Fortitude – Stage 2 Gold Mine

Fortitude – Stage 2 Gold Mine

Fortitude – Stage 2 Gold Mine

Matsa has completed a Stage 2 Mining study at the Fortitude gold deposit. The study has delivered highly positive results, indicating the potential for an immediate commencement of the Fortitude Stage 2 mining operation.

Key metrics of the mining study are as follows:

• Total cash surplus A$21.8M over 22 months
• Total production of 54,400 oz gold at 93% recovery
• Capital outlay A$6.6M which includes pre-stripping
• Operating cash cost of A$1,628/oz gold
• Assumed average gold price of A$2,150
• Total material movement 5.85M bank cubic metres (bcm’s) at a waste to ore ratio of 14.4
• Total Indicated and Inferred Mineral Resources at Fortitude stand at 5,449,000 tonnes @ 2.0g/t Au (342,600 oz Au)
• Maiden ore reserve declared of 1,029,000 tonnes at 1.8 g/t for 58,100 oz gold

Importantly, all statutory and regulatory approvals are in place for the immediate commencement of mining with the potential for a substantial increase of gold ore reserves in the near term.

Figure 1 Mining Study Projected Cash Flow ($AUD)