Focus Minerals (ASX: FML)
ASX RELEASE
12
August 2009
Signs Mill Treatment Exclusivity Agreement with Matsa
Resources
Australian gold producer Focus
Minerals (ASX: FML, Focus) is pleased to announce the signing of an Exclusivity
Agreement with emerging mining company, Matsa
Resources Limited, (ASX: MAT; Matsa) for the
treatment of ore from Matsa’s Norseman Gold
Project at Focus Three Mile Hill Plant.
The exclusivity agreement is a
precursor to a formal binding agreement which - upon commissioning of Focus 1.2Mtpa Three Mile
Hill gold processing facility later this year - would involve treating ore produced from Matsa’s North Scotia deposit in scheduled milling
campaigns at Three Mile Hill expected to commence during February 2010.
The agreement, once finalised, will
generate valuable revenue for Focus as well as providing high-grade feedstock
for Three Mile Hill in its ramp-up to full scale production.
Focus Chief Executive Officer, Mr
Campbell Baird said the agreement with Matsa
would provide substantial benefits to both parties: We are very happy to
be in a position to help a fellow junior gold producer realise their production
ambition while at the same time generating cashflow
for ourselves.
It’s essentially a win-win
situation, particularly at such an early stage of our production ramp up utilising
any excess capacity. Processing Matsa’s
high-grade ore will also help with plant efficiency, as the need for utilising
Focus low-grade ore stockpiles will be reduced, he added.
To support a fellow aspiring
producer, Focus has also agreed, subject to conditions, to participate in a
share placement with Matsa, to the value of $200,000.
We look forward to expanding our
existing relationship and to continue working with Matsa
Resources as we place the necessary foundations to become a significant gold
producer in the region, said Mr Baird.
For further details please see Matsa Resources Limited’s ASX release on 12 August
2009
ENDS
BACKGROUND INFORMATION
FOCUS MINERALS LTD
Focus Minerals Ltd (ASX: FML)
is an Australian-based exploration and development group whose focus is to
become a significant gold and nickel producer in the Coolgardie-Kalgoorlie-Widgiemooltha region of Western Australia.
Focus Minerals is the largest
landholder in the Coolgardie Gold Belt located in Western Australia, 560km east
of Perth and 35km west of the Super Pit in Kalgoorlie-Boulder. More than 2.6
million ounces of gold has been produced from the Coolgardie gold belt alone
since 1892. Focus holds the mineral rights to more than 210sq km of tenements
including an extensive inventory of Measured, Indicated and Inferred gold
resources as well as the 1.2mtpa Three Mile Hill processing plant.
Focus commenced maiden commercial
gold production in April 2008 through ore sourced from the Company’s
flagship Perseverance Deposit (Probable Reserve of 129,000oz). Earlier this
year, the nearby Countess Deposit (Probable Reserve of 29,000oz) was also
brought into production with ore from both deposits currently being milled at
the nearby Greenfields treatment plant.