Matsa Resources Ltd reports the results of a mining study at its Red Dog gold deposit. The study shows that the mine will produce a cash surplus of A$5.4 million over a period of three months which includes all mining and haulage of gold ore to AngloGold Ashanti Australia Ltd’s (AGAA) Sunrise Dam Gold Mine (SDGM) treatment facilities.

The board of Matsa has decided to commence mining at the Red Dog gold deposit as soon as possible.

The capital and operational cash requirements of the mine can be funded by Matsa’s existing cash reserves without the need to raise any additional capital.

Mining activities are to commence early August and to be completed within 16 weeks. Mining study parameters for the Red Dog gold mine are:
o All in sustainable cash cost (AISC) of A$1,294/oz gold
o Cash surplus A$5.4 million after all operating costs
o Total production 182,000 t @ 2.5g/t Au (13,400 recovered oz gold)
o Total material movement 0.6 Mt at a strip ratio of 2.4:1
o AngloGold Ashanti to buy all ore produced through an ore purchase agreement with ore treated at SDGM

All statutory and regulatory approvals are in place, and contracts for mining and haulage are being finalised.

Red Dog is 100% owned by Matsa Resources and located in Western Australia just north of Mount Celia Road and west of the Saracen Haul Rd near Mt Howe Well, approximately 25 km west of Matsa’s Fortitude gold mine, 7 km west of Second Fortune gold mine and 10 km south of Butchers Well gold deposit. The tenement package comprises three mining licences and associated Miscellaneous Licences.