Join our daily newsletter At The Bell to receive exclusive market insights
- Matsa Resources (MAT) identifies a site for a new processing plant to service its Lake Carey Gold Project in Western Australia
- Following a concept study, MAT found owning and operating a treatment plant would positively impact the financial results of its mining opportunities
- Now the proposed plant is set to be constructed at the Fortitude Gold Mine, with construction permitting underway
- A key criteria of the permitting is how tailings will be disposed of, to which MAT plans to organise within the Fortitude waste dump
- Shares closed the day 1.64 per cent higher at 6.2 cents
Matsa Resources (MAT) has identified a site for a new processing plant to service its Lake Carey Gold Project in Western Australia.
The company completed a concept study in January that found owning and operating a treatment plant would significantly and positively impact the financial results of its mining opportunities.
Now, the proposed 600,000 tonnes per annum processing plant is set to be constructed at the Fortitude Gold Mine.
MAT said that while exploration, resource modelling and mine design works were still in progress, it believes that sufficient ore stocks to support a new processing plant will be realised in the near future.
In particular, the Fortitude trend within the project area is said to be shaping up to provide most of the ore feed, and mining studies will provide the information needed to support a business case for a the plant.
With the site identified, the company is now working to lodge and obtain the permitting required for construction.
A key component of the permitting is the way tailings will be managed and disposed of.
MAT notes the preferred approach to this is to organise for disposal within the Fortitude waste dump.
Precedents using this approach reportedly exist in the WA goldfields, which MAT hopes will expedite the permitting process and should be considered cost effective and environmentally responsible.
Moreover, the location of the proposed facility could enable servicing of Matsa’s other projects which are within 20 kilometres and could open the company up to opportunities from third party satellite deposits needing access to a closer processing plant.
Executive Chairman Paul Poli said a mill in this location just makes sense.
“Over the coming months we’ll be advancing the relevant works to obtain the necessary permitting for this cornerstone component of recommencing gold production.”
Shares closed the day 1.64 per cent higher at 6.2 cents.
