project can now be evaluated without the restriction of tenement boundaries.
The company reported that further drilling is planned to better define high grade mineralisation in the Main Lode and the Hanging Wall lode. The company said that the next stage of drilling will be planned upon receipt of assays from 1m samples.
MAT said that a test IP survey is planned to confirm whether high-grade lodes can be detected by this technique.