PERTH (miningweekly.com) – Junior miner Matsa Resources has acquired an option over fellow-listed Anova Metal’s Devon tenements, south of the Red October gold mine, in Western Australia.
Under the option agreement, Matsa could elect to exercise the option by paying A$200 000 within an 18-month period to acquire the tenements, with Matsa also subscribing for 10-million Anova shares at a price of 2.25c each.
Matsa has also paid Anova A$150 000 for the Zelica project.
The Zelica agreements included a 1.5% net smelter return royalty on the first 25 000 t of gold-bearing ore produced, and a 1% net smelter royalty from the second 25 000 t of product from the Zelica tenements.
Zelica contains a Joint Ore Reserves Committee-compliant resource of 30 000 oz, and Anova has previously identified the potential of near-surface, high-grade zones within the main ore zone.
Matsa told shareholders that exploration on the tenements will start immediately in conjunction with surrounding tenements, where recent aeromagnetic surveys and aircore drilling have been completed.
The company added that the strategic acquisition complemented the overall strategy of Matsa of building a company of high quality gold potential in a contiguous land package, all within close proximity of the Red October gold mine.
Matsa in September started mining at Red Dog, and the project is currently estimated to host a mineral resource of some 26 300 oz.