Matsa is hoping for a $5.4m cash injection from its Red Dog gold project
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Matsa Resources is expecting a handy $5.4 million cash injection now that mining has started at its Red Dog gold mine in Western Australia.
The gold ore will be treated at AngloGold Ashanti’s (ASX:AGG) nearby Sunrise Dam gold mine processing facilities, with about 13,400 ounces expected to be recovered.
“Most would scoff at something this size – but we have an excellent resource at no more than 12m below surface,” Matsa (ASX:MAT) chairman Paul Poli told investors at the RIU Resource Round Up in Sydney in May.
“We can mine this small stranded deposit and make ourselves roughly $500-$600 an ounce, which will bolster cash reserves for the rest of our portfolio.”
Matsa has been principally focused on bringing its Red Dog and Red October gold mines into production and advancing exploration at the 600 sq km Lake Carey Gold project south of Laverton in Western Australia.
Matsa held cash and liquid investments of about $8 million at the end of June.
Matsa's pic of the week: Paul Poli on site at Red Dog pic.twitter.com/gbgtTl1UQi
— Matsa Resources Ltd (@MatsaResources) September 10, 2018