Matsa Resources (ASX:MAT) has made significant progress finding drill targets for concealed copper sulphides at its Siam project in Thailand by detecting five mineralised anomalies up to 500 metres long.
Significantly, the IP anomalies are located within the previously mapped boundary of copper mineralised float and provide strong support for a copper sulphide source.
A previously discovered 10-centimetre-wide high-grade chalcocite vein with copper values up to 54.6% copper and 148g/t silver is located adjacent to Anomaly 1. This strongly supports the hypothesis that the chalcocite vein represents "leakage" over more extensive copper sulphide mineralisation at depth.
Anomalies 1-4 with moderate chargeability are located in a generally resistive host rock, and interpreted as possible disseminated copper sulphides.
Anomaly 5 is located in a more conductive host rock and may reflect stronger copper sulphide development.
Matsa's geophysical consultant Bill Robertson commented:
"The IP responses are complex and most likely to have multiple sources. The five high-priority IP anomalies are considered to be targets for disseminated copper sulphide mineralization and warrant drill testing".
So far, about 20 copper targets have been identified and planning for diamond drilling of the high-priority anomalies is currently underway.
Siam has never been explored before and is located around 250 kilometres north of Bangkok.
The project is positioned in the Loei-Ko Chang fold belt which contains important mineral deposits including the Phu Kham copper mine in Laos and the plus-5 million ounce Chatree gold mine.
Siam's prospecting licences cover strongly anomalous copper values seen in regional stream sediment samples and occupies an area comprised mostly cleared farmland with well-developed infrastructure including all weather roads and power supply.
Thailand is considered a favourable country for mining investment due to its high geological prospectivity, strong legal framework and rule of law, quality of internal infrastructure and well qualified local workforce.
Cash and liquids increase
Matsa improved its cash holdings during the September quarter by 275% to just over A$3 million. Along with the sale of the company's Mt Henry gold project (Western Australia) to Metals X (ASX:MLX), this brings the value of the company's cash and liquid assets to about $12 million during a time of accelerated development for both Siam and the Symons Hill project in WA.
Matsa conducted high-power EM surveys at Symons Hill during the quarter and detected a moderate strength conductor which coincides with a bedrock nickel anomaly in the corner of the project just six kilometres from the Nova-Bollinger nickel-copper discovery.
The company is planning to drill the conductor in the current quarter and follow up EM indicators to better define additional conductive targets.
The latest survey results at Siam are significant in that they demonstrate Matsa is able to identify consistent continuous IP responses below the known copper mineralisation received during its maiden IP program.
More specifically, the presence of moderate IP anomalies at shallow depth strongly supports Matsa's geological hypothesis about the depositing of more extensive copper sulphide mineralisation at depth.
With planning for diamond drilling of high priority anomalies currently underway and as a drill program gets closer, the work to date is elevating the probability of Matsa making a significant discovery at the project.
This will begin to resonate in share price momentum in the lead-up to drilling for this A$22 million-capped, tightly held company. The cash and liquid assets are such that it renders Matsa primed for drilling success and in the undervalued category.
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