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Matsa Resources signs ore purchase agreement with AngloGold Ashanti

The trial mine is expected to generate a cash surplus of $5.2 million.
Matsa Resources signs ore purchase agreement with AngloGold Ashanti
The agreement removes the final hurdle to commence trial mining

Matsa Resources (ASX:MAT) has executed an ore purchase agreement with AngloGold Ashanti Australia to sell of all of the ore from the trial mine at Matsa’s Fortitude Gold Project.

The ore will be treated at AngloGold’s Sunrise Dam Gold Mine.

AngloGold’s 3.8 million tonne per annum mill is located circa 35 kilometres from Fortitude and provides Matsa with access to a nearby milling solution for its ore, potentially for the long term.

Matsa will be responsible for mining and transporting the ore and AngloGold will be responsible for milling the ore.

The execution of the agreement will allow Matsa to immediately progress to trial mining at the Fortitude Gold Project at a relatively low capital cost.

A study earlier this year showed that a trial mine is economically viable with a potential cash surplus of $5.2 million over a period of 12 months, at a gold price of A$1600.

Matsa is expected to produce 12,100 ounces of gold at an all-in sustaining cost of $1140 per ounce with a capital investment of only $1.2 million.

The total probable ore reserve for the Fortitude trial mining study was 185,000 tonnes at 2.2 g/t, containing 12,900 ounces of gold.

Matsa’s share price increased 33% over the past three months, last trading at $0.28.

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Matsa Resources Ltd Timeline

Newswire
September 25 2017

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