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MATSA RESOURCES LIMITED Capital/Financing Update 2020

Dec 6, 2020

65296_rns_2020-12-06_a46807ed-2d83-4423-902c-a827f44aba22.pdf

Capital/Financing Update

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Matsa Resources Limited

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ASX Announcement

7[th] December 2020

High Grade Gold Results Enhances Devon

Highlights

  • Reverse Circulation (RC) drilling confirms gold mineralisation in zones of high grade, narrow, strongly sulphidic shears and quartz veins, with similarities to Matsa’s Red October Gold Mine

CORPORATE SUMMARY

Executive Chairman

Paul Poli

Director

  • Significant intercepts include:

Frank Sibbel

Main Lode

Director & Company Secretary

  • 4m @ 15.55 g/t Au from 71m, incl 3m @ 19.6 g/t Au

  • 2m @ 8.23 g/t Au from 65m, incl 1m @ 15.19 g/t Au

  • 3m @ 10.56 g/t Au from 119m, incl 1m @ 25.93 g/t Au

  • 2m @ 11.3 g/t Au from 95m, incl 1m @ 20.95 g/t Au

  • 5m @ 2.44 g/t Au from 110m, incl 1m @ 9.1 g/t Au

Hanging Wall Lode

  • 12m @ 8.97 g/t Au from 14m, incl 2m @ 24.08 g/t Au from 14m, incl 1m @ 50.39 g/t Au

Andrew Chapman

Shares on Issue

271.14 million

Unlisted Options

77.78 million @ $0.17 - $0.35

Top 20 shareholders

Hold 56.1%

Share Price on 4[th] December 2020

  • 2m @ 6.56 g/t Au from 72m, incl 1m @ 12.23 g/t Au

12 cents

  • 1m @ 18.71 g/t Au from 46m

  • 3m @ 7.83 g/t Au from 62m

Market Capitalisation

$32.54 million

  • Drilling confirms shallow high grade gold in the Hanging Wall Lode remaining open to the north with the potential to significantly enhance Devon

  • Gold mineralisation in the Main lode is interpreted to plunge towards the north and remains open

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

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Figure 1: Devon RC drilling October 2020 with Interpreted Surface Projection of Main and Hanging Wall lodes, Previous Drilling and Tenement Boundaries

Matsa Resources Limited (“Matsa” or “the Company” ( ASX: MAT ) is pleased to announce assay results from recent Reverse Circulation (RC) drilling at the Company’s Devon Prospect within the Lake Cary Gold Project located in the Eastern Goldfields of Western Australia.

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487 Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

Devon RC Drilling Programme October 2020

The RC drilling programme comprised 46 RC drill holes (20DVRC006 to 20DVRC051) for a total of 5,075m. This drilling programme was carried out as part of Matsa’s stated objective of increasing the company’s resource base within the Lake Carey gold project through discovery of new gold mineralisation.

An Exploration Target[1] of between 100,000 and 250,000 ounces of gold was estimated at Devon based on historic drilling and more recent drilling conducted by Matsa [2] .

Drilling was designed to test the resource potential of the Exploration Target at Devon in terms of grade, continuity, depth and strike extents of the moderately SW dipping Main Lode and the adjacent more steeply dipping Hanging Wall Lode (Figure 1).

The high grade Devon gold mine is one of a number of exploration targets being tested within the Company’s Lake Carey gold project.

Assay results to date have further defined gold mineralisation within the Main Lode and Hanging Wall Lodes which remain open down plunge and at depth respectively as previously described at Devon[3] .

Devon RC Drilling Results

Significant intercepts from recent RC drilling are listed below: (For full list of Assay Results >0.1 g/t Au refer Appendix 2 – Part 2)

Main Lode Zone Intercepts

20DVRC016: 5m @ 2.13 g/t Au from 75m incl 1m @ 8.43 g/t Au

20DVRC028: 1m @ 22.07 g/t Au from 70m

20DVRC031: 4m @ 15.5 g/t Au from 71m, incl 3m @ 19.6 g/t Au 20DVRC033: 2m @ 8.23 g/t Au from 65m, incl 1m @ 15.19 g/t Au

20DVRC034: 3m @ 6.33 g/t Au* from 59m

20DVRC036: 3m @ 10.56 g/t Au from 119m, incl 1m @ 25.93 g/t Au 20DVRC037: 2m @ 11.3 g/t Au from 95m, incl 1m @ 20.95 g/t Au

20DVRC039: 5m @ 2.44 g/t Au from 110m, incl 1m @ 9.1 g/t Au

Hanging Wall Lode Intercepts

20DVRC020: 1m @ 18.71 g/t Au from 46m

20DVRC022: 12m @ 8.97 g/t Au from 14m, incl 2m @ 24.08 g/t Au & 1m @ 50.39 g/t Au

20DVRC032: 2m @ 6.56 g/t Au from 72m , incl 1m @ 12.23 g/t Au

1 The Exploration Target is based on available information to guide exploration and prioritise drill hole planning. The potential quantity and grade of an Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

2 ASX Announcement 18th August 2020 - Significant Gold Potential Lake Carey Gold Project

3 ASX Announcement 22nd January 2020

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

20DVRC050: 3m @ 7.83 g/t Au* from 62m

  • Assay based upon 3m Composites, 1m split assays awaited

Interpretation and comments on drilling results can be summarised as follows:

  • Mineralisation in the Main Lode appears to plunge at a shallow angle to the north and remains open and next phase drilling is planned to more fully define the mineralisation (Figure 2)

  • Drilling confirms the complex structural nature of both the Main and the Hanging Wall lodes

  • High grade gold mineralisation in the Hanging Wall Lode including very shallow intersections in the weathering profile in 20DVRC022 ( 12m @ 8.97 g/t Au from 14m) and in previous Matsa drill hole 19DVRC003 ( 15m @ 20.78 g/t Au from 23m), and remains open to the north and at depth (Figure 3)

  • The Hanging Wall Lode, which does not outcrop at surface and with no historic mining, remains very sparsely drilled. Future drilling will seek to test the shallow depth potential and extensions to mineralisation to the north which remains open

Collar locations are shown in Figure 1, intersections on the Main and Hanging Wall Lodes are summarised in longitudinal projections in Figures 2 and 3, and selected cross sections are shown as Figures 4-6.

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Figure 2: Devon Main Lode Longitudinal Projection, Summary Drilling Results and Recent Drilling

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

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Figure 3: Devon Hanging Wall Lode Longitudinal Projection, Summary Drilling Results and Recent Drilling

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Figure 4: Devon Cross Section 3 - Depicting hole 20DVRC022

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

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Figure 5: Devon Drilling Cross Section 1 - Depicting hole 20DVRC034 – 36

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Figure 6: Devon Cross Section 2 - Depicting hole 20DVRC027, 31 & 32

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

Sampling and Assay Procedures

First round assay results for 3m composite samples have been received to date for the 46 RC drill holes completed in the most recent round of drilling (Figure 1). Final assay results were also received for 1m split samples over selected intervals from 38 of the 46 drill holes. Consequently, this announcement draws on results from the 1m split samples where available, and on composite assay results for the 8 holes* where 1m split results are not yet available.

Assays continue to be subject to significant delays and this is an industry-wide issue due to the substantial increase in drilling activity seen in Western Australia in recent months.

Sampling and assay procedures and protocols are documented in Appendix 1, assays >0.1g/t Au are listed in Appendix 2 - Part 2. Assays for the Main Lode and Hanging Wall Lodes respectively, are summarised in Figures 2 and 3.

Matsa’s sampling protocols as noted in Appendix 1, specify that:

  • first pass assays are carried out on 3m composite samples

  • 1m split samples are submitted for composite intervals returning >0.1 g/t Au

As noted above, assay results have been subject to significant delays and at the time of writing, 1m assays have been received for 38 of the 46 drill holes completed, consequently 1m split assays are not available for drill holes 20DVRC034 and 20DVRC045-20DVRC051 (Figure 2 and Figure 3).

Next Steps

Down-hole optical televiewer surveys providing oriented structural and lithological data were successfully completed in many of the recent RC drill holes. Analysis of this data is planned to be carried out in order to more accurately define structure, geological contacts and mineralisation.

Multi-element check assays are planned over selected intervals in order to examine potential pathfinder and alteration signatures to gold mineralisation.

Diamond drilling to obtain oriented drill core through Devon is planned once all assays have been received and a complete assessment of results has been carried out.

Devon Gold Mine Background

Historic production of 10,832 tonnes @ 19.5 g/t Au for 6,815 ounces of gold was reported from shallow underground workings between 1913 and 1929. More recent open pit mining was carried out by GME between June 2015 and August 2016 with reported production of 47,302 tonnes at an average grade of 5.3 g/t Au to a depth of 42m[4] .

Gold mineralisation at Devon is contained within ultramafic and mafic intrusives including pyroxenite, gabbro, quartz gabbro and dolerite. There are additional subsidiary gold bearing quartz veins adjacent to the main lode which are also of interest to Matsa.

There are similarities between gold mineralisation at Devon and Red October which are both made up of narrow, high grade, structurally complex quartz sulphide lodes in a mostly mafic ultramafic host sequence.

4 GME Resource ASX Announcement 25/10/2016 - Quarterly Report

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

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Figure 9: Devon Location in relation to Red October, Fortitude and proximity to haul roads

The Lake Carey Gold Project

Matsa holds a ground position of 563km[2] at Lake Carey which is highly prospective for new gold discoveries. The Company is committed to becoming a mid-tier gold mining company with the commencement of underground production at the Red October gold mine. This follows its recently completed trial mining operation at Fortitude and mining at the Red Dog deposit. Furthermore, studies are continuing into the viability of a full scale open-pit gold mine at Fortitude.

Matsa also sees substantial opportunities for further discoveries in favourable structural and stratigraphic settings within the Lake Carey Project area which remain relatively under-explored. The Fortitude and Bindah Faults are examples of favourable corridors which contain gold mineralisation

(eg. Bindah, Fortitude, Jubilee, Misery and Keringal) and Matsa’s recently discovered gold targets (BE 1 - 4).

Matsa’s discovery at Fortitude North and earlier discoveries along the Bindah Fault, provides strong support for Matsa’s belief that there are significant areas which remain under-explored despite 30 years of exploration since the discovery of Sunrise Dam in 1988.

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

This ASX announcement is authorised for release by the Board of Matsa Resources Limited.

For further information please contact:

Paul Poli

Executive Chairman T 08 9230 3555 E [email protected]

Competent Person Statement

The information in this report that relates to Exploration results, is based on information compiled by David Fielding, who is a Fellow of the Australasian Institute of Mining and Metallurgy. David Fielding is a full time employee of Matsa Resources Limited. David Fielding has sufficient experience which is relevant to the style of mineralisation and the type of ore deposit under consideration and the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. David Fielding consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

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Matsa Resources Limited
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Appendix 1 - Matsa Resources Limited – Lake Carey Project

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation
Commentary
Sampling
techniques
Nature and quality of sampling (eg cut channels, random chips, or specific
specialised industry standard measurement tools appropriate to the minerals
under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc.). These examples should not be taken as limiting the broad
meaning of sampling.
RC drill cuttings sampled at 1m intervals through cone splitter into numbered
bag. Bulk residues stacked on the ground with one metre split sample on top.
Composites samples ~3kg in weight representing 3m downhole intervals are
hand scooped from bulk residue submitted for gold-only assay.
Measures taken to ensure sample representivity and the appropriate
calibration of any measurement tools or systems used.
Composite samples are poorer quality samples than the cone split 1m samples,
but are used to identify mineralised intervals. Consequently, 1m split samples in
all composite intervals >0.1 g/t are assayed for final result. Where several
composite samples return >0.1 g/t, any intermediate composited intervals which
did not assay >0.1 g/t Au within the “run” are also selected for assay of 1m splits.
Aspects of the determination of mineralisation that are Material to the Public
Report. In cases where ‘industry standard’ work has been done this would be
relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m
samples from which 3 kg was pulverised to produce a 30 g charge for fire
assay’). In other cases more explanation may be required, such as where there
is coarse gold that has inherent sampling problems. Unusual commodities or
mineralisation types (eg submarine nodules) may warrant disclosure of
detailed information.
Samples of 2-3kg were collected for both composite and 1m split sample
intervals. No special measures were taken for coarse gold. The photon assay
technique utilises a significantly larger charge (500g) than either 30g or 50g fire
assay and so would be more appropriate if coarse gold is present.
Drilling
techniques
Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast,
auger, Bangka, sonic, etc.) and details (eg core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit or other type, whether core is
oriented and if so, by what method, etc.).
Drilling was carried out using a truck mounted RC rig. Drilling employed a high
quality face sampling RC system with sampling carried out through a cyclone and
cone splitter which was cleaned regularly. Drilling made use of a booster and
overall sample quality was good despite strong water inflows, dry samples
throughout.
Drill sample
recovery
Method of recording and assessing core and chip sample recoveries and
results assessed.
Sample recovery as determined by bulk residue volume was reasonably to highly
consistent and sufficient for an evaluation drilling program.

Measures taken to maximise sample recovery and ensure representative
nature of the samples.
Every effort made to clean sample system at the end of each 6m rod. Hand
sampling of composites was carried out carefully to avoid any contamination by

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

Criteria JORC Code explanation
Commentary
soil.

Whether a relationship exists between sample recovery and grade and
whether sample bias may have occurred due to preferential loss/gain of
fine/coarse material.
No significant change in volume of drill cuttings was observed in association with
mineralisation.
Logging
Whether core and chip samples have been geologically and geotechnically
logged to a level of detail to support appropriate Mineral Resource
estimation, mining studies and metallurgical studies.
Simple qualitative geological logs using standard geological coding sheets.

Whether logging is qualitative or quantitative in nature. Core (or costean,
channel, etc.) photography.
Logging is qualitative in nature.

The total length and percentage of the relevant intersections logged.
Logging was carried out on all RC cuttings.
Sub-sampling
techniques and
sample
preparation

If core, whether cut or sawn and whether quarter, half or all core taken.
Non core.

If non-core, whether riffled, tube sampled, rotary split, etc. and whether
sampled wet or dry.
Composite samples were scooped from bulk residue piles. 1m samples bagged
at cyclone through rotary splitter.

For all sample types, the nature, quality and appropriateness of the sample
preparation technique.
Sample prep for photon assay technique differs from fire assay and acid digest
techniques by involving drying and crushing to nominal 500g charge at -3mm.
No pulverizing is required for this technique.

Quality control procedures adopted for all sub-sampling stages to maximise
representivity of samples
QA QC samples were submitted with for the … 1m split samples collected in the
form of …. duplicate samples …standard samples and…. blank samples,

Measures taken to ensure that the sampling is representative of the in situ
material collected, including for instance results for field duplicate/second-
half sampling
Scooped composites can be biased but individual 1 metre samples are
continuous rotary split samples and as such are expected to be highly
representative of in situ mineralisation.

Whether sample sizes are appropriate to the grain size of the material being
sampled.
Sample weights of ~3kg documented are adequate for fine gold. The photon
assay technique utilises a comparatively large 500g charge and would be more
appropriate for coarsegold than a 30gor 50gfire assay

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

Criteria JORC Code explanation
Commentary
Quality of
assay data and
laboratory
tests

The nature, quality and appropriateness of the assaying and laboratory
procedures used and whether the technique is considered partial or total.
Samples for Photon Assay are dried and crushed to nominal -3mm and ~500g
linear split into photon assay jar for analysis. All excess sample retained.
Photon Assay is a fully automated technique designed for the analysis of ores. It
uses high energy x-rays to excite the atoms so liberation from the surrounding
material is not required. The ~500g single-use jars allows for bulk analysis with
no chance of cross contamination between samples Assay accuracy determined
by laboratory QACQ process. Very high grade gold assay values were subjected
to appropriate determinationsprior to reporting.

For geophysical tools, spectrometers, handheld XRF instruments, etc., the
parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc.
Not applicable.

Nature of quality control procedures adopted (eg standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels of
accuracy (ie. lack of bias) and precision have been established.
QA QC samples were submitted for assay together with4931m split samples in
the form of 13 duplicate samples, 12 standard samples and 19 blank samples
Analysis of the QAQC samples shows acceptable variation around expected
values.
Verification of
sampling and
assaying

The verification of significant intersections by either independent or
alternative company personnel.
individual 1m splits were submitted for assay to more accurately define reported
composite intercepts with results awaited. All assay and sampling procedures
verified by company personnel. All results reviewed and cross checked by
Exploration Manager Dave Fielding

The use of twinned holes.
No twinned holes carried out.

Documentation of primary data, data entry procedures, data verification,
data storage (physical and electronic) protocols.
Geological and sampling data recorded on Toughbook in the field to minimise
transcription errors. Hole locations recorded on GPS and compared prior to
upload to database.

Discuss any adjustment to assay data.
Assays reported in this announcement are assays of 1m split samples for drill
holes 20DVRC006-20DVRC033, DVRC035-DVRC044), Drill holes 20DVRC034 and
20DVRC051 are composite assays with final 1m split assays awaited.
Location of
data points

Accuracy and quality of surveys used to locate drill holes (collar and down-
hole surveys), trenches, mine workings and other locations used in Mineral
Resource estimation.
Collar location surveyed by DGPS to an accuracy of <0.5m. RC drill holes were set
up at surface using a compass and clinometer. Downhole measurements of
azimuth, and dip were carried out using gyroscopic tool downloaded digitally.
Downhole Surveys have been incorporated into the interpretive cross sections
in the body of the report.

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

Criteria JORC Code explanation
Commentary

Specification of the grid system used.
GDA94 UTM co-ordinate system Zone 51.

Quality and adequacy of topographic control.
All collars pickups were conducted utilising the Devon Mine Datum a registered
point MC DEV3 Located at 445794.628E and 6760005N and 399.716AHD and
established byRegistered Surveyor Douglas Fox on 18thJune 2019.
Data spacing
and
distribution

Data spacing for reporting of Exploration Results.
RC drilling was to assess near surface resource potential of the Main Lode below
existing open pit mine which was carried out in 2015 and 2016 by GME
Resources Ltd and in the Hanging Wall Lode where no previous drilling was
carried out.

Whether the data spacing and distribution is sufficient to establish the
degree of geological and grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s) and classifications
applied.
Drill hole spacing taken together with existing drilling, is sufficient to establish
continuity of the mineralised zones in the Main and Hanging Wall Lodes which
are made up of narrow, high grade, structurally complex mineralised shears and
veins. These are expected to be subject to variable thickness and grade. Long
sectional interpretations particularly of the Main Lode outline the extents of
reasonably continuous mineralisation. Drilling in the Hanging Wall lode has not
yet defined the extents and continuity of mineralisation in that position.

Whether sample compositing has been applied.
Compositing of samples from 1m to a maximum of 3m was carried out for first
pass assay.
Orientation of
data in relation
to geological
structure

Whether the orientation of sampling achieves unbiased sampling of possible
structures and the extent to which this is known, considering the deposit
type.
Angled drilling was oriented to take into account the structural interpretation of
the Devon Main Lode which is interpreted to dip around -45 degrees towards
the SW.

If the relationship between the drilling orientation and the orientation of key
mineralised structures is considered to have introduced a sampling bias, this
should be assessed and reported if material.
Unlikely to be biased. Orientation of continuous mineralisation was confirmed
by mining.
Sample
security

The measures taken to ensure sample security.
Samples are delivered to the laboratory by Matsa Staff. No special security
procedures are carried out in the field.
Audits or
reviews

The results of any audits or reviews of sampling techniques and data.
No audit carried out yet.

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria
JORC Code explanation
Commentary
Mineral
tenement and
land tenure
status
Type, reference name/number, location and ownership including
agreements or material issues with third parties such as joint ventures,
partnerships, overriding royalties, native title interests, historical sites,
wilderness or national park and environmental settings.
The security of the tenure held at the time of reporting along with any
known impediments to obtaining a license to operate in the area.
Exploration was carried out over the followingtenements:
Tenement
Status
Holder
Granted
Area
Units
M39/1077
LIVE
Matsa Gold
Ltd
20/12/2013
14.56
HA
M39/500
Live
Anova
Metals
Australia Pty
Limited
20/12/2013
420.31
HA
Purchased by Matsa Gold Pty Ltd effective 11/10/2019, transfer of title in
progress.
carried out over the followingtenements:
Status Holder Granted Area Units
LIVE
Live
Matsa Gold
Ltd
Anova
Metals
Australia Pty
Limited
20/12/2013
20/12/2013
14.56
420.31
HA
HA
Exploration done
by other parties
Acknowledgment and appraisal of exploration by other parties.
Significant drilling, resource estimation, mining studies and mining was
undertaken in M39/1077 by GME Resources. Previous drilling was carried out
by a variety of companies and have been incorporated into later work and
drilling programs by GME Resources. Key releases to the ASX by GME Resources
Ltd 29/10/2013,30/09/2014,26/10/2015,30/10/2015,26/1/2016.
Geology
Deposit type, geological setting and style of mineralisation.
The deposit comprises high grade sulphide quartz stringers in a mineralised zone
dipping moderately towards the SW. There are additional related mineralised
structures which occur as splays or adjacent bodies of mineralisation. The style
of mineralisation is Orogenic Gold, with mineralisation occurring at or about
peak deformation and metamorphism of the Archaean Host sequence which at
Devon comprise mostly mafic ultramafic volcanics, which have been intruded by
a suite of small felsicporphyrybodies.
Drill hole
Information
A summary of all information material to the understanding of the
exploration results including a tabulation of the following information for
all material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level – elevation above sea level in metres) of
the drill hole collar
Drill hole information is summarised in the report, with collar location setup
information and diagrams in the body of the report, assays >0.1 g are included
as Appendix 2. Significant assays are presented in the body of the report.
Reference is made to historic drilling, which has been summarised in the body of
the report. Key ASX announcements on exploration and development of the
Devon Mine are listed above.

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

Criteria JORC Code explanation Commentary
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
If the exclusion of this information is justified on the basis that the
No significant information was excluded deliberately.
information is not material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain
why this is the case.
Data In reporting Exploration Results, weighting averaging techniques,
Quoted intercepts are based on amalgamations of composite sample assays and
aggregation maximum and/or minimum grade truncations (eg. cutting of high grades)
individual 1m split samples sometimes averaged over two or three samples.
methods and cut-off grades are usually material and should be stated. Aggregates are reported as simple averages of individual assay results,all
Where aggregate intercepts incorporate short lengths of high grade
quoted intercepts include bounding samples returning >1 g/t Au and contains
results and longer lengths of low grade results, the procedure used for such
less than 3m of mineralized waste material <1 g/t Au, within the quoted
aggregation should be stated and some typical examples of such
intercept.
aggregations should be shown in detail.
The assumptions used for any reporting of metal equivalent values should
be clearly stated.
Relationship These relationships are particularly important in the reporting of
All intercepts quoted relate to downhole depth and true widths have not been
between Exploration Results. quoted.
mineralisation If the geometry of the mineralisation with respect to the drill hole angle is
widths and known, its nature should be reported. Current interpretation suggests that drill holes need to be oriented towards the
intercept lengths If it is not known and only the down hole lengths are reported, there should
NE to test moderately SW dipping main lode and potentially subvertical hanging
be a clear statement to this effect (eg ‘down hole length, true width not
wall structures.
known’).
Intercepts are expressed in downhole metres.
Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts
A drill hole location plan, longitudinal projections of the Main and Hanging Wall
should be included for any significant discovery being reported These
Lodes and summary cross sections have been used to illustrate the results in a
should include, but not be limited to a plan view of drill hole collar locations
meaningful way.
and appropriate sectional views.
Balanced Where comprehensive reporting of all Exploration Results is not
All drilling information from Devon was used.
reporting practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration
Results.

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

Criteria JORC Code explanation Commentary
Other Other exploration data, if meaningful and material, should be reported
The review made use of publicly available aeromagnetics and gravity. Past
substantive including (but not limited to): geological observations; geophysical survey
drilling by a number of companies on the project as compiled by GME Resources
exploration data results; geochemical survey results; bulk samples – size and method of
was acquired upon acquisition of the project.
treatment; metallurgical test results; bulk density, groundwater,
geotechnical
and
rock
characteristics;
potential
deleterious
or
contaminating substances.
Further work The nature and scale of planned further work (eg tests for lateral
A complete revision of geological model is underway in order to determine the
extensions or depth extensions or large-scale step-out drilling). most appropriate follow up drilling program.
Diagrams clearly highlighting the areas of possible extensions, including
Potential depth extensions of the Main lode zone are shown in the Longitudinal
the main geological interpretations and future drilling areas, provided this
Projection.
information is not commercially sensitive.

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

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Matsa Resources Limited
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(Criteria in this section apply to all succeeding sections.)

Appendix 2: Matsa Resources Limited – Devon RC Drilling September October 2020

Part 1: Drill Hole Collar Locations, Depths and Setup Information

Hole_ID HoleType Depth GridID East North RL Dip Azimuth
20DVRC006 RC 47 MGA94_51 445965 6759964 397 -61 74.5
20DVRC007 RC 71 MGA94_51 445945 6759959 398 -58 71.2
20DVRC008 RC 44 MGA94_51 445979 6759920 399 -60 69.3
20DVRC009 RC 83 MGA94_51 445963 6759913 398 -60 70
20DVRC010 RC 101 MGA94_51 445901 6759984 398 -60 70
20DVRC011 RC 137 MGA94_51 445873 6759990 398 -60 71
20DVRC012 RC 119 MGA94_51 445848 6760001 399 -60 70
20DVRC013 RC 143 MGA94_51 445818 6760011 399 -65 70
20DVRC014 RC 125 MGA94_51 445799 6760071 398 -60 70
20DVRC015 RC 143 MGA94_51 445759 6760096 399 -60 73
20DVRC016 RC 89 MGA94_51 445770 6760144 398 -60 70
20DVRC017 RC 125 MGA94_51 445750 6760137 399 -60 70
20DVRC018 RC 137 MGA94_51 445709 6760166 398 -70 70
20DVRC019 RC 149 MGA94_51 445689 6760180 399 -66 67.4
20DVRC020 RC 107 MGA94_51 445738 6760179 398 -60 68.4
20DVRC021 RC 125 MGA94_51 445724 6760192 398 -56 70.7
20DVRC022 RC 125 MGA94_51 445715 6760207 399 -55 74.8
20DVRC023 RC 149 MGA94_51 445691 6760202 399 -70 74.3
20DVRC024 RC 125 MGA94_51 445701 6760250 400 -65 70.6
20DVRC025 RC 137 MGA94_51 445671 6760261 404 -60 74.4
20DVRC026 RC 41 MGA94_51 445707 6760251 400 -70 249.5
20DVRC027 RC 131 MGA94_51 445675 6760324 404 -65 73.3
20DVRC028 RC 89 MGA94_51 445722 6760279 403 -60 72.6
20DVRC029 RC 101 MGA94_51 445721 6760278 403 -74 72.7
20DVRC030 RC 89 MGA94_51 445707 6760297 405 -50 250.8
20DVRC031 RC 89 MGA94_51 445706 6760335 407 -64 77
20DVRC032 RC 83 MGA94_51 445687 6760330 407 -50 256.6

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

Hole_ID HoleType Depth GridID East North RL Dip Azimuth
20DVRC033 RC 77 MGA94_51 445697 6760375 407 -58 71.1
20DVRC034 RC 71 MGA94_51 445695 6760418 409 -70 75
20DVRC035 RC 113 MGA94_51 445652 6760400 412 -65 77.2
20DVRC036 RC 137 MGA94_51 445651 6760400 412 -79 74.4
20DVRC037 RC 113 MGA94_51 445667 6760361 408 -61 75.1
20DVRC038 RC 119 MGA94_51 445655 6760445 414 -76 72.5
20DVRC039 RC 131 MGA94_51 445639 6760437 413 -79 78
20DVRC040 RC 89 MGA94_51 445616 6760413 412 -60 251.3
20DVRC041 RC 95 MGA94_51 445654 6760495 414 -60 73.8
20DVRC042 RC 101 MGA94_51 445641 6760523 414 -61 72.3
20DVRC043 RC 101 MGA94_51 445609 6760565 413 -60 74.1
20DVRC044 RC 107 MGA94_51 445589 6760610 411 -60 75.3
20DVRC045 RC 137 MGA94_51 445597 6760480 420 -60 72.7
20DVRC046 RC 179 MGA94_51 445562 6760464 420 -60 67.3
20DVRC047 RC 101 MGA94_51 445588 6760476 420 -60 248.4
20DVRC048 RC 131 MGA94_51 445635 6760435 413 -59 250
20DVRC049 RC 179 MGA94_51 445644 6760403 412 -89 178.94
20DVRC050 RC 77 MGA94_51 445656 6760356 407 -59 253.01
20DVRC051 RC 113 MGA94_51 445713 6760223 399 -55 70

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

Appendix 3: Matsa Resources Limited – Devon RC Drilling September, October 2020

Part 2: Assay Results >0.1 g/t Au

Hole_ID Sample ID Depth_From Depth_To Sample_Type g/t Au
20DVRC007 173063 12 13 1m Splits 0.1
20DVRC008 173127 2 3 1m Splits 1.13
20DVRC008 173128 3 4 1m Splits 0.21
20DVRC009 173178 7 8 1m Splits 0.23
20DVRC009 173183 11 12 1m Splits 0.18
20DVRC010 173262 3 4 1m Splits 0.12
20DVRC013 173641 7 8 1m Splits 0.19
20DVRC013 173705 68 69 1m Splits 0.15
20DVRC014 173784 0 1 1m Splits 0.3
20DVRC014 173785 1 2 1m Splits 0.16
20DVRC014 173893 104 105 1m Splits 0.5
20DVRC014 173896 107 108 1m Splits 1.39
20DVRC014 173897 108 109 1m Splits 0.18
20DVRC014 173906 116 117 1m Splits 0.16
20DVRC014 173912 122 123 1m Splits 0.8
20DVRC014 173913 123 124 1m Splits 0.25
20DVRC016 174145 75 76 1m Splits 1.42
20DVRC016 174146 76 77 1m Splits 0.1
20DVRC016 174147 77 78 1m Splits 0.67
20DVRC016 174149 79 80 1m Splits 8.43
20DVRC016 174150 80 81 1m Splits 0.56
20DVRC016 174151 81 82 1m Splits 0.22
20DVRC016 174152 82 83 1m Splits 0.1
20DVRC016 174154 84 85 1m Splits 0.25
20DVRC017 174203 41 42 1m Splits 2.15
20DVRC017 174212 50 51 1m Splits 0.59
20DVRC017 174213 51 52 1m Splits 1.74
20DVRC017 174214 52 53 1m Splits 0.32
20DVRC017 174215 53 54 1m Splits 0.12
20DVRC017 174264 99 100 1m Splits 0.57
20DVRC017 174268 103 104 1m Splits 5.25
20DVRC017 174269 104 105 1m Splits 0.37
20DVRC019 174450 14 15 1m Splits 0.11
20DVRC019 174527 87 88 1m Splits 0.1
20DVRC019 174583 140 141 1m Splits 0.28
20DVRC019 174584 141 142 1m Splits 0.9
20DVRC019 174585 142 143 1m Splits 0.17
20DVRC020 174637 43 44 1m Splits 0.19
20DVRC020 174638 44 45 1m Splits 0.26
20DVRC020 174639 45 46 1m Splits 0.26

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

Hole_ID Sample ID Depth_From Depth_To Sample_Type g/t Au
20DVRC020 174641 46 47 1m Splits 18.71
20DVRC020 174642 47 48 1m Splits 0.24
20DVRC020 174643 48 49 1m Splits 0.19
20DVRC020 174691 94 95 1m Splits 0.17
20DVRC022 174836 0 1 1m Splits 0.48
20DVRC022 174851 14 15 1m Splits 13.48
20DVRC022 174852 15 16 1m Splits 34.67
20DVRC022 174853 16 17 1m Splits 1.95
20DVRC022 174854 17 18 1m Splits 0.89
20DVRC022 174855 18 19 1m Splits 0.55
20DVRC022 174858 21 22 1m Splits 1.5
20DVRC022 174859 22 23 1m Splits 0.41
20DVRC022 174861 23 24 1m Splits 50.39
20DVRC022 174862 24 25 1m Splits 2.4
20DVRC022 174863 25 26 1m Splits 1.28
20DVRC022 174865 27 28 1m Splits 0.14
20DVRC023 175005 35 36 1m Splits 0.92
20DVRC023 175015 45 46 1m Splits 0.32
20DVRC023 175016 46 47 1m Splits 0.13
20DVRC023 175017 47 48 1m Splits 0.69
20DVRC023 175018 48 49 1m Splits 0.97
20DVRC023 175019 49 50 1m Splits 0.88
20DVRC023 175071 98 99 1m Splits 0.11
20DVRC023 175074 101 102 1m Splits 0.23
20DVRC023 175077 104 105 1m Splits 0.33
20DVRC023 175115 140 141 1m Splits 0.16
20DVRC025 175271 14 15 1m Splits 0.2
20DVRC025 175273 16 17 1m Splits 0.13
20DVRC025 175274 17 18 1m Splits 0.15
20DVRC025 175277 20 21 1m Splits 0.22
20DVRC025 175278 21 22 1m Splits 3.32
20DVRC025 175279 22 23 1m Splits 0.28
20DVRC025 175316 57 58 1m Splits 0.5
20DVRC025 175317 58 59 1m Splits 2.35
20DVRC025 175397 134 135 1m Splits 0.2
20DVRC027 175549 100 101 1m Splits 0.43
20DVRC027 175550 101 102 1m Splits 5.47
20DVRC027 175551 102 103 1m Splits 0.42
20DVRC027 175552 103 104 1m Splits 0.69
20DVRC027 175553 104 105 1m Splits 0.12
20DVRC028 175655 70 71 1m Splits 22.07
20DVRC028 175656 71 72 1m Splits 0.25
20DVRC029 175753 74 75 1m Splits 0.1

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

Hole_ID Sample ID Depth_From Depth_To Sample_Type g/t Au
20DVRC029 175756 77 78 1m Splits 0.14
20DVRC029 175757 78 79 1m Splits 0.1
20DVRC029 175762 82 83 1m Splits 0.16
20DVRC029 175770 90 91 1m Splits 0.14
20DVRC029 175771 91 92 1m Splits 0.13
20DVRC030 175848 63 64 1m Splits 0.43
20DVRC030 175851 66 67 1m Splits 0.39
20DVRC030 175852 67 68 1m Splits 0.83
20DVRC030 175853 68 69 1m Splits 0.21
20DVRC030 175854 69 70 1m Splits 0.18
20DVRC030 175857 72 73 1m Splits 0.19
20DVRC030 175858 73 74 1m Splits 1.48
20DVRC030 175861 75 76 1m Splits 0.48
20DVRC030 175862 76 77 1m Splits 2.34
20DVRC031 175950 71 72 1m Splits 20.3
20DVRC031 175951 72 73 1m Splits 12.89
20DVRC031 175952 73 74 1m Splits 25.61
20DVRC031 175953 74 75 1m Splits 3.18
20DVRC031 175954 75 76 1m Splits 0.5
20DVRC031 175955 76 77 1m Splits 0.18
20DVRC032 176028 56 57 1m Splits 0.44
20DVRC032 176031 59 60 1m Splits 4.96
20DVRC032 176032 60 61 1m Splits 0.22
20DVRC032 176045 72 73 1m Splits 12.23
20DVRC032 176046 73 74 1m Splits 0.89
20DVRC032 176047 74 75 1m Splits 0.23
20DVRC032 176048 75 76 1m Splits 0.14
20DVRC033 176117 58 59 1m Splits 0.19
20DVRC033 176125 65 66 1m Splits 1.27
20DVRC033 176126 66 67 1m Splits 15.19
20DVRC033 176127 67 68 1m Splits 0.39
20DVRC033 176128 68 69 1m Splits 0.16
20DVRC033 176129 69 70 1m Splits 0.12
20DVRC035 176308 92 93 1m Splits 1.79
20DVRC035 176309 93 94 1m Splits 3.07
20DVRC035 176310 94 95 1m Splits 0.28
20DVRC035 176312 96 97 1m Splits 0.74
20DVRC035 176313 97 98 1m Splits 0.27
20DVRC035 176316 100 101 1m Splits 0.83
20DVRC035 176317 101 102 1m Splits 0.62
20DVRC036 176453 117 118 1m Splits 0.12
20DVRC036 176454 118 119 1m Splits 0.12
20DVRC036 176455 119 120 1m Splits 25.93

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

Hole_ID Sample ID Depth_From Depth_To Sample_Type g/t Au
20DVRC036 176456 120 121 1m Splits 4.8
20DVRC036 176457 121 122 1m Splits 0.96
20DVRC036 176458 122 123 1m Splits 0.17
20DVRC036 176459 123 124 1m Splits 0.18
20DVRC036 176461 124 125 1m Splits 0.2
20DVRC036 176462 125 126 1m Splits 0.17
20DVRC036 176469 132 133 1m Splits 3.08
20DVRC036 176470 133 134 1m Splits 0.14
20DVRC036 176473 136 137 1m Splits 1.75
20DVRC037 176565 87 88 1m Splits 0.65
20DVRC037 176567 89 90 1m Splits 0.18
20DVRC037 176572 94 95 1m Splits 0.27
20DVRC037 176573 95 96 1m Splits 20.95
20DVRC037 176574 96 97 1m Splits 1.62
20DVRC037 176575 97 98 1m Splits 0.17
20DVRC038 176666 70 71 1m Splits 3.07
20DVRC038 176667 71 72 1m Splits 0.17
20DVRC038 176669 73 74 1m Splits 1.08
20DVRC038 176671 75 76 1m Splits 0.34
20DVRC038 176678 82 83 1m Splits 2.04
20DVRC038 176679 83 84 1m Splits 0.42
20DVRC038 176686 89 90 1m Splits 1.27
20DVRC038 176691 94 95 1m Splits 0.1
20DVRC038 176693 96 97 1m Splits 0.76
20DVRC038 176694 97 98 1m Splits 0.29
20DVRC039 176833 110 111 1m Splits 9.1
20DVRC039 176834 111 112 1m Splits 0.17
20DVRC039 176835 112 113 1m Splits 0.6
20DVRC039 176837 114 115 1m Splits 2.28
20DVRC039 176838 115 116 1m Splits 0.11
20DVRC039 176841 117 118 1m Splits 0.1
20DVRC039 176843 119 120 1m Splits 0.1
20DVRC039 176845 121 122 1m Splits 0.15
20DVRC040 176924 65 66 1m Splits 2.44
20DVRC040 176926 67 68 1m Splits 0.11
20DVRC040 176927 68 69 1m Splits 0.24
20DVRC040 176928 69 70 1m Splits 0.2
20DVRC040 176930 71 72 1m Splits 0.51
20DVRC040 176931 72 73 1m Splits 0.14
20DVRC040 176932 73 74 1m Splits 0.26
20DVRC040 176933 74 75 1m Splits 3.92
20DVRC040 176934 75 76 1m Splits 0.37
20DVRC041 176981 30 31 1m Splits 2.89

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]

Matsa Resources Limited

Hole_ID Sample ID Depth_From Depth_To Sample_Type g/t Au
20DVRC041 176982 31 32 1m Splits 2.74
20DVRC041 176992 41 42 1m Splits 0.24
20DVRC041 177027 74 75 1m Splits 0.1
20DVRC041 177028 75 76 1m Splits 0.2
20DVRC041 177029 76 77 1m Splits 0.28
20DVRC042 177071 21 22 1m Splits 1.98
20DVRC042 177131 78 79 1m Splits 2.01
20DVRC042 177132 79 80 1m Splits 0.12
20DVRC043 177187 30 31 1m Splits 0.15
20DVRC043 177244 84 85 1m Splits 1.61
20DVRC043 177245 85 86 1m Splits 0.13
20DVRC043 177246 86 87 1m Splits 0.51
20DVRC043 177248 88 89 1m Splits 0.12
20DVRC044 177351 85 86 1m Splits 1.94
20DVRC044 177352 86 87 1m Splits 0.62
20DVRC044 177353 87 88 1m Splits 0.11
20DVRC034 ROX093221 5 8 3m Comps 0.26
20DVRC034 ROX093233 41 44 3m Comps 0.24
20DVRC034 ROX093235 47 50 3m Comps 0.11
20DVRC034 ROX093239 59 62 3m Comps 6.33
20DVRC034 ROX093240 62 65 3m Comps 0.11
20DVRC045 ROX093615 0 2 3m Comps 0.32
20DVRC045 ROX093617 5 8 3m Comps 0.13
20DVRC045 ROX093647 95 98 3m Comps 0.83
20DVRC045 ROX093650 104 107 3m Comps 0.12
20DVRC045 ROX093653 113 116 3m Comps 0.12
20DVRC045 ROX093659 131 134 3m Comps 0.22
20DVRC046 ROX093663 5 8 3m Comps 0.41
20DVRC046 ROX093709 143 146 3m Comps 0.63
20DVRC047 ROX093721 0 2 3m Comps 0.37
20DVRC047 ROX093722 2 5 3m Comps 0.17
20DVRC047 ROX093723 5 8 3m Comps 0.45
20DVRC049 ROX093854 164 167 3m Comps 0.16
20DVRC050 ROX093878 56 59 3m Comps 0.24
20DVRC050 ROX093880 62 65 3m Comps 7.83
20DVRC050 ROX093881 65 68 3m Comps 0.15
20DVRC050 ROX093883 71 74 3m Comps 0.16
20DVRC051 ROX093885 0 2 3m Comps 0.42
20DVRC051 ROX093886 2 5 3m Comps 0.23
20DVRC051 ROX093888 8 11 3m Comps 0.1
20DVRC051 ROX093889 11 14 3m Comps 0.51

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected]