AngloGold Ashanti Australia (AGAA) has signed an ore purchase agreement to buy and treat all the ore excavated from Matsa Resources’ Trial Mine at the Fortitude gold project in Western Australia.
A revenue stream for trial mining at the site has been locked in as part of Matsa’s Trial Mining Study in the region.
Under the terms of the agreement, the iron ore will be treated at the AGAA-owned Sunrise Dam Gold Mine and allows Matsa to progress with trial mining at a relatively low capital cost.
The Sunrise Dam Gold Mine attends to 3.8 million tonnes of ore per year and is located around 35km from the Fortitude gold project.
As part of the deal, Matsa will also be responsible for the transportation of the ore it mines.
“The execution of the agreement with such a reliable and successful company as AngloGold Ashanti is a tremendous result,” said Paul Poli, Matsa’s executive chairman.
“This agreement now removes the final hurdle for trial mining to commence at Fortitude.
“We look forward to working with AngloGold Ashanti during the term of this agreement and hopefully beyond to a larger mine plan in the future.”