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Matador Mining close to releasing Cape Ray Gold Project scoping study


The scoping study is expected to "show that we’ve got a very vanilla project that’s high grade, in a first-world jurisdiction and is going to a have a rapid payback," says director Adam Kiley.

Matador Mining Ltd - Matador Mining nears release of scoping study for Cape Ray Gold Project in Newfoundland

Quick facts: Matador Mining Ltd

Price: 0.445 AUD

Market: ASX
Market Cap: $70.24 m

Matador Mining Ltd (ASX:MZZ) is progressing with a scoping study for its Cape Ray Gold Project in Newfoundland, Canada, which is expected to be released in late March.

The company's executive director Adam Kiley will present at the upcoming Proactive CEO Sessions this month and said he wanted to outline the unique opportunities the project presents.

“The scoping study will show the market that we’ve got a very vanilla project that’s high grade, in a first world jurisdiction and is going to a have a rapid payback.”

The company’s exploration program in 2019 included 12,600 metres of drilling and resulted in an increase of the resource at the Cape Ray project by 18% to 1.2 million ounces.

Low discovery cost

The Window Glass Hill deposit was highlighted in the drilling program, growing by 71% to 230,000 ounces, up from 134,000 ounces with the grade increasing by 34% to 1.6 g/t as compared to 1.2 g/t.

Kiley said: “The drilling we did at Window Glass Hill was coming through at a discovery cost of just U$5 per ounce – which is one of the cheapest discoveries you could get.

“In the future exploration program for this season we’re going to continue drilling at Window Glass Hill because we believe the potential to expand it further is fantastic.”

Massively underexplored region

The company is focused on finding new greenfield deposits and has consolidated 80 kilometres of strike along the shear to progress its exploration plans.

Due to the project’s proximity to Marathon Gold Corp’s (TSE:MOZ) Valentine Gold Project, which includes a 4-million-ounce resource with 3 million from a single deposit, Kiley is confident of finding similar deposits in the massively underexplored region.

He said: “We’ll be going through smart, greenfields exploration and even if we don’t find a large single million-ounce deposit, we believe we’re already got a project (especially in the current gold environment) that will give an extremely quick payback.”

The company's holdings in the region around the Cape Ray Project

Perfect for open pit mining

Kiley said that the main point of difference with Window Glass Hill was that the mineralisation was generally around 40-60 metres from surface.

He said: “If you were to look at West Australian gold deposits for example, typically you’re going to have about 50 metres of overburden before you actually even get to the mineralisation.

“We’re consistently hitting mineralisation very close to surface."

Kiley said that normally in gold deposits the grade was thinner on the surface and blew out the lower you went, but Matador was finding the opposite with Cape Ray.

He said: “the highest-grade mineralisation is actually within the top 50 metres.

“If this project was anywhere else in the world it would have been mined.

"If it was in Western Australia it would have been mined, if it was in West Africa there’d be artisanal all over it, if it was in mainland Canada it would have been mined.”

High grades near surface

The same is true for the Central Zone deposit, which holds a resource of 810,000 ounces at 2.6 g/t with the top 100 metres an exceptionally high-grade for an open pit project.

Kiley said: “If you look at that top 100 metres, you’ve got just under 300,000 ounces at just under 4 grams per tonne.

“But even if you’re putting through 2.5 to 3 grams per tonne that’s going to rank as one of the highest-grade open pit projects in the world when the study comes through.

“When we get through to the scoping study, we’re not expecting significant mine development costs, we’re expecting to be hitting pay dirt straight away.”

Cape Ray deposits location

“Strong mining jurisdiction”

Kiley said the company was confident the upcoming scoping study would highlight the unique value of the Cape Ray project.

He said: “We are now fully funded – we just raised $5 million which is ideal given the state of global economies in the last few weeks.

“We’ve already established a solid resource, which is going to continue to grow, and is an exceptionally high-grade open pittable project.

“And we’re in a first world jurisdiction in Newfoundland, with massive support from the local and provincial government, a skilled local workforce on the island and power costs are extremely low for the project.”

Proactive CEO Sessions

Kiley will be presenting at Proactive’s CEO Session’s later this month, along with De Grey Mining Limited (ASX:DEG) (OTCMKTS:DGMLF) (FRA:DGD), Calima Energy Ltd (ASX:CE1) and Nexus Minerals Ltd (ASX:NXM).

Register now for the CEO Sessions

Sydney event, Monday, March 23

Melbourne event, Tuesday, March 24

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