Matsa Resources Ltd · ASX:MAT
Matsa Resources — RIU Resources Roundup Sydney 2021
27 slides from Matsa Resources's conference presentation, May 4, 2021
Slide 1: RIU Resources Roundup Sydney 4 May 2021
RIU Resources Roundup Sydney 4 May 2021 Paul Poli
Slide 2: Disclaimer and Forward Looking Statements
Disclaimer and Forward Looking Statements This presentation has been prepared by Matsa Resources Limited (“Matsa” or the Any potential investor should refer to publicly available reports on the ASX website and “Company”). It should not be considered as an offer or invitation or inducement to seek in
Slide 3: Who is Matsa?
Who is Matsa? Matsa is a Developer with Huge Exploration Potential Easily said, so let me explain Matsa has: • Put together a formidable land package • Developed and mined the Fortitude Trial mine and from that, completed a 2 year fully permitted Stage 2 future operation study with a $55.4M positive
Slide 4: What has Matsa got?
What has Matsa got? SIGNIFICANT RESOURCE AND GROWING 8MT @ 2.6g/t for 654,000oz in Mineral Resource and growing, with upgrades expected at Red October following 2020 drilling and numerous unmodelled satellites at Fortitude and Devon *CASHFLOW POTENTIAL OF +A$90M OVER a 36mth PERIOD Positive economic
Slide 5: 654,000 ounces Gold in Resource and Growing
654,000 ounces Gold in Resource and Growing Significant Resource Growth to be delivered in 2021/22 • 48% increase since 2020 Annual Report • Underpinned by Red October, Fortitude and Devon at healthy grades • Updating Red October • Bindah, Fortitude North and other area updates to follow Cutoff Meas
Slide 6: Matsa's Exploration Targets
Matsa’s Exploration Targets* EXPLORATION TARGETS* Lower Case Target Upper Case Target EXPLORATION TARGET Tonnes Grade Ounces Gold Tonnes Grade Ounces Gold Red October 900,000 6.9 200,000 1,740,000 6.1 340,000 Devon 1,040,000 3.0 100,000 2,600,000 3.0 250,000 Olympic 180,000 4 20,000 560,000 6 110,00
Slide 7: Exploration and Development Pipeline
Exploration and Development Pipeline • 503km2 high quality historically under explored tenement package • Significant pipeline of 30 exploration projects • Favourable structural settings along major faults • Salt lakes have seen little previous exploration • Matsa’s new discoveries include BE 1, BE
Slide 8: Regional setting and hubs
Regional setting and hubs Hubs: Red October (red) Fortitude (yellow) Lake Carey North (pink) Devon (blue) Lake Carey South (orange) Lake Carey Central (green) MA TSA RESOURCES Sy d ney RIU Reso urces Ro und up 4 May 20 21 8
Slide 9: We want our share price to reflect our success
Matsa Resources Limited Company wants – • Profitable, safe production, growth • Leading environmental and social practices Investor wants – • Company to deliver on strategy • ROI (share price to go up & dividends) • Operate in an environmentally and socially responsible way (ESG) We want our share p
Slide 10: A New Way with a New Strategy
A New Way with a New Strategy • Develop a profitable business • Build Matsa owned 600,000tpa plant • Mine Fortitude Stage 2 and Devon Pit • Drillout Red October then resume mining it • Develop Olympic, Hill East and Gallant • Explore Devon hub and Fortitude North • Find new gold Resources to give tr
Slide 11: Matsa Can do attitude
Matsa Can do attitude Address Cashflow • Select options to generate short term cash • Do deals - we have proven ability • Wind down mining operations at Red October Execute 2yr Exploration Plan • Explore and grow resources • Complete mining studies and establish reserves • Develop sustainable, profi
Slide 12: A Mill is the Key to Long Term Value
A Mill is the Key to Long Term Value Fortitude Hill East Stage 21 Gallant3 prospects4 Olympic & Devon UG4 Bindah3 Devon pit3 Fortitude Nth4 Proposed Red Matsa October2 Processing 3rd Plant party ores Strategic pathway to production * Aggressive exploration planned for resource growth, 1 – mining stu
Slide 13: The Way Forward – Fortitude
The Way Forward – Fortitude Resource • 366,000 oz • UG resource extension remains open • Gallant and Bindah OP resources to be evaluated for mining Status • Fully permitted and costed mine on granted ML • Matsa trial mine provides performance data for Stage 2 • Satellite deposits to be economically
Slide 14: The Way Forward – Devon
The Way Forward – Devon Resource • 115,000 oz • Numerous satellite mineral systems yet to be modelled • Upcoming drilling Status • Opportunity to generate early cashflow at strong margin • Scoping study demonstrates +$40M operating return • Progressing studies to obtain approvals to mine Opportunity
Slide 15: The Way Forward – Red October
The Way Forward – Red October Resource • 173,000 oz • Updating Lion Fish, Marlin and Nemo models • Exploration and resource drill out designed Status • Designs underway for Long Term Mine Plan • Currently ore is trucked to SDGM under Ore purchase • Haulage and processing cost too high Opportunity •
Slide 16: Matsa Can do attitude
Matsa Can do attitude The components of production success through a Matsa treatment facility is having access to 3M tonnes of ore over 5 years; • Devon Pit in hand • Fortitude Stage 2 in hand • Red October in hand • Olympic • Low grade stockpiles in hand • Hill East in hand • Gallant • Fortitude No
Slide 17: Red October Gold Mine
Red October Gold Mine • 173,000oz @ 5.8 g/t Au • Red October is a high-grade structurally controlled narrow vein gold deposit with significant exploration potential • Matsa’s Mar 2021 quarter production of 1,987 oz gold at C1 cash costs of A$1,222 oz and AISC A$2,150 oz sets a good scene proves prof
Slide 18: Red October – why wind down?
Red October – why wind down? • Focus on building reserves to plan sustainable long term mine life • Future potentially comprises multiple new mining fronts that requires new mine infrastructure • Business need to understand “the whole” • Matching future production rates to processing throughput base
Slide 19: Red October Gold Mine is an asset
Red October Gold Mine is an asset • Why 18 months and approx. $8,000,000 • 173,000 oz gold in resource previously 85,000 oz • Profitable months occurred previously economics were unknown • Excellent understanding of met recoveries, previously little reliable knowledge due to blending • Exploration i
Slide 20: Red October Gold Mine – Matsa now has the blueprint
Red October Gold Mine Matsa now has the blueprint This now means that Red October can be advanced with confidence through specific 2 year exploration and grade control drillout which has been fully costed to develop a long term mine plan which will deliver high margin ore to a own Matsa owned plant
Slide 21: Fortitude Stage 2 – fully permitted
Fortitude Stage 2 – fully permitted • Cash surplus of A$55.4M* at A$2,500/oz • Expected 22-month mine life Month Surplus and Cash Flow • Fully permitted and ready to go $12,000,000 $60,000,000 • Previous trial mine provides high level of $10,000,000 $50,000,000 confidence • Production of 54,400 oz g
Slide 22: Devon Pit – rapidly advancing
Devon Pit – rapidly advancing • Cash surplus of A$40.75M* at A$2,250/oz • Expected 12-month mine life • Granted mining lease • Previous GME mine provides high level of confidence • Production of 36,737 oz gold at 93% recovery with potential to increase • Early access to ore • Existing haul roads and
Slide 23: Devon Hub Exploration
Devon Hub Exploration • 115koz resource across 3 prospects • Fantastic widespread gold in soil anomalism • Limited drilling into fresh rock • 38 Structural targets identified in SAM survey • 3 high priority targets for drill testing in May • LIN1 (Au+Te+As+TFEM anomalism) • HE1-HE2 (SAM anomaly+know
Slide 24: LIN 1 - Newly Discovered Target
LIN 1- Newly Discovered Target • Drilling this week • LIN1 – A strong 1.1km coincident Au, As, Te, TFEM anomaly • Limited historical drilling with healthy grades (1m @ 4.35g/t and 1m @ 3.04g/t) Drilled in wrong direction! As Te TFEM (SAM) MA TSA RESOURCES Sy d ney RIU Reso urces Ro und up 4 May 20 2
Slide 25: Corporate Overview
Corporate Overview CORPORA TE SNA PSHOT TICKER SHARES ON ISSUE UNLISTED OPTIONS LISTED OPTIONS MARKET CAPITALISATION CASH AND LIQUIDS ASX:MAT 313.76 77.48M 28.12M A$23.53M A$4.52M @ $0.17 - $0.35 @ $0.17 @ $0.075 (30 Apr 2021) (31 Mar 2021) KEY SHA REHOLDERS DIRECTORS ( A S A T 30 A p ril 20 21) Pau
Slide 26: A Strong Future is Forming
What is Matsa A Strong Future is Forming Matsa is developing a highly attractive model for our own 600,000tpa gold ore treatment facility starting with Devon pit and then Fortitude Stage 2. Combined plans shows $95,000,000* positive cash flow from only the first 2 pits capable of completion within a
Slide 27: Contact
CONTACT Paul Poli Executive Chairman Suite 11, 139 Newcastle Street Perth, Western Australia 6000 +61 8 9230 3555 reception@matsa.com.au MA TSA RESOURCES Sy d ney RIU Reso urces Ro und up 4 May 20 21 27