Matsa Resources has commenced mining operations at its 100 per cent-owned Red Dog gold project in the Goldfields region of Western Australia.
The project is located near two other Matsa mines, Fortitude and Red October, which are around 25km to the east and 16km to the northeast of the Red Dog site respectively.
A JORC 2012 compliant maiden resource of 368,000t at 2.2g/t for 26,300oz of gold (94 per cent indicated) was confirmed in January this year.
Red Dog is a shallow gold-bearing deposit, starting just two metres from the surface. Ore from Red Dog will be delivered to AngloGold Ashanti’s Sunrise Dam for processing thanks to an existing purchase agreement between the two companies.
AngloGold Ashanti and Matsa compounded on a two-year working relationship at the Fortitude deposit — which began operations last year — by signing a non-binding memorandum of understanding (MOU) in June that covered Matsa’s entire range of projects.
The MOU gives AngloGold Ashanti first option and saw both companies agree to share non-confidential technical data and infrastructure such as airports and roads.