Mining begins at Red Dog

MATSA Resources says blast hole drilling is underway ahead of the first blast planned for this week at its short-term Red Dog gold mine in Western Australia’s Goldfields.
Mining begins at Red Dog Mining begins at Red Dog Mining begins at Red Dog Mining begins at Red Dog Mining begins at Red Dog

Matsa executive chairman Paul Poli on site

Staff reporter

All the ore will be treated at AngloGold Ashanti's Sunrise Dam gold mine under an ore purchase agreement.

Matsa expects to produce 13,400 ounces from Red Dog at an all-in sustaining cost of A$1294/oz and generate a cash surplus of $5.4 million over three months.

The shallow Red Dog deposit comprises 368,000 tonnes at 2.2gpt gold for 26,300oz, according to a maiden resource announced in January.

It lies within 25km of Matsa's Fortitude mine infrastructure and the Red October camp.

The company has said it was assessing the economic viability of both full scale open pit mining at Fortitude, which saw trial mining earlier this year, and re-opening Red October.

Matsa had about A$8 million in cash and liquid investments at the end of June.

Matsa shares were unchanged this morning at 14c, capitalising it around $24.77 million.