Photo by: Matsa
Name of the Project
Devon gold project (DGP).
Location
South of Laverton, in the north-eastern goldfields of Western Australia.
Project Owner/s
Devon Joint Venture (JV), a collaboration between Matsa (50%) and Linden Gold Alliance (50%).
Under the terms of the JV, Matsa is free carried on a nonrecourse basis for all costs associated with permitting, financing, development and mining of the Devon pit, with Linden required to meet certain milestones.
Project Description
A definitive feasibility study (DFS) on the restart of the Devon pit, completed in September 2023, has shown robust and technical results.
The DFS envisages a 260 000 t operation grading 4.6 g/t gold for about 38 370 oz of recovered gold.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has an internal rate of return of 387%. Payback is estimated at 14 months.
Capital Expenditure
Capital expenditure is estimated at $8.1-million.
Planned Start/End Date
A final investment decision is expected in late 2023.
Latest Developments
Matsa Resources has urged its shareholders to disregard the September 6 definitive feasibility study (DFS) released by its partner Linden Gold, saying that it had not approved or authorised the outcomes or the public disclosure of the study.
Linden said the DFS mine design contemplates a large openpit cutback to the existing Devon pit, which was last mined in 2016. Dewatering of the existing pit is required before mining starts, with an estimated timeline of 68 days to complete.
While Linden is positive about the study results, Matsa has said that the initial reviews of the study by its technical advisers have raised several concerns regarding the study.
Matsa has said that it will request further information or clarification from Linden regarding the basis of certain assumptions in the study, and has written to its JV partner requesting that the release of the DFS study results be withdrawn until the company has time to approve the study.
In the interim, Matsa is considering its options with as there was no third-party review.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Matsa Resources, tel +61 8 9230 3555 or email reception@matsa.com.au.