Matsa Resources (MAT)

Shares / Stock Code

MAT

Stock Exchange / Sharemarket

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Matsa Resources (MAT) is a mineral exploration and production company based in Western Australia. The Company’s assets are extensive mineral leases that contain defined gold resources and various mineral prospects. The principal project is located in the Norseman region located within the southern part of Western Australia’s Eastern Goldfields and contains a Resource of 1.47 million ounces of gold. The Company is actively evaluating the potential to develop both short-term and long-term cash flow through the development of these resources. The company was listed on Australian stock market on 20 April, 2005. Investors can trade Matsa Resources shares on the Australian Stock Exchange (ASX).

The Company has recently seen a change of executive management and now has an experienced Board that has a significant share holding in the Company. The Executive team is backed up by experienced mining and exploration personnel in Kalgoorlie where the Company’s activities are focussed. The Company aims to increase shareholder wealth through the discovery and development of mineral properties within Australia and South East Asia.

During the late 2008 significant changes to the world’s financial markets have impacted adversely on commodity prices and markets. Base metals and bulk commodities in particular have seen a contraction of demand resulting in significant price declines for these commodities. Fortuitously precious metals prices have remained strong, and in particular the gold price in Australian dollar terms has in fact increased by over 30% during the last six months. As the Company’s Norseman project has substantial defined gold resources of 1.47 million ounces the Company will focus the majority of its efforts here to maximise shareholder value creation.

A secondary consideration for the Company is the tightening of both credit and equity funding for riskier investments such as mineral exploration and development. Given this economic climate the Company is assessing opportunities to gain future funding of its activities through development of low capital cost, high-grade gold resources.

Broad Arrow Gold Project

Matsa owns 100% of the Broad Arrow project, which is centred 38km north of Kalgoorlie and 4km east of the historic gold mining centre of Broad Arrow. The contiguous tenements have an area of 53km2 and are comprised of forty two Prospecting Licenses and four Mining Leases lying along the eastern margin of the Bardoc Tectonic Zone (BTZ) and into the adjacent Scotia-Kanowna Dome monzogranite to the east.

The adjacent Norton Goldfields Limited owned “Golden Cities” project to the north-east within the Scotia-Kanowna Dome comprises a cluster of at least four prospects and resources spread over an area of 20km2 containing supergene laterite hosted mineralisation and primary structurally controlled gold mineralisation in the granite reported to contain over 650,000 ounces.

The area has become a major gold province in a geological setting not previously thought of as having high prospectivity. Previous exploration within the tenure includes regional mapping, surface geochemical sampling and RAB and RC drilling. Drilling within the Broad Arrow project has delineated seven targets.

The project has potential for conventional gold and nickel deposits within the area, as well as previously untested palaeo-channel gold deposits. This style of gold, in ancient river-channels, has been highly profitable for Kalgoorlie miners at the adjacent Lady Bountiful and Mount Pleasant mining centres (approximately 1.25 million ounces). Such deposits are typically difficult to locate and are high grade.

The Company believes that a two-fold exploration strategy can quickly define smaller shallow gold deposits suitable for treatment at the adjacent 3 million tonnes per annum Paddington gold plant, as well as locate potentially substantial resources of palaeochannel and bedrock gold mineralisation.