Western Australia's Department of Mines and Petroleum (DMP) has approved Matsa Resources’ mining proposal and closure plan for Fortitude gold mine, which is part of the larger Lake Carey project.
DMP approval brings the company a step closer to starting production from the proposed trial mining operation at Fortitude.
Initial mining operations are expected to start in June, while production is scheduled to begin in mid-late July.
Results from the study indicate that trial mining would generate a cash surplus of $5.2m over a period of 12 months, with an investment of approximately $1.2m.
Sensitivity analysis also indicated that the project will have limited risks from a fall in gold prices, realised grade or fluctuations in mining costs.
Matsa is yet to receive final approval from the Department of Environmental Regulation for Works and Licence to discharge water. However, the company expects to secure this licence soon.
Currently, the company is in negotiations with a number of nearby processing plants for the treatment of ore. Finalisation of a binding agreement is expected in the near-future.
With its headquarters in Perth, Matsa Resources is a mining and exploration company.
The company focuses on discovery and development of gold, nickel, copper and gold properties in Australia and South East Asia.