Under the terms of the five-year deal, ore from Red October will be processed at the Sunrise Dam complex, AngloGold Ashanti's 3.8Mt/y mill in the north-eastern goldfields of Western Australia.

Whilst the terms of the agreement remain confidential, the costs and revenues of the ore purchase agreement are entirely consistent with the parameters applied in the previously published mining studies.

Neither company released the financial details of the transaction, but Matsa noted that it provides a long-term processing option for the ore from Red October - located about 60km from Sunrise Dam. Matsa will transport the ore to the mill.

"The ore purchase agreement is based on previous successful relationship between Matsa and AngloGold Ashanti Australia, and underpins the detailed MoU between the companies," Matsa officials said.

"Matsa has [also] previously successfully delivered ore from its Fortitude and Red Dog gold mines to Sunrise Dam, and is therefore confident in the outcomes of the ore processed there."

First ore to Sunrise Dam is expected by the end of June.

Red October, which has open-pit and underground components, is located in the Laverton Greenstone Belt (LGB).