Matsa Resources signs milling deal with FMR Investments for Devon Pit gold mine

Matsa Resources (ASX:MAT) has signed a formal toll milling agreement with FMR Investments for the processing of gold ore from its Devon Pit Gold Mine at FMR's Greenfields Mill, located near Coolgardie.

The agreement sets the stage for Matsa to begin preliminary mining operations, with the first ore expected to be extracted by June.

The feasibility study for the Devon Project forecasts the production of 340,000 tonnes of gold ore at 4.6 g/t, yielding 50,000 ounces of contained gold and a projected positive cash flow of $59.8 million at a gold price of $4,250/oz.

The processing of Devon ore will take place in six batches over a 15-month period, starting in September.

Matsa, alongside its newly appointed mining contractor, Blue Cap Mining, will handle the mining and transportation of ore to Greenfields Mill, where the processed gold will be sent to the Perth Mint for refining.

Matsa's Executive Chairman, Paul Poli, emphasised that the TMA marks a key milestone in the company's transition to gold mining, with the completion of remaining agreements expected soon.

At the time of reporting, Matsa Resources' share price was $0.067.