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Matador Mining outlines strong progress at high-grade Canadian gold project during virtual conference

A newly released scoping study for the Cape Ray project provides a solid platform for future growth as a standalone mining and processing operation.

Matador Mining Ltd - Matador Mining outlines strong progress at high-grade Canadian gold project during virtual conference
To date the Cape Ray Gold Project in Newfoundland has a 1.2-million-ounce resource

Matador Mining Ltd (ASX:MZZ) executive director Adam Kiley outlined the company’s progress at its 1.2-million-ounce Cape Ray Gold Project in Canada to investors during the NWR Virtual Small Cap Resources Conference this week.

A feature of the presentation was Kiley discussing the recently completed positive scoping study for the Newfoundland project which provides a solid platform for future growth as a standalone mining and processing operation.

To view the presentation please visit the following link to register: https://us02web.zoom.us/webinar/register/WN_c1dRcPiVTWqobeR_IH1n1A

Positive financial metrics

The preliminary economics indicate the project has positive financial metrics over an initial mine life of seven years with capital payback during the first 1.75 years of the project’s life.

This decreases to 1.5 years based on the current gold spot price of US$1,700 and the first year of production includes a 6-month ramp-up to full throughput capacity.

Kiley also discussed the study and project with Proactive this week.

"Exceeded expectations"

Of the study, executive director Keith Bowes said: “The results … were an excellent achievement for the company and exceeded expectations in many regards.

“The most important outputs we believe for any resource project is a strong IRR (post-tax - 51%), rapid payback (1.75 years) as well as low operating costs (US$776/ounce).

 “With excellent outcomes in each of these areas, which strengthen further when the current spot gold price is applied, we believe the Cape Ray Project is well on track to become a gold operation in the future.

“The key driver for these robust returns is the exceptional high-grade open pit ore that is mined and processed during the first two years (2.72 g/t gold) and first four years (2.5 g/t gold) of production, meaning the Cape Ray Project ranks as one of the highest grade open pit operations."

Bowes also outlined the project during a recent Coffee with Samso session:

The primary objective for the company is to expand the resource base in order to then extend the life of mine, with a focus on shallow open pit deposits that support the overall objective of being one of the highest-grade open cut operations in the world.

Next steps

Plans for the next field season:

  • Extensional drilling around the current deposits (specifically Window Glass Hill and Isle aux Mort) to expand the know resources (brownfield);
  • Infill drilling to upgrade the inferred resources to measured and indicated status;
  • Greenfield target development utilising ground magnetic surveys, soil sampling, mapping and trenching; and
  • Assuming successful greenfield targets are identified, drilling will be undertaken.

The company also plans to release a pre-feasibility study in 2021.

Quick facts: Matador Mining Ltd

Price: 0.37 AUD

ASX:MZZ
Market: ASX
Market Cap: $46.03 m
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