Latest News at Devon:
Matsa has executed a mutually agreed formal termination of the profit-sharing joint venture agreement (“JVA”) with Linden Gold Alliance Limited (“Linden”). This has resulted in Matsa re-assuming control of the Devon Pit Gold Mine and can now consider all options to extract value from the project View the announcement here.
The Devon project encompasses the Devon Pit Gold Mine (DPGM) and a significant number of historic gold workings in the northern part of the Linden goldfield. The project also includes resources at Hill East and Olympic. The Devon area is located immediately south of Red October and is contiguous with Matsa’s Red October tenements.
The DPGM is an active mine site on care and maintenance and significant progress has been made towards obtaining the regulatory approvals required to commence mining at DPGM. Key submissions to recommence mining have been lodged including; Works Approval (DWER), Clearing Permit (DWER), Mining Proposal (DMIRS), Mine Closure Plan (DMIRS) and 5C (water) abstraction licence (DWER). The Works approval application has been approved.
Like many of the region’s historical gold mining operations, the Devon Pit Gold Mine was initially worked as an underground mining operation. Historic production of 10,832t @ 19.5 g/t Au for 6,815 ounces of gold was reported from shallow underground workings between 1913 and 1929. More recently, GME Resources undertook open pit mining where approximately 15,000t at 6.2g/t was mined in 2015 and a further 47,032 tonnes @ 5.3 g/t for 7,398 oz mined in 2016. The ore was transported and processed at Carosue Dam.
Matsa acquired both the DPGM and the surrounding mineralised areas amalgamating this highly prospective exploration ground and allowing for exploration of potential extensions to mineralisation to progress unencumbered by tenement boundaries.
In 2021, following completion of new drilling, Matsa established a resource of 65koz at a grade of 4.6g/t Au (from 443kt). This updated resource prompted Matsa to undertake studies into potential recommencement of mining at the DPGM.
In May 2023 Matsa announced an updated Scoping Study on the potential restart of mining at the DPGM. The key parameters and outcomes were as follows:
•Cash surplus of A$37.1M* at A$2,650/oz sale price ($2,000 optimisation)
•Expected 16-month mine life with mining permits lodged
•Previous GME operated mine provides high level of confidence
•Planned production of 39,243 oz Au (assumed 93% processing recovery)
•Operating cash cost of A$1,613/oz Au
•Further improvements expected through increased drilling
•Nearby Hill East can share mining overheads
The next steps will involve the completion of a final Feasibility Study including results of recently completed drilling, additional metallurgical testwork, optimisation and mine designs, calculation of reserves and discussions with third parties to formalise commercial mining and processing options. A plan showing the proposed site layout for a restarted Devon Pit Gold Mine is shown below: