Matsa Resources Ltd.'s mining study for the proposed stage-two mining operations at its Fortitude gold deposit, part of the Lake Carey project in Western Australia, outlined capital expenditure of A$6.6 million, including A$5.1 million for pre-stripping overburden removal.
The study showed that second-stage mining is attractive with a potential cash surplus of A$21.8 million over 22 months, according to an Aug. 21 release.
Total production was estimated at 54,400 ounces of gold at 93% recovery at operating cash costs of A$1,628 per ounce.
A maiden ore reserve for the Fortitude stage-two mining study totaled 1 Mt at 1.8 g/t gold containing 58,100 gold ounces. The total indicated and inferred mineral resources at Fortitude stands at 5.4 million tonnes at 2.0 g/t gold containing 342,600 ounces.
The company noted that it holds all approvals necessary for the second-stage mining project.
