Matsa gives green light to second 'Red' gold venture

JUNIOR company Matsa Resources has kicked off its second gold mining venture with work now underway at the Red October underground mine near AngloGold Ashanti’s Sunrise Dam and an initial cash surplus of about A$4 million expected.
Matsa gives green light to second 'Red' gold venture Matsa gives green light to second 'Red' gold venture Matsa gives green light to second 'Red' gold venture Matsa gives green light to second 'Red' gold venture Matsa gives green light to second 'Red' gold venture

Visible gold from Red October

Staff reporter

Matsa's studies envisage mining of 56,673t of ore grading 5.61 grams per tonne for 10,222 ounces during an initial seven-month mining operation.

However Matsa also contends the initial venture is the start of a "long-term mining operation", with multiple exploration targets and opportunities to extend the resource.

Current overall resources total 85,000oz in dirt grading about 13.6gt.

Meanwhile toll milling/ore sale discussions are now underway, with Matsa expecting them to be finalised prior to the mining of ore.

Matsa's previous mining venture at Red Dog saw ore sold for processing at Sunrise Dam.

Red Dog yielded 12,704oz and an operating profit to Matsa of about $5.5 million.

Shares in Matsa were unchanged in afternoon trade at 16c, capitalising the company at $28 million.