Matsa Resources has acquired a 90% interest in two exploration licences (E39/1796 and E38/2938) in order to expand the exploration area of Lake Carey gold project in Western Australia.
The two newly acquired licences cover a total area of 43.32km². Currently, the company is conducting an extensive aircore drilling programme at Lake Carey gold project, while beginning trial mining at the Fortitude gold deposit is expected in mid-2017.
With completion of this acquisition, Matsa’s exploration footprint at Lake Carey has increased to 425.2km².
The Lake Carey project falls in the highly prospective Laverton tectonic zone close to multiple important gold mines such as Red October of Saracen, Sunrise Dam of AngloGold Ashanti and the Granny Smith and Wallaby mines that are operated by Goldfields.
The purchased tenements are situated over major faults as interpreted from aeromagnetics and previous drilling.
The company expects that these two licences will turn out to be highly prospective with gold mineralisation.
Currently, it is reviewing all past explorations conducted within these licences. E39/1796 spans around 26.47km², while E38/2938 has an area of 16.85km².
Under the transaction, Matsa will acquire 90% of E39/1796 and E38/2938 licences. It has paid $20,000 on signing the term sheet.
The agreement also requires Matsa to ‘free carry’ vendor to completion of feasibility study for remaining 10% licences. The vendor can dilute to a 1.5% NSR royalty if it decides not to contribute from completion of feasibility study.
A joint venture agreement will be negotiated together with deeds of cross charges, while other documents customary for a production joint venture will be entered by both parties.