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Highlights
- Feasibility study indicates robust financial outlook for Devon Pit Gold Mine
- Production expected between late Q1 and early Q2 2025 under a profit-sharing model
- Project is fully permitted with key infrastructure in place for rapid commencement
Matsa Resources (ASX:MAT) has released the results of a Feasibility Study for the Devon Pit Gold Mine, located in the Laverton region of Western Australia. The findings highlight the project's strong financial potential, with an 18-month operational window that could yield substantial cashflows.
The study outlines an anticipated cashflow of $59.8 million based on a gold price of $4,250 per ounce, with potential growth to $73.4 million at the current gold spot price of $4,550 per ounce. The Devon Pit is expected to produce approximately 340,000 tonnes of ore at an average grade of 4.6 grams per tonne, translating to 50,000 ounces of gold. This includes 4,000 ounces classified as inferred resources. Operational costs are projected at an all-in sustaining cost (AISC) of $2,829 per ounce, positioning the project competitively within the current market.
Executive Chairman Paul Poli emphasized the strength of the operation, noting that at prevailing gold prices, the project has the potential to generate returns significantly higher than Matsa Resources' current market valuation of $38 million. He highlighted the high-grade nature of the deposit and the favorable pricing environment as key drivers for the project’s viability.
Production at Devon Pit is targeted to commence between late Q1 and early Q2 2025. The project is being developed under an anticipated profit-share agreement between Matsa Resources and a mining contractor, further optimizing capital efficiency. Notably, the mine is fully permitted and requires minimal capital expenditure, with an estimated cost of just $3 million to bring it into operation.
Essential infrastructure, including haul roads and accommodation, is already in place, facilitating a smooth transition from development to production. Meanwhile, mining, processing, and funding agreements are in advanced stages, with final contracts expected to be signed soon. Once all agreements are in place, site preparations will begin, setting the stage for the commencement of mining activities.
The Devon Pit Gold Mine is part of Matsa Resources’ broader Lake Carey Gold Project, which spans 449 square kilometers within the Laverton Tectonic Zone. The company also holds assets in Thailand that are considered prospective for lithium and base metals, further diversifying its resource portfolio.
With all key elements aligning for a timely production start, Matsa Resources is positioning itself for significant near-term growth, leveraging the robust outlook for gold prices and strong project economics.
