Name of the Project
Devon Pit gold project.

Location
South of Laverton, in the north-eastern goldfields of Western Australia.

Project Owner/s
Devon Joint Venture (JV), a collaboration between Matsa (50%) and Linden Gold Alliance (50%).

Under the terms of the JV, Matsa is free carried on a nonrecourse basis for all costs associated with permitting, financing, development and mining of the Devon pit, with Linden required to meet certain milestones.

Project Description
A definitive feasibility study (DFS) on the restart of the Devon pit, completed in September 2023, has shown robust and technical results.

The DFS envisages a 260 000 t operation grading 4.6 g/t gold for about 38 370 oz of recovered gold.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an internal rate of return of 387%. Payback is estimated at 14 months.

Capital Expenditure
Life-of-mine capital expenditure is estimated at $8.1-million.

Planned Start/End Date
A final investment decision is expected in late 2023.

Latest Developments
Matsa has signed a binding mining services agreement with Blue Cap Mining (BCM) for the development of the Devon Pit gold mine.

The agreement outlines a profit-sharing model in which BCM will manage and operate the Devon mine on an open-book cost basis. BCM’s return will be determined through a 20% profit share arrangement with Matsa. In addition, BCM’s private equity division, Blue Capital Equities (BCE), will provide up to A$6-million in working capital for the project.

Under the terms of the agreement, BCM will be responsible for the provision of mining equipment, personnel, and operational management. The mining services contractor will also defer 50% of its progressive service fees, up to a maximum of A$6-million, as part of its funding contribution. Once the project achieves positive cash flow, BCM will receive repayment of the deferred fees before sharing profits on an 80:20 basis with Matsa.

Matsa executive chairperson Paul Poli said the company is pleased to partner with BCM, highlighting its experience in openpit mining operations and its willingness to co-invest in the project.

With the agreement now in place, Matsa and BCM will start preliminary site works, geotechnical and infill drilling, and dewatering activities in preparation for full-scale mining operations.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Matsa Resources, tel +61 8 9230 3555 or email reception@matsa.com.au.