Name of the Project
Fortitude gold mine – Stage 2.

Location
The project is located within the Lake Carey gold project, in the Eastern Goldfields of Western Australia.

Project Owner/s
Matsa Resources.

Project Description
A mining study has reported highly positive results for the project and that under current market conditions, Fortitude can be economically mined.

Fortitude has total indicated and inferred mineral resources of 5.45-million tonnes grading 2 g/t gold.

Maiden ore reserves have been declared at 1.03-million tonnes at 1.8 g/t gold, with potential for a substantial increase of gold ore reserves in the near term.

It is estimated that about 54 400 oz of gold could be recovered over a 22-month period.

The study envisages a conventional openpit operation involving 120 t backhoe excavators and 90 t trucks.

The ore will be processed at one of three nearby ore-treatment facilities.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The total cost of the Stage 2 mining operation to Matsa is A$95.3-million and comprises: startup costs of A$6.6-million, including A$5.1-million for prestripping, mining and haulage costs of A$43.1-million, and processing costs of A$45.6-million.

Planned Start/End Date
Not stated.

Latest Developments
All statutory and regulatory approvals are in place for mining to start immediately.

Based on the positive outcomes of the Stage 2 mining study, Matsa plans to immediately progress with plans to put the mining contract out to tender, finalise ore purchase and treatment options, and secure project financing to facilitate the start of the Stage 2 operations.

Matsa has initiated discussions with AngloGold Ashanti with respect to an ore purchase arrangement for the Stage 2 operations.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Matsa Resources, tel +61 8 9230 3555 or email reception@matsa.com.au.