Matsa distances itself from Devon Pit DFS
PERTH (miningweekly.com) – ASX-listed Matsa Resources has urged its shareholders to disregard a definitive feasibility study (DFS) released by its Devon Pit joint venture (JV) partner Linden Gold.
Under a profit-sharing JV agreement with Matsa, Linden was required to deliver an approved DFS by the end of August this year. However, Matsa told shareholders that the company had not approved or authorised the outcomes or the public disclosure of the study released by Linden earlier this week.
Linden’s DFS estimated that the Devon openpit project would require a life-of-mine (LoM) capital investment of A$81.-million, to deliver 38 370 oz of gold over a 14-month mine-life, at an LoM operating cost of A$43.2-million.
Based on a gold price of A$2 750/oz, the project is expected to generate revenue of some A$74-million, free cash flows of A$23.4-million and an internal rate of return of 387%.
Linden said in its statement that the DFS mine design contemplates a large openpit cutback to the existing Devon Pit which was last mined in 2016. Dewatering of the existing pit is required before mining commences, with an estimated timeline of 68 days to complete.
While Linden was enamoured of the study results, Matsa told its shareholders that initial reviews of the study by its technical advisers had already raised a number of concerns regarding the study.
Matsa said that it would seek further information or clarification from Linden regarding the basis of certain assumptions in the study, and had written to its JV partner requesting that the release disclosing the DFS study results be withdrawn until the company had time to approve the study.
In the meantime, the company was considering its options in relation to the premature disclosure of the study results, given there was no third-party review and Linden’s purported satisfaction of the development milestone under the JV agreement.
Comments
Research Reports
Latest Multimedia
Showroom
The SAIMM started as a learned society in 1894 after the invention of the cyanide process that saved the South African gold mining industry of the...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
