- Matsa Resources has secured a five-year purchase agreement deal, to sell gold ore from its Red October mine to AngloGold Ashanti Australia
- Gold ore will be processed at AngloGold’s wholly owned Sunrise Dam project
- Red October was revealed to hold extremely high grade gold earlier this month, including 248 g/t, 181.5 g/t, 40.51 g/t and 36.9 g/t among others
Matsa Resources has secured a five-year gold sales deal with AngloGold Ashanti Australia. AngloGold will be purchasing gold ore directly from Matsa’s Red October mine, situated in WA’s Laverton Greestone Belt.
Purchased ore will be processed by AngloGold at its wholly owned Sunrise Dam project site.
Matsa Executive Chairman Paul Poli says the agreement builds on previous successful gold processing at Sunrise Dam, from Matsa’s Fortitude and Red Dog projects.
“The fact that AngloGold are prepared to potentially accept all ore from Red October for up to 5 years is testament to this as Matsa looks to develop a longer term mine plan in the future,” he said.
Earlier this month, Matsa reported extremely high gold grades from Red October, including readings of 248 g/t, 181.5 g/t, 40.51 g/t and 36.9 g/t among others, making the project highly valuable.
Specific details of the agreement between the two companies remains confidential at this point. Matsa Resources assert the costs and revenues of the purchase agreement is ‘entirely consistent’ with fiscal targets.
The first delivery to Sunrise Dam will happen by the end of June this year.
The company’s wholly owned Red October project covers 44 squared kilometres over six mining leases. The project site also has an underground mine and a 68-person camp.
Matsa Resources’ shares skipped 3.70 per cent in the market today. Shares are currently trading at 14 cents a piece in a $23.88 million company market cap.