Matsa Resources (ASX:MAT) has received the results of a Feasibility Study for the Devon Pit Gold Mine in the Laverton region of Western Australia, which reveals the potential of an 18-month operation.
The study also revealed the project has potential to generate positive cashflows of $59.8 million using a gold sale price of $4,250 per ounce and up to $73.4 million using the current gold spot price of $4,550 per ounce.
According to the study, the Devon Pit will produce 340,000 tonnes @ 4.6 grams per tonne gold for 50,000 ounces, including 4,000 ounces of inferred resource, at an all-in sustaining cost of $2,829 per ounce.
Executive Chairman Paul Poli says at today’s gold price, the project returns twice as much as the current market value.
“We have always been confident the shallow, high-grade nature of the deposit provides a sound foundation to achieving strong returns and the rising gold price environment provides a compelling case for the company to get this project into production as soon as possible,” Poli says.
Matsa, which has a market capitalisation of $38 million, says the Devon Pit is expected to go into production between late Q1 and early Q2 2025, under an anticipated profit share arrangement between Matsa and a mining contractor.
The company notes the project is fully permitted and mine ready, with a low capex of $3 million expected. All major infrastructure, including haul roads and accommodation, are in place.
Further, mining, processing, and funding arrangements are near completion.
Once all key contracts have been signed, the company intends to begin site preparations.
The Devon Pit Gold Mine lies within the broader Lake Carey Gold Project which covers 449km2 within the Laverton tectonic zone in Western Australia.
Matsa Resources is a gold explorer and miner that operates south of Laverton in the northeastern Goldfields region of Western Australia. The company also has a landholding in Thailand, which is considered prospective for lithium and base metals.
Write to Aaliyah Rogan at Mining.com.au
Images: Matsa Resources
