Matsa Resources Ltd · ASX:MAT
Matsa Resources — Noosa Mining & Exploration Investor Conference 2021
36 slides from Matsa Resources's conference presentation, July 2021
Slide 1: Becoming a Gold Producer
Becoming a Gold Producer ASX : MAT matsa.com.au Paul Poli | Noosa | July 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 93.5M at $0.17 – 0.35 A$30.02M at $0.095 12/07/21 SNAPSHOT SHARES ON ISSUE OPTIONS MARKET CAPITALISATION Source: ASX 13 July 2021 MAT: TWELVE MONTH SHAREPRICE KEY SHAREHOLDERS as at 13/7/21 DIRECTORS BNP Paribas - Clearstream 15.51% Paul Poli Executive Chairman &
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 • Excellent exploration pipeline with proven high-grades • Concept study
Slide 5: Symons Hill - Fraser Range
Symons Hill - Fraser Range • Commanding land holding in Fraser Range Q4 2021 provides strategic Ni exposure from 225km2 tenement package Nova • Matsa completed tenement wide EM on Operation E69/3070, IGO undertaking diamond drilling and exploration • E28/2916 – 5km NW of Nova, Matsa 21AFDD105 review
Slide 6: Symons Hill - Fraser Range
Symons Hill - Fraser Range • Standout 410m* intercept of blebby to semi massive Q4 2021 sulphide zone with pyrrhotite, chalcopyrite and pentlandite • Drill hole testing historical Bottom Of Hole (AC) anomalism of 1m @ 0.10% Ni and 0.11% Cu & 1m @ 0.09% Ni and 0.10% Cu • Anticipating further drilling
Slide 7: Symons Hill - Fraser Range
Symons Hill - Fraser Range • Symons Hill Nickel project is located ~6km SW of IGO’s Nova operation Q4 2021 • 843m drill hole completed by IGO/MAT, A$7M JV earn-in agreement • JV conditions: • A$625,000 paid to Matsa for first 24mths exploration period • A$1,375,000 payable to Matsa for next 12 month
Slide 8: Lake Carey
Lake Carey Sunrise Dam Laverton Wallaby Granny Smith Kerringal Red October Fortitude Butchers Well Red October Village Devon Pit Gallant Bindah 8 Corporate Presentation
Slide 9: 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 10: 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 11: 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 12: Matsa’s Focus — our own mill
; % Matsa’s Focus — our own mill MATSA RESOURCES Third Party Olympic & Hill East Ore N Z Prospects* Lexie \ Third =— Proposed Matsa Processing Plant Red October? Processing Plant Strategic pathway to long term production + Underpinned by Fortitude Stage 2 and Devon mines « Strong prospect pipeline w
Slide 13: 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 14: 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 54,400o
Slide 15: 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 S
Slide 16: 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 17: 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 18: Red October Gold Mine
Red October Gold Mine Sensational past drilling results 7.3m @ 4.8g/t Au 0.8m @ 8.3g/t Au 11m @ 28.9g/t Au Nemo 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 @ 91.0g/t Au R
Slide 19: Upcoming news flow
Upcoming news flow ✓ Devon regional exploration drilling results (1m sample 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 initi
Slide 20: 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 21: 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 22: 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 23: Devon – May 2021 drilling
Devon – May 2021 drilling* 3m Composite results* Devon Pit • 3m of 7.20 g/t Au from 63m (21HERC053) • 6m of 2.33 g/t Au from 69m (21HERC054) LIN5 • 3m of 6.91 g/t Au from 15m (21HERC061) HE1-HE2 • 3m of 16.8 g/t Au from 123m (21HERC042) • 3m of 6.88 g/t Au from 84m (21HERC046) • 9m of 1.99 g/t Au fr
Slide 24: 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 25: 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 25 Corporate Presentation *
Slide 26: 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 + 3 wedges, which intersected these ‘new’ structures at
Slide 27: 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 28: 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 29: Contact
CONTACT Paul Poli Executive Chairman Suite 11, 139 Newcastle Street Perth, Western Australia 6000 +61 8 9230 3555 reception@matsa.com.au 29 Corporate Presentation
Slide 30: Appendix
Appendix 30 Corporate Presentation
Slide 31: Successful Seismic Survey - March 2020
Successful Seismic Survey - March 2020 Strong structures in seismic line-up with Marlin and Red October Shear Zone (ROSZ) ROSZ Marlin Strong western Looking south west structure Curtin University – DistributedAcoustic Sensing (DAS) technology under MERIWAresearch program, MINEX CRC 31 Corporate Pres
Slide 32: Red October - 2D Seismic Section
Red October - 2D Seismic Section 32 Corporate Presentation
Slide 33: Red October Exploration Targets
Red October Exploration Targets To be followed up: Nemos 7.3m @ 4.8g/t Au 0.8m @ 8.3g/t Au 11m @ 28.9g/t Au RCRD023: 12m @ 23.8g/t Au 2m @ 91.0g/t Au 2m @ 26.3g/t Au ROC104: 11m @ 28.9g/t Au ROGEX032: 3.1m @ 94.9g/t Au 12m @ 23.8g/t Au Lion Fish 3.1m @ 94.9g/t Au ROEX041: 2m @ 91.0g/t Au 5.8m @ 8.3g
Slide 34: Red October - Revised Outlook
Red October - Revised Outlook • 173koz Au in Measured, Indicated & Inferred* • Strong exploration and mining potential demonstrated in MSO • Numerous in-mine and brownfields exploration targets 34 Corporate Presentation
Slide 35: Devon LIN 1- Newly Discovered Target
Devon LIN 1- Newly Discovered Target • 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) 35 Corporate Presentation
Slide 36: Wider Devon Area SAM Survey
Wider Devon Area SAM Survey • 38 strong Sub-audio magnetic (SAM) anomalies identified immediately south of Devon pit • 3 walk up drill targets supported by anomalous geophysics and geochemistry • LIN1, MMC HE1, MMC HE5 – drilling being organised as we speak, results expected soon 36 Corporate Presen
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