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Matador Mining outlines growing Canadian gold story during Proactive virtual event

New chairman Ian Murray features in online company presentation about Cape Ray Gold Project in Newfoundland.

Matador Mining Ltd - Matador Mining outlines growing Canadian gold story during Proactive virtual event
The share price has increased from 9.5 cents in March to 29.5 cents this week

Matador Mining Ltd’s (ASX:MZZ) gold story focused on the Cape Ray project in Newfoundland, Canada, has been attracting plenty of attention reflected by an increase in share price from 9.5 cents on March 23 to 29.5 cents this week.

This story presented by new executive chairman Ian Murray, business development executive Adam Kiley and executive director Keith Bowles also attracted a positive response during a virtual event today arranged by Proactive.

Positive scoping study

Supporting the share price increases has been a positive scoping study which outlines 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.

The study is underpinned by a new, recut resource of 837,000 ounces at 2 g/t that allows for an underground component at two of the four deposits making up the Central Zone, maximising the economics of the project.

Gold production

MZZ will produce 484,000 ounces over a 7-year LOM through a 1.2 million tonnes per annum plant and receive an additional amount of around A$26 million in silver credits.

Average annual production is around 69,000 ounces with about 88,000 ounces annually produced in the first four years, and 44,000 ounces thereafter.

Pre-production capital and development costs total approximately A$167 million with underground development to cost around A$7 million in Year 3 and again in Year 5.

LOM sustaining capital, which includes pre-stripping on a number of pits, will total about A$40 million and AISC is expected to be in the region of US$776/ounce (approximately A$1,273/ounce).

New chairman

Another positive factor for MZZ has been the appointment of proven mining executive Ian Murray as executive chairman.

With an accumulated 25 years of industry experience, Murray has held leadership positions at Gold Road Resources Ltd (ASX:GOR), DRDGold Ltd (NYSE:DRD) as well as with the international ‘Big Four’ accounting firms.

While at Gold Road for more than 10 years he was instrumental in taking the company from early exploration through to the fully funded Gruyere Gold Project, which is forecast to produce around 300,000 ounces per year for more than 10 years in joint venture with Gold Fields Limited (NYSE:GFI).

He brings a wealth of financial, corporate, project development and operational experience to the board.

Price target of 38 cents

The appointment and scoping study prompted Perth-based financial services company Hartleys to reiterate its price target of 38 cents per share for Matador, highlighting upside to come.

Today’s MZZ presentation can be downloaded from the following link: https://www.dropbox.com/s/nk5gf4s47ltvj45/Matador%20Mining%20Investor%20Presentation%20and%20Q%26A.mp4?dl=0

Quick facts: Matador Mining Ltd

Price: 0.425 AUD

ASX:MZZ
Market: ASX
Market Cap: $71.41 m
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