Matsa Resources announces fresh gold hits in WA

Matsa Resources (ASX:MAT) appears to have inspired ire with its shareholders as the company is hit by a sell-off on the back of a new gold discovery. Matsa shares are down -4.26% to 4.5c heading into lunchtime trade. 

The latest drills hit the dirt at the company’s Fortitude North prospect at the Lake Carey project, nearby Leonora, WA.

The program was designed to test how far gold mineralisation extends underground at the prospect, and two drill holes both hit gold, though a geotechnical hiccup saw drillholes placed 10m apart, and not 20m. 

While Matsa can’t boast it has proved a 20m wide gold system, the move comes as further confirmation for the potential commercial value of Fortitude North. 

Let’s take a look at grades announced today, and found previously. 

What has Matsa found at Lake Carey? 

Investor information provider Undervalued Equity notes high grade gold is considered that above 5 grams of gold per tonne (g/t), but 4g/t is also considered high grade in many Australian contexts. 

Today Matsa reports: 

• 9.4m @ 3.27g/t at 120m depth

• 1.0m @ 6.57g/t from 148m depth 

These results add weight to the thesis gold mineralisation is extensive at Fortitude North, with previous drilling turning over the following results:

• 47m @ 2.55g/t at 42m depth

• 4.9m @ 13.63g/t at 79m depth

• 10.3m @ 3.48 g/t at 124m depth

• 5.0m @ 17.0g/t at 53m depth 

Investors should note the thickest intersection at the middle grade of 2.55g/t is the most shallow deposit on-site, allowing for the cheapest development. 

Whether or not consistent mineralisation is present at 42m, however, cannot be determined on these results alone. 

What’s next at Lake Carey?

Matsa is to continue probing the area to figure out where gold mineralisation starts and ends, and at what depths it occurs. 

The company is seeking to develop a gold resource underpinning its ambition to set up a development with production potential equalling that of the Fortitude Gold Mine, to which Matsa bought the rights in 2016. 

A large geomagnetic target north of Fortitude north itself (that target is called FF1) also sits on the company’s radar. 

Matsa currently has a market cap of $16.1m and is ranked 588 of 912 materials sector constituents. It finished June with $1.5m.

Matsa Resources hasn't been seeing much action on the bourse since early July