Up 9%, the Matsa (ASX:MAT) share price is booming today. Here’s why

The Matsa Resources Limited (ASX: MAT) share price is surging today after the company started drilling at its Devon Gold Project.

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Monadelphous share price rio tintoA happy miner in front of a massive drilling rig, indicating a share price lift for ASX mining companies

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The Matsa Resources Limited (ASX: MAT) share price is surging today after the company started drilling at its Devon and Lake Carey gold projects.

Matsa shares are trading 9.2% higher at 8.3 cents at the time of writing, recovering on losses since late April.

Matsa engages in mineral exploration, focused on gold, nickel, iron, and copper ore assets across Australia and Thailand. Lake Carey is in Western Australia’s Goldfields-Esperance region.

Matsa’s new drilling project at Lake Carey

Matsa has started reverse circulation drilling at its Devon and Lake Carey projects, boring holes down to 4,000 metres on the first of six overall drilling targets. The company is looking for additional gold mineralisation to “grow its resource base” in the Devon area.

The Matsa share price has been struggling with no recent impressive gold assays at Lake Carey.

These are additional drilling targets in the Devon project after what the company deemed “highly successful” 2020 drilling programs. The company noted three days ago that soil sampling defined new targets at Devon.

The company said this drilling program was designed to “test the mineralised structures” as interpreted from Matsa’s recent surveys and sampling projects. The targets were defined from soil and rock chip geochemistry and geological mapping. 

About Matsa’s Lake Carey project

The Devon region is just one part of the overall Lake Carey Gold Project, comprising Matsa’s Red October, Fortitude and Devon mines. The area contains a “significant number of historic gold workings”, according to the company.

Matsa has focused recent surface drilling on the Devon Pit, Olympic and Hill East prospects. In 2020, the company announced high-grade drilling results from its exploration at the underground Red October gold mine, which saw the Matsa share price rise above 16 cents. However, it has fallen steadily since then.

The company is currently planning to build its own processing plant in the region to lower eventual pipeline costs.

Matsa share price snapshot

The Matsa share price has been on a downwards trajectory since the company recorded its high-grade gold results nearly a year ago. It hasn’t come close to recording highs near its 33 cent price back in 2013 in the past 6 years and is currently at a decade-low price point. 

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Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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