Devon
Latest News at Devon:
Matsa has entered in to a profit-sharing joint venture agreement (“JVA”) with Linden Gold Alliance Limited (“Linden”) in relation to the Devon Gold Pit whereby Linden has made a prepayment to Matsa of $4M. View the announcement here.
Overview
The Devon project includes the Devon mine and a significant number of historic gold workings in the northern part of the Linden goldfield. The Devon area is located immediately south of Red October and is contiguous with Matsa’s Red October tenements. Devon is an active mine site on care and maintenance and the approvals process to recommence mining is expected to be simple.
History
The Devon open pit gold mine was initially trial mined by GME Resources in May 2015, over a six-month mining operation. GME Resources reported drilling below the pit and old workings which indicated mineralisation remained open at depth. However, access for drilling for potential extensions of the open pits was limited by tenure with the surrounding ground then owned by Anova Metals Limited.
The Devon open pit gold mine was initially trial mined by GME Resources in May 2015, over a six-month mining operation. GME Resources reported drilling below the pit and old workings which indicated mineralisation remained open at depth. However, access for drilling for potential extensions of the open pits was limited by tenure with the surrounding ground then owned by Anova Metals Limited.
In separate, but simultaneous, transactions Matsa acquired both the Devon gold mine and the surrounding mineralised areas around it and therefore amalgamating this highly prospective exploration ground and allowing for exploration of potential extensions to mineralisation to progress unencumbered by tenement boundaries.
Mining Study
In April 2021 Matsa released the details of a scoping study on the Devon Pit, with the key parameters and outcomes below.
Under the terms of the JVA, Linden is working towards completing a Definitive Feasibility Study (“DFS”) by 31 August 2023 with a view to production by June 2024. The key milestones of the JVA are:
1. Non-binding commitment from a toll mill or ore purchaser by 31 March 2023
2. Delivery of an approved Definitive Feasibility Study by 31 August 2023
3. Proof of funding by 30 September 2023
4. Commencement of mining before 30 June 2024
Exploration target: 133,000 to 386,000oz*
Work has now well underway to update Devon which includes the Devon Pit, Olympic and Hill East prospects, to produce 2012 JORC compliant models based on recent drilling. Optimisation studies will be completed to determine the potential for open pit and underground development opportunities.
Discrete zones of supergene gold mineralisation at Hill East, lie within a strong 1,500m long NNW trending soil gold anomaly which remains only sparsely drilled at depth and is a priority search space for deeper primary mineralisation untested by current drilling.
*The potential quantity and grade of an Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource
