Production begins at Matsa’s Fortitude gold operation

Activities at Fortitude. Image: Matsa Resources

Matsa Resources has launched mining at the Fortitude gold operation in Western Australia as part of an ongoing trial.

Quadrio Earthmoving was awarded a mining services contract at the site near Laverton in the Goldfields region last month. The contractor has mobilised at site and construction, including offices, workshops, removal of topsoil and sediment ponds, is now complete.

According to Matsa, the bore field has been commissioned and mine dewatering is under way.

“Topsoil has been removed and stockpiled from the north pit, offices, workshop and waste dump areas,” the company said in an ASX announcement.

“Grade control was completed and assays were received for the natural surface on all three trial pit areas.”

Matsa is trucking ore 35km north to AngloGold Ashanti’s Sunrise Dam gold mine under a purchase agreement for the trial mine’s production.

The company has forecast the trial mining operation to be economical at a $A1600 an ounce gold price. It expects to produce around 12,100 ounces at 2.2 grams per tonne, which would generate $5.2 million over eight months.

Matsa chairman Paul Poli said mining at Fortitude was Matsa’s first production activity.

“We expect that the revenue and cost projections released in the trial mining study in February 2017 should not have any material changes,” Poli said.

The company is mining the north pit on a single shift, but plans to launch double shifts on July 31.

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