Matsa’s Devon Feasibility Study Delivers A$60M Surplus, Paving the Way for Gold Production

Carol Forrest
exploration

Matsa Resources Limited (ASX:MAT) has announced the successful completion of its Feasibility Study (FS) for the Devon Pit Gold Mine, delivering a pre-tax cash flow surplus of A$59.8 million at a gold price of A$4,250 per ounce. The study confirms a robust financial outlook for the project, which is expected to commence production by late Q1 or early Q2 2025 under a planned profit-share arrangement (Matsa 80% / Contractor 20%).

Key Highlights:

  • Production Outlook: 340,000 tonnes at 4.6 g/t gold, producing 50,000 ounces of contained gold.
  • Strong Margins: Projected all-in costs of A$2,829/oz, with potential free cash flow increasing to A$73.4M at a gold price of A$4,550/oz.
  • Minimal Capex: Low upfront capital requirement of A$3 million, with key infrastructure such as haul roads and accommodation already in place.
  • Operational Readiness: The project is fully permitted and mine-ready, with mining, processing, and financing arrangements in the final stages.

Matsa’s Executive Chairman, Paul Poli, expressed confidence in the project’s potential:
"The Feasibility Study confirms Devon as a high-margin gold project. With the rising gold price and a mine-ready operation, this presents a compelling value opportunity for our shareholders. Devon’s projected returns are significantly higher than our current market capitalisation, reinforcing Matsa’s position as undervalued in the market."

The company is also conducting extensional drilling to the north of the Devon Pit, which could further enhance the mine’s resource base and increase gold production. Mining will commence with a 100-tonne excavator and 85-tonne rigid haul trucks, scaling up operations as production ramps up.

Matsa is in advanced discussions to secure third-party processing arrangements, either through a toll-treatment agreement or an ore purchase contract. A financing facility of up to A$15 million is also being negotiated to support the early stages of development.

With a high-grade resource of 488,000 tonnes at 5.2 g/t for 82,000 ounces of gold, the Devon Pit Gold Mine is set to become a key contributor to Matsa’s Lake Carey Gold Project.