Plan to Restart Mining Update- Red October Gold Project

Key Takeaways

• Geological review by Pit N Portal highlights areas within the existing 85,000 oz @ 13.6 g/t underground resource model as potentially mineable
• High level mine planning and financial analysis of these areas is underway with initial results expected shortly
• New targets outside the known resource exist with further potential for near term mining identified
• Pit N Portal studies set to continue with successful first pass work resulting in
  • a framework to release a scoping study for mining
  • mine design and scheduling
  • financial models and budgets

Matsa Resources Limited (“Matsa” or “the Company” ASX: MAT) announced on 6th April 2018 that it had entered into a Memorandum of Understanding (“MOU”) with Pit N Portal Mining Services Pty Ltd (“PNP”) whereby PNP will undertake a two staged approach to conducting underground studies and development of mineral resources at the Red October gold project (MAT announcement to ASX 6th April 2018). The goal is for PNP to commence mining at the Red October Gold Mine for Matsa as soon as possible.

Stage 1 of the MOU was expected to be completed by 20th April. However, the preliminary results of the initial mining design and high level financial model is highly encouraging with a significant number of opportunities identified in the geological review. Matsa has decided to increase the scope of this first study to incorporate the new findings. Results of the expanded study are expected shortly.

Areas for near term underground mining have been identified based on confidence levels of the mineral resource, distance from existing infrastructure and exploration requirements.

An initial 15 areas within the existing 85,000 oz @ 13.6 g/t underground resource model (Table 1) have been identified as near term potential mining areas and are currently being investigated further for mine planning and financial analysis (Figure 1). Another 12, near mine areas outside the existing resource model have also been identified for further drilling as high priority drill targets.

In addition to areas within the resource model, 12 other areas have also been identified as having near mine potential and require further exploration and evaluation work (Figure 1). Subject to further positive Stage 1 results, Matsa intends to move into Stage 2 which will involve a more detailed continuation of the Stage 1 work, as well as obtaining all necessary permits and approvals, attending to tenders and contracts and the establishment of a mining reserve. The studies will also include mining plans and schedules. Matsa’s Executive Chairman Mr Paul Poli said “I am delighted that the initial geological review provides substantial encouragement to continue investigations towards mining in the near term. I continue to look forward to working with PNP over the coming months to commence mining at Red October.”

About Matsa Resources Ltd (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.

Request Information