The additional tenure is immediately adjacent to Red Dog, which is in Western Australia's northern goldfields.
Hosted by syenite and volcanics with sporadic high grades in historical drilling, the new ground gives Matsa contiguous leases over a mapped syenite intrusion exposed at surface.
Under the deal Matsa paid $25,000 for a 12-month option.
This option can be exercised if Matsa then wants to acquire 100% of the tenement, at a cost of $100,000.
When/if mining does begin at Red Dog then Matsa has to pay a royalty to the vendors.
Gold amounts up to 10,000 ounces will incur a 2.25% gross smelter royalty while amounts from 10,000oz to 50,000oz will be slugged 1.5%.
Anything above 50,000oz will face a 1% royalty; while a 0.5% net smelter royalty will appl...
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