Matsa Resources : 31 December 2021 Quarterly Report

Matsa Resources Limited

only		28th January 2022
ASX Announcement
use	Quarterly Activities Report 31st December 2021
HIGHLIGHTS	CORPORATE SUMMARY
• Matsa entered into a binding agreement to sell the Red October	Executive Chairman
	and Devon gold projects to Linden Gold Pty Ltd (LGL) for	Paul Poli
	consideration of $20M. Post the transaction, Matsa to retain the
	Directors
	majority of Lake Carey which will host a 553Koz gold resource
personal
2	Frank Sibbel
across 385km .
	Pascal Blampain
• Continued exploration at Fortitude North ahead of a maiden
	mineral resource. This includes interpretation of new ground	Andrew Chapman
	magnetic survey data which defined a 2.5km long dilational zone	Shares on Issue
	considered to reflect important controls on the higher grade gold	358.95 million
	mineralisation. This will form the basis of upcoming drilling
	Listed Options
•	Results from soil sampling at New Years Gift extends gold
49.22 million @ $0.17
	anomaly under shallow cover by approximately 350m
•	Soil sampling has been undertaken east of Fortitude (results	Unlisted Options
59.08 million @ $0.17 - $0.35
	pending) over an interpreted favourable structural setting in
	preparation for a first pass exploration drilling program	Top 20 shareholders
• Due diligence completed on Carmen gold prospect (E39/2128)	Hold 53.29%
	resulting in Matsa acquiring the prospect	Share Price on 28th Jan 2022

•

For•

•

Rock chip sampling of historical workings at Carmen returned favourable results up to 13.7g/t Au and demonstrates that exploration drilling is warranted

Strategic review of the improving mining environment in Thailand and the potential benefits to Matsa's Thailand assets

Sale of excess Red October mobile plant and mining equipment for $552,000

5.7 cents

Market Capitalisation

A$20.46 million

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [e-mail]

Matsa Resources Limited

For personal use only

INTRODUCTION

Matsa Resources Limited ("Matsa" or "the Company" ASX: MAT) is pleased to report on its exploration and corporate activities for the quarter ended 31st December 2021.

Activities during the quarter have been principally focused on the Company's Lake Carey Gold Project

(Figure 1) and comprised the following:

• Subject to a Sale and Purchase Agreement as announced on 20 December 2021, Matsa will divest its Red October and Devon assets to Linden Gold Pty Limited (LGL) for a consideration of $20M1
• Soil sampling at New Years Gift return anomalous gold results indicating that further work on these prospects is warranted
• Interpretation of new ground magnetic survey completed at Fortitude North has defined a 2.5km dilational setting that could help explain the nature and context of high grade drill results from Matsa's drilling programs and will be used to help plan the next stage of exploration drilling
• Re-loggingof Fortitude North drill core in context of the new magnetic data has identified that up to 4 stages of mineralisation exists (a full synopsis of textural and mineralogical associations is expected early in the next quarter)
• Acquisition of the 9km2 Carmen prospect (E39/2128) at Lake Carey, which hosts a number of historical shafts last mined in the late 1800's

1. Rock chip sampling at Carmen has returned up to 13.75g/t Au near existing historical shafts

• 1. A review of historical magnetic data and maps suggests immediate multiple walk up drill targets can be tested
• High resolution ground magnetic surveys have been designed and planned for Fortitude East, Carmen and FF1
• Planning of drilling programs for Fortitude North, Fortitude East area, New Years Gift, Bindah, Carmen, Wilga and Mirage
• Two new tenements added to the Fraser Range portfolio (E39/2162 and E39/2159)

LAKE CAREY GOLD PROJECT

On 20 December 2021, Matsa announced a Sale and Purchase Agreement (SPA) for the Red October and Devon projects for a consideration of $20M. The tenements affected by this planned sale are outlined in Figure 1. Details of the SPA can be found later in this report under Corporate.

During the quarter, Matsa acquired the Carmen prospect E39/2128 (9km2) which was added to the Lake Carey Gold Project. The tenement is located south of Hill East and west of Gallant and contains a number of historical workings associated with the historical Linden gold camp.

1 ASX Announcement 20th December 2021-$20M Sale of the Red October and Devon Gold Projects

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [e-mail]

Matsa Resources Limited

For personal use only

Figure 1: Lake Carey Gold Project showing the tenements subject to the SPA outlined in red

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [e-mail]

Matsa Resources Limited

For personal use only

MINERAL RESOURCES

The global Mineral Resource Estimate for Lake Carey remains at 867,000oz @ 2.4g/t Au as outlined in Table 1 below.

	Cutoff	Measured	Indicated	Inferred	Total Resource
	g/t Au	('000t)	g/t Au	('000t)	g/t Au	('000t)	g/t Au	('000t)	g/t Au	('000 oz)
Red October
Red October UG	2.0	105	8	483	5.7	411	6.3	999	6.2	199
Red October Subtotal		105	8.4	483	5.7	411	6.3	999	6.2	199
Devon
Devon Pit (OP)	1.0	-	-	341	4.8	102	3.6	443	4.6	65
Olympic (OP)	1.0	-	-	-	-	171	2.8	171	2.8	15
Hill East (OP)	1.0	-	-	-	-	633	1.7	633	1.7	35
Devon Subtotal		-	-	341	4.8	906	2.1	1247	2.9	115
Fortitude
Fortitude	1.0	127	2.2	2,979	1.9	4,943	1.9	8,048	1.9	489
Gallant (OP)	1.0	-	-	-	-	341	2.1	341	2.1	23
Bindah (OP)	1.0	-	-	43	3.3	483	2.3	526	2.4	40
Fortitude Subtotal		127	2.2	3021	2.0	5,767	1.9	8,915	1.9	553
Total		232	5.0	3,845	2.7	7,084	2.2	11,161	2.4	867

Table 1: Lake Carey Resource*

*Matsa confirms that it is not aware of any new information or data that materially affects the Resource as stated. All material assumptions and technical parameters underpinning the Mineral Resource estimate continue to apply and have not changed since the last release.

*Special note: The Resources of the Red October and Devon projects, representing 314koz, are subject to the Sale and Purchase Agreement announced on 20 December 20212.

FORTITUDE NORTH

Since its discovery in 2018, Fortitude North has been defined as a 1.5km long aircore anomaly in deeply weathered mafic volcanics under approximately 40m of lacustrine clays3. To date, only 800m of the 1.5km long gold anomaly has been drill tested below aircore refusal. The following previously reported drill intersections highlight the presence of extensive gold mineralisation at Fortitude North:

• 47m @ 2.55 g/t Au from 42m (18FNAC71 Aircore)
• 26m @ 1.95 g/t Au from 58m (18FNAC36 Aircore)
• 8.0m @ 3.02 g/t Au from 106m (19FNDD001 Diamond)
• 4.0m @ 13.63 g/t Au from 79m (20FNDD002 Diamond)
• 17.2m @ 3.4 g/t Au from 73m (20FNDD003 Diamond)

Late in the September 2021 quarter, new geological modelling by Matsa confirmed the potential of the Exploration Target* at Fortitude North with a range between 378,990oz @ 2.53 g/t Au and 600,000oz @ 3.8 g/t Au. This model** comprises 33 mineralised intercepts and has dimensions of 1,300m length by 350m depth and approximately 4m thickness. The prospect has been modelled as steeply dipping stacked lodes with minor components of poddy flat supergene4 in line with the geometries observed in the nearby Fortitude gold mine.

1. ASX Announcement 20th December 2021-$20M Sale of the Red October and Devon Gold Projects
2. ASX Announcement 31 March 2020-New Results Highlight Significant Gold Discovery Fortitude North
3. ASX Announcement 16 September 2021-Fortitude North Shaping to be a Significant Mineralised System

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [e-mail]

Matsa Resources Limited

For personal use only

*The Fortitude North Exploration Target (model) is not a resource and is conceptual in its present form, it is based on wide spaced drill lines up to 300m apart. Whilst geological continuity is thought to be present, further drilling is required. The model has been prepared to guide exploration and prioritise future drill hole planning

• Modelling was completed using eight AC holes, six RC holes and seven diamond core drill holes.

Fortitude North Ground Magnetic Survey

A 66 line km high resolution ground magnetic survey was completed at Fortitude North during the previous quarter5 with results received late in 2021. Interpretation of the processed magnetic data shows that mineralisation (as reflected by the basement gold aircore anomaly), is located in a structurally complex dilational jog within the NW trending Fortitude Fault where it splits into a number of NW trending splays (refer Figure 2).

Figure 2: Fortitude North: Total Magnetic Intensity ground magnetic image showing drilling, outline of gold mineralisation in weathered basement and summary structural interpretation

5 ASX Announcement 27 October 2021-Quarterly Activities Report 30th September 2021

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [e-mail]