Matsa Expresses Intention to Commence Mining at Red October Gold Mine

KEY TAKEAWAYS:

• Matsa Resources has expressed an interest in commencing mining activity at Red October Gold Mine and for the purpose, it has signed an MOU with a service provider named Pit N Portal on 6 April 2018.
• Among the two stages, the first stage would be dedicated to scrutinizing the region and in order to acquire a more in-depth report, Matsa has extended the deadline for completion beyond 20 April.
• Based on the findings of the stage 1 results, Matsa would then move on to the second stage wherein the focus would be on acquiring permits and approvals and preparing tenders and contractual agreements.

Australian-based Matsa Resources Limited (ASX: MAT) has expressed its intention to commence mining activity at the prospective Red October Gold Mine at the earliest. To this effect, the company signed an MOU (Memorandum of Understanding) with a service provider in the mining sector, namely Pit N Portal, on 6 April 2018.

As per the MOU, PNP will be responsible for subjecting the entire area to a thorough scrutiny as regards the presence of mineral resources in the region. During the first stage of this 2-stage plan which was to be completed by 20 April, the main objective was to identify opportunities and outline an initial design of the mining activity. Given the vast scope, Matsa has extended this deadline to facilitate the investigation of additional 12 areas apart from the initial 15.

When Matsa initially undertook the project, it was with an eye on the 15 initial mining areas wherein the objective was to determine the commercial viability of Red October. Because the assessments, both technical as also economic, were based on low-level methods, there was no accuracy in estimating the presence of ores in the region. Matsa took a stand that further
exploration was required followed by accurate evaluation before an accurate estimation of reserves was made and its economic viability judged.

Subsequent to having acquired the stage 1 results, Matsa will move on to the second stage wherein it will attain the necessary permits and relevant approvals. It will also begin to prepare tenders and contractual agreements as also outline mining plans and schedules in order to ensure that work progresses at a fast pace.

About Matsa Resources Limited (ASX: MAT)

Matsa is an ASX listed explorer/developer who has become a gold producer following the acquisition and development of the Fortitude gold mine. Fortitude forms part of the Lake Carey gold project south of Laverton. Matsa has a pipeline of quality projects within Australia and central Thailand. Matsa has recently acquired the Red October Gold mine near Lake Carey which boosts the mining potential within the area.

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