FMR Investment’s Greenfields processing plant has begun treating ore from Matsa Resources’ Devon Pit gold mine in the Laverton region of Western Australia.
As per the toll milling agreement between FMR and Matsa, the gold ore from Devon Pit will be processed in six batches over a 15-month period, beginning when an initial batch of 50,000 tonnes (t) has been hauled. This is expected to commence on September 17.
The first 2000t of the scheduled 50,000t parcel has been delivered this week. Matsa’s first gold pour is expected within seven days of processing commencing, with gold doré to be delivered to the Perth mint for refining.
“I am really pleased with this milestone achievement,” Matsa executive chairman Paul Poli said.
“The development progress at Devon has been excellent and now that we’re hauling to FMR for processing, things are getting really exciting. The mine setup, infrastructure and material and equipment movement planning has fallen into place nicely and whilst results so far are very pleasing, we are not getting distracted from ensuring the first 50,000t parcel of high-grade ore from Devon is delivered on time for a September quarter processing campaign, and importantly, our first gold sales.
“Road train haulage to FMR is now running around the clock currently running six road trains and ramping up to 10 in the later part of August and into September and I look forward to reporting on our first processing campaign and gold sales shortly in September.”
Located within Matsa’s Lake Carey gold project, Devon currently has an ore reserve estimate of 309,000t at 4.59 grams per tonne (g/t) of gold for 46,000 ounces (oz).
Devon’s feasibility study revealed the mine is set to deliver almost $60 million in cash flow surplus (pre-tax) over its 18-month mine life. The study also demonstrated production of 340,000t at 4.6g/t for 50,000oz.
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