PERTH (miningweekly.com) – ASX-listed Matsa Resources has inked an ore purchase agreement with gold miner AngloGold Ashanti for the ore produced from the Red October gold mine, in Western Australia.
Ore from the Red October mine will be proceed at AngloGold Ashanti’s 3.8-million-tonne-a-year mill at the Sunrise Dam project for a period of up to five years.
Matsa will be responsible for mining and transporting the ore to the Sunrise Dam operation, some 60 km from the Red October mine, with AngloGold Ashanti taking possession of the ore once delivered.
“The execution of the agreement with AngloGold Ashanti continues our strong relationship and builds on the memorandum of understanding both parties entered into in mid-2018,” said Matsa executive chairperson Paul Poli.
“Previous mining campaigns at Fortitude and Red Dog have been successfully processed at Sunrise Dam with minimal fuss and we expect this to be no different. The fact that AngloGold are prepared to potentially accept all ore from Red October for up to five years is a testament to this as Matsa looks to develop a longer-term mine plan in the future.”
The first delivery of ore to the Sunrise Dam plant will start at the end of November this year.