Matador significantly increases gold resource

By Jonathan Jackson. Published at Feb 4, 2020, in Mining

Matador Mining (ASX:MZZ) has today announced a significant increase in its gold Mineral Resource at its Cape Ray Gold Project, located in Newfoundland Canada.

Matador has announced an 18% increase in contained gold metal, following its 12,600 metre drilling program undertaken last year.

Matador’s tenure covers 80km of continuous strike along the highly prospective Cape Ray Shear. Within the package is a 14km zone of drilled strike which hosts a JORC resource of 1.2Moz Au (16.6Mt at 2.2g/t Au).

This is an underexplored tenure, with only a small portion of the 80km strike previously drilled. The current drilling program is part of a larger-scale exploration and project development program focused on unlocking the value in this considerable package.

Highlights of the program are extensive. The 18% increase equates to 1.2M oz Au and 3.9M oz Ag (16.6Mt at 2.2g/t Au and 7g/t Ag), with 55% of this resource classified in the Indicated category (650k oz Au at 2.9 g/t Au).

Matador’s major focus was at Window Glass Hill, which grew by 71% to 230koz Au (previously 134koz Au). The grade at Window Glass Hill also increased by 34% to 1.6g/t Au (previously 1.2g/t Au). Notably, 90% of the resource here is less than 100m from surface.

The discovery cost per oz at WGH was exceptionally low at a cost of US$5/oz (A$8/oz), a trend which continued throughout the campaign including at the PW deposit at the southern extension of the Central Zone. This deposit grew by 185% to 80koz Au (previously 28koz Au) with a discovery cost of just US$7/oz (A$10/oz).

The total discovery cost per ounce was US$12/oz ($18/oz) and was inclusive of all drilling during the 2019 exploration program including greenfield drilling.

Cape Ray Gold Project,  JORC 2012 Classified Resource Summary –Gold resource only.
Cape Ray Gold Project, JORC 2012 Classified Resource Summary –Gold resource only.

“Following the completion of the largest drill program at Cape Ray in more than 30 years, we are pleased to report the resource has grown to1.2 million ounces of gold and 3.9 million ounces of silver,” said managing director Keith Bowes.

“Importantly, this growth has not been to the detriment of the resource grade, as the total average grade remains at just over 2.2g/t Au.

“In addition to the increased resource, our regional exploration program has identified additional targets. Regional exploration is expected to form a more significant part of future exploration at Cape Ray.”

Drilling, structural mapping and high-grade rock chips samples have identified priority targets for the 2020 exploration program at WGH and the updated Mineral Resource will underpin the upcoming Scoping Study which remains on track to be released in late March.

Matador is currently in a trading halt, pending news of a capital raise to secure funds to be used towards its 2020 program.

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