Matsa Resources Limited (ASX:MAT) has completed mining operations at the Red Dog Gold Project in WA’s Eastern Goldfields, delivering 12,704 ounces.
A number of key outcomes exceeded the targets set in the company’s July 2018 mine study, including the cash surplus of $5.5 million.
There were 183,730 tonnes of ore processed, which was above the target of 182,000 tonnes, while the waste to ore strip ratio was 1:7 compared to the targeted 2:4.
“A result that met expectations”
Matsa Resources chairman Paul Poli said: “I am delighted that mining at the Red Dog project produced a result that met expectations, producing an operating profit of $5.5 million despite highly unusual and unexpected weather delays.
“By working closely with our contractors and continuing our good relationship with AngloGold Ashanti Australia, our team at Matsa achieved this excellent outcome.”
Another improved result was achieved with all-in sustaining costs (AISC) of $1,288, just below the targeted $1,294 while the surplus was $100,000 above budget.
As a result, the company’s board has determined to pay a maiden dividend to shareholders of 1 cent for every 5 shares held.
Poli said: “This dividend demonstrates Matsa’s ability to deliver on its mining strategy and helps distinguish the company amongst its peer group of junior gold companies.”
Matsa aims to continue its strategy of mining gold deposits in the region, having identified two more potential small-scale operations within the Lake Carey project area, which could be brought into production this year.
Work has begun with planning and preparing mine plans, which will be lodged with relevant authorities on completion.
- Jessica Cummins