Matsa Resources Limited ('Matsa' or 'the Company' ASX: MAT) is pleased to announce results from its recently completed grade control diamond drilling program at the Company's Red October gold mine in the Eastern Goldfields of Western Australia as recently announced (MAT announcement to ASX 10th October 2019).
Matsa completed 11 underground diamond drill holes, for a total of 1,451 metres focussing on extensions in the main mining area (ROSZ North).
Drilling has produced outstanding gold assays and confirms the high-grade potential of the Red October gold mine as follows: The discovery of new high-grade lodes which are not reflected in the June 2016 Resource model is significant. The high-grade lodes indicate the strong potential for more ore-bearing structures to be discovered to the north by further drilling
These new lodes will be prioritised for further evaluation as new opportunities outside of the known lode system
Confirmation that another high-grade shoot exists within the ROSZ, further to the north. This new high-grade domain (ROSZ Costello) is a top priority in 2020 to extend a drill platform and infill to delineate for future mining
Matsa Executive Chairman Paul Poli commented: 'We can again prove that substantial new mining opportunities remain at the Red October Gold Project. The results achieved by this drilling program are extremely exciting for the Company. Our belief continues to be, that substantial gold zones remain undiscovered and abundant opportunities exist to develop a long term, highly rewarding, underground gold mining operation at Red October. This belief was the core reason we acquired Red October. We will enthusiastically continue to grow and develop Red October and we expect many more exciting results.'
Red October Mine Geology Background
The Red October deposit is hosted within a lithology package that dips steeply to the northwest that is interpreted to be the northern limb of a district scale NE-trending antiform. The deposit is centred on a shale unit that separates a footwall of tholeiitic pillowed basalts and a hanging wall succession of talc-carbonate to serpentinised ultramafic and high-Mg basalt with sparse interflow sediments. Near the top of the ultramafic-high Mg basalt sequence are thinly bedded iron-rich chert sedimentary units with variable sulphide content.
The ore system throughout Red October gold mine is structurally-hosted, with mineralised moderatesteeply dipping structures present in three main orientations (in RO Local grid); north striking, northeast striking, north-west striking.
Mineralisation occurs as shear-hosted lodes or shear vein/breccia style lodes, with both styles quite visible in contrast to the host rock. Mineralisation is associated with moderate-strong wall-rock hydrothermal alteration assemblages and sulphides, with biotite, muscovite, sericite, quartzcarbonate-calcite and pyrite commonly observed. Rheology contrasts, structural junctions and dilational zones have provided fluid pathways and opportunities for deposition of gold-bearing sulphides and coarse gold.
Grade Control Drilling
This initial phase is expected to be part of a much larger campaign over the next 6 months aimed at significantly increasing the gold resource at the Red October underground gold mine. The recent capital raising undertaken by the Company has allowed for planning to commence for a sizeable and comprehensive diamond drilling programme at Red October.
This first programme targeted the Red October Shear Zone (ROSZ) North and consisted of an initial 11 holes as follows
The focus of the first eight holes was to get a better understanding and potential for the highgrade shoots below the current workings and to test for additional high-grade shoots to the north.
A further three holes were drilled selectively based on the results both visually and via assay results from the first eight holes in 1 above.
Contact:
Paul Poli
Tel: +61 8 9230 3555
Fax: +61 8 9227 0370
Email: reception@matsa.com.au
Web: www.matsa.com.au
MATSA RESOURCES LIMITED 