PERTH (miningweekly.com) – ASX-listed Matsa Resources has started mining at it Red October gold project, in Western Australia, with first ore expected in April.
The mining operation is expected to generate some A$16-million in revenue and deliver Matsa a cash surplus of more than A$4-million.
The junior said on Monday that all the necessary approvals are already in place, with toll milling and ore purchase agreements currently being negotiated.
Detailed mining studies have estimated that some 56 673 t of ore, at a grade of 5.61 g/t gold for 10 222 oz, could be produced at Red October over an initial seven-month mining operation.
“I am delighted with the work done in getting the Red October gold mine to the point where we can announce mining and production in early 2019 subject to a suitable toll milling/ore purchase agreement being finalised,” said Matsa executive chairperson Paul Poli.
“Although planning indicates initial production over a seven-month period, I am very confident ongoing exploration and increased knowledge will see production go beyond that timeframe.”
The Red October resource remains open in all directions, and the deposit is largely considered to be unexplored along strike and down dip, and a number of new underground exploration targets have been identified within the existing datasets, the company said.