Matsa Resources Limited
LIMITED
ABN 48 106 732 487
ASX Announcement 22nd November 2016
Drilling Commenced on New Exploration Targets Lake Carey Gold Project
Highlights
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A drilling program comprising ~177 aircore drill holes for ~15,000m has commenced within the Lake Carey gold project
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Potential to complement Matsa's 385,300 oz (JORC 2012) Fortitude gold deposit
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Drilling is planned on targets over a previously untested 8km section of the Bindah fault
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This highly prospective structural and stratigraphic setting, is an extension of a gold mineralised corridor with mineralisation in a number of locations including the Bindah and Galant deposits
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Targets are concealed by Lake Carey and remain untested by previous drilling
CORPORATE SUMMARY
Executive Chairman
Paul Poli Director Frank Sibbel
Director & Company Secretary
Andrew Chapman
Shares on Issue
144.70 million
Unlisted Options
6.90 million @ $0.25 - $0.30
Top 20 shareholders
Hold 54.78%
Share Price on 21 November 2016
20 cents
Market Capitalisation
$28.94 million
Head Office: Suite 11, 139 Newcastle Street, Perth Western Australia 6000 Tel: +61 8 9230 3555 Fax: +61 8 9227 0370
Bangkok Office: Unit 1808, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 Tel: +66 0 2653 0258 Fax: +66 0 2653 0258 [email protected] www.matsa.com.au
Matsa is pleased to provide an update on its Lake Carey gold project where the Company has commenced a substantial aircore drilling program on Lake Carey. Drilling is located near to the Company's 385,300 oz (JORC 2012) * Fortitude gold deposit, where mining is planned to commence in early 2017. The program will cover exploration targets in and adjacent to Lake Carey which remain untested by previous drilling.
It is Matsa's strong belief that there is still significant potential for new discoveries in this highly prospective region which contains the world class Sunrise Dam, Granny Smith and Wallaby gold mines. The high prospectivity for substantial new and potentially stand-alone gold deposits in the Lake Carey region has been reinforced by recent announcements that AngloGold Ashanti Ltd and Saracen Mineral Holdings Ltd are to jointly explore the area along the western edge of Lake Carey (SAR ASX announcement 17th October 2016).
*Upgrade of gold resource to JORC 2012 status as announced MAT announcement to ASX 1st September 2016.
Drilling follows a comprehensive review and targeting study based on Matsa's extensive database of past exploration data and drilling. Previous exploration data includes mostly shallow drill holes, aeromagnetic data and limited geochemical data.
The targets are located in and adjacent to Lake Carey, in an area of limited outcrop and extensive sand and lake cover. The review confirmed a number of targets which are highly prospective for significant gold mineralisation and with the potential to be a major economic benefit to the Fortitude gold deposit (Figure 1).
Figure 1: Lake Carey Gold Project, regional geology and exploration targets
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The Bindah Extended target area was one of a number of targets identified and has been prioritised for immediate drilling (Figure 1).
The Bindah Extended target area is located over a highly prospective 8km section of the Bindah Shear with favourable rock types including Banded Iron Formation (BIF) and ultramafics which are highly prospective as potential hosts for gold mineralisation. The target area represents an extension of the gold bearing structural and stratigraphic corridor containing the Bindah, Galant and Intrepid gold deposits. A review of available open file reports indicates minimal previous exploration within the Bindah Extended target area. Limited aircore drilling at the southern end of the target returned highly anomalous gold intercepts in 4 drill holes including 4m @ 0.87 g/t Au. This target is located only 8km SE of Saracen's Red October gold mine (Appendix 1, Appendix 2).
Drilling Programme
The ~177 drill hole aircore programme has commenced at the Bindah Extended target area, for an estimated total of ~15,000m. Planned drill holes are located entirely on the bed of Lake Carey and will be completed using drilling equipment which is specially designed to operate in salt lakes (Figure 2).
Figure 2: Lake Aircore drilling rig
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For further information please contact:
Paul Poli
Executive Chairman
Phone +61 8 9230 3555
Fax +61 8 9227 0370
Email [email protected]
Competent Person
The information in this report that relates to Exploration results, is based on information compiled by David Fielding, who is a Fellow of the Australasian Institute of Mining and Metallurgy. David Fielding is a full time employee of Matsa Resources Limited. David Fielding has sufficient experience which is relevant to the style of mineralisation and the type of ore deposit under consideration and the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. David Fielding consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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