Matsa Resources Ltd · ASX:MAT
Matsa Resources — Investor Presentation (June 2021)
26 slides from Matsa Resources's investor presentation, June 2021
Slide 1: Becoming a Gold Producer
Becoming a Gold Producer ASX : MAT matsa.com.au Pascal Blampain | June 2021 Corporate Presentation
Slide 2: Disclaimer and Forward Looking Statements
Disclaimer Disclaimer and Forward Looking Statements This presentation has been prepared by Matsa Resources Limited (“Matsa” or the “Company”). It should not be considered as an offer or invitation or inducement to subscribe for or the purchase of any securities in the Company. This presentation may
Slide 3: Corporate Overview
Corporate Overview CORPORATE 315.96M 94.6M at $0.17 – 0.35 A$24.33M at $0.077 17/06/21 A$4.52M SNAPSHOT SHARES ON ISSUE OPTIONS MARKET CAPITALISATION CASH & LIQUIDS MAT: TWELVE MONTH SHAREPRICE Source: ASX 17 June 2021 KEY SHAREHOLDERS as at 17/6/21 DIRECTORS JP Morgan Nominees 15.51% Paul Poli Exec
Slide 4: New Strategy – building gold inventory, a new plant and shareholder value
New Strategy – building gold inventory, a new plant and shareholder value • Mineral Resources of 694,000oz* • 503km2 target rich tenement package in Western Australia • Three mines - Fortitude Stage 2, Devon Pit and Red October • Bindah and other potential mines rapidly advancing • Excellent explora
Slide 5: Lake Carey
Lake Carey Sunrise Dam Laverton Wallaby Granny Smith Kerringal Red October Fortitude Butchers Well Red October Village Devon Pit Gallant Bindah 5 Corporate Presentation
Slide 6: Lake Carey – 694,000oz gold resource
Lake Carey – 694,000oz gold resource Measured Indicated Inferred Total Resource Project Cutoff g/t Au (‘000t) g/t Au (‘000t) g/t Au (‘000t) g/t Au (‘000t) g/t Au (‘000 oz) Red October Red October UG 2.0 71 8.8 445 5.0 416 6.1 932 5.8 173 Red October Subtotal 71 8.8 445 5.0 416 6.1 932 5.8 173 Devon
Slide 7: Lake Carey – delivering growth
Lake Carey – delivering growth Mineral Resources up 57% in nine months and growing! +58,000oz +40,000oz 694,000oz Bindah (40koz) Gallant (23koz) +80,000oz Hill East (35koz) Olympic (15koz) +74,000oz Devon (65koz) Red October Exploration 441,600oz 99koz→173koz Target* Total Mineral 666 – 1,333koz Au
Slide 8: 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 9: Matsa's Focus – our own mill
Matsa’s Focus – our own mill Third Party Fortitude Olympic & Hill East Ore Stage 21 Prospects 4 Devon UG4 Devon pit3 Third Party Proposed Matsa Processing Plant Red October2 Processing Plant Fortitude North Strategic pathway to long term production • Underpinned by Fortitude Stage 2 and Devon mines
Slide 10: Matsa owned and operated 600ktpa plant is the pathway to shareholder value
Matsa owned and operated 600ktpa plant is the pathway to shareholder value • Study shows a 100% owned plant significantly and positively impacts Matsa Key Features Plant Cost ~ A$42.5M Granted mining leases Other Costs ~ A$16.3M Ore Processing Costs ~A$32.50/t 694,000 oz gold resource • Fortitude St
Slide 11: Fortitude Stage 2 delivers A$55.4M
Fortitude Stage 2 delivers A$55.4M • Cash surplus of A$55.4M* at A$2,500/oz • Expected 22-month mine life Month Surplus and Cash Flow • Fully permitted and development ready $12,000,000 $60,000,000 • Previous trial mine provides high level of confidence $10,000,000 $50,000,000 • Production of 54,400
Slide 12: Devon Open Pit delivers A$40.75M
Devon Open Pit delivers A$40.75M Month Surplus and Cash Flow $8,000,000 • Cash surplus of A$40.75M* at A$2,250/oz $7,000,000 $40,000,000 • Expected 12-month mine life $6,000,000 $5,000,000 $30,000,000 • Granted mining lease PROJECT CASH FLOW • Previous GME operated mine provides high level of MONTH
Slide 13: Bindah – newest Mineral Resource Estimate
Bindah – newest Mineral Resource Estimate • Bindah is located 2km south of Fortitude Mine • New Mineral Resource of 526kt @ 2.4g/t Au for 40,000oz Au • Further exploration potential remains along strike to the northwest and downdip • Single lode of mineralisation with relatively consistent strike ex
Slide 14: Red October Gold Mine
Red October Gold Mine • Existing Mineral Resource 932,000t @ 5.8 g/t Au for 173,000oz Au1 • Red October is a high-grade structurally controlled narrow vein gold deposit with significant exploration upside potential • March 2021 quarterly production of 1,576 oz gold at C1 cash costs of A$1,259 oz and
Slide 15: Red October Exploration Targets
Red October Exploration Targets Sensational past drilling results 7.3m @ 4.8g/t Au 0.8m @ 8.3g/t Au 11m @ 28.9g/t Au Nemos 2m @ 91.0g/t Au 2m @ 26.3g/t Au 12m @ 23.8g/t Au RCRD023 11m @ 28.9g/t Au ROC104: 12m @ 23.8g/t Au 3.1m @ 94.9g/t Au ROGEX032 3.1m @ 94.9g/t Au Lion Fish 5.8m @ 8.3g/t Au 2m @ 9
Slide 16: Upcoming news flow
Upcoming news flow ✓ Devon regional exploration drilling results ✓ Bindah mining study ✓ Red October model updates (Lion Fish, Marlin, Nautilus) ✓ Fortitude Stage 2 update model ✓ Devon / Hill east update models ✓ Matsa ore processing plant progress update ✓ Fortitude North initial model Delivering
Slide 17: Lake Carey regional potential
Lake Carey regional potential • 503km2 high quality area in north east goldfields region surrounded by world class mines • Multiple corridors along an extensive 69km of strike • Significant pipeline of 30 exploration targets ready for drilling • Favourable structural settings along major faults • Sa
Slide 18: 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 19: Significant Regional Prospectivity
Significant Regional Prospectivity Devon Hub Devon Pit – strong exploration potential remains at depth Hill East – >1km gold-in-soil anomaly, numerous historical workings, shallow drill tested Fortitude Hub Fortitude North – Matsa discovery, 7km north of Fortitude pit Bindah / Gallant trend – 1.3km
Slide 20: Fortitude North – a Substantial Discovery
Fortitude North – a Substantial Discovery • BIG system - 1.5km strike, 600koz gold exploration target* • Previous drilling results include: 47m @ 2.55 g/t Au incl. 5m @ 17 g/t Au 18FNAC071 26m @ 1.95 g/t Au incl. 5m @ 5.41 g/t Au 18FNAC036 8m @ 2.94 g/t Au incl. 5.8m @ 3.8g/t Au 19FNDD001 3.4m @ 12.
Slide 21: Fortitude North
Fortitude North • Very strong early indications of multiple lode system with intercepts between 50m and 200m below surface • Lake exploration historically challenging – provides a largely untapped exploration frontier • Less than 50% of strike tested below aircore refusal 21 Corporate Presentation *
Slide 22: Devon – May 2021 drilling
Devon – May 2021 drilling* • Potential NW extensions to Devon pit Hanging wall lode • Testing potential linking structure between HE1 and HE2 • Testing geophysics anomaly that could extend HE5 resource to SE • First pass exploration drilling to test LIN1 coincident Geochem and geophysical anomaly •
Slide 23: Red October - New Western and Eastern Targets
Red October - New Western and Eastern Targets Matsa will drill test from existing underground development (traces shown in white) • Co-incident seismic and sub-audio magnetic (SAM) anomalies • Limited previous drilling consists of only 2 holes and 3 wedges, which intersected these ‘new’ structures a
Slide 24: Planned Work Schedule
Planned Work Schedule Q2 2021 Q3 2021 Q4 2021 H1 2022 H2 2022 Optimisation and mine design Red October East pit model Red October Project Drilling LTP mine plan SAM survey extension Extensional & resource drilling Devon Project Open pit feasibility Hill East supergene model Fortitude North SAM surve
Slide 25: Exploration will deliver shareholder value
Exploration will deliver shareholder value • Focus and commitment to transform Matsa to mid tier gold producer • Fortitude and Devon alone deliver potential A$96M, with more to come • Two existing mining centres (Red October & Fortitude) with 3rd developing (Devon) on granted MLs • High-grade Devon
Slide 26: Contact
CONTACT Paul Poli Executive Chairman Suite 11, 139 Newcastle Street Perth, Western Australia 6000 +61 8 9230 3555 reception@matsa.com.au 26 Corporate Presentation