The Fortitude project is flagged to produce 12,100 ounces at all-in-sustaining-costs of $1140 per ounce, with Matsa using a gold price of $1600/oz for its modelling.
The capital cost has been put at about $1.2 million.
Ore mined from open cuts – 185,000 tonnes grading 2.2 grams per tonne – will be hauled 35km to AngloGold Ashanti’s Sunrise Dam operation.
Matsa’s total resources in the area are currently estimated at 354,600oz, with the company to assess the feasibility of a full scale development.
The modest scale initial development sees Matsa join a handful of other ASX juniors that have initiated toll treatment ventures over the past year or two.
Matsa reported cash and liquid assets of about $7 million at the start of April.
Shares in Matsa closed at 20c Monday, capitalising the company at $29 million.
