Matador Mining Ltd (ASX:MZZ) executive chairman Ian Murray told the AGM today that the past 12 months has been transitional for Matador, as the company pursued the key objective of discovering sufficient gold resources to support annual production rates of around 100,000 ounces over an initial 10-year life of mine at Cape Ray in Newfoundland, Canada.
He said: “With an existing mineral resource of about 837,000 ounces of gold at 2 g/t and a positive scoping study, which outlined a possible initial seven-year mine life, with potentially strong economic returns, we are well-positioned to deliver on that objective.”
The company’s landholding at Cape Ray covers 120 kilometres of continuous strike in a proven, yet underexplored multi-million-ounce gold structure.
Murray said: “We are confident that this represents a considerable exploration opportunity.
“Our exploration strategy is targeting resource growth through a dual approach of brownfields and greenfields exploration.”
The brownfields exploration is concentrated on expanding the existing mineral resource at Window Glass Hill and Isle aux Morts, while greenfields exploration has identified 33 targets through a ‘fingerprinting’ methodology which integrates structural, geochemical and geophysical indicators.
Twelve of these targets are expected to be drill tested in the 2021 field season.
Murray said: “This approach has delivered success in 2020, with the recent Angus discovery, where 20 metres at 2.38 g/t gold from 85 metres (including 9 metres at 4.99 g/t) was intersected and extension drilling at Window Glass Hill saw intersections of 3.6 metres at 3.48 g/t from 9.4 metres and 5 metres at 1.41 g/t from 93 metres.”
During the year, the company bolstered its balance sheet through the completion of a share placement in July that raised A$8.7 million.
Murray said: “The shares were issued at a premium of around 40% to the then share price, which was achieved by utilising the Canadian charity flow-through shares scheme.
“To be one of the first companies in Australia to complete such a placement is testament to the Matador team.
“More importantly, we expect to be fully funded for the 2021 exploration season.”
Murray said the company’s highly capable board and management team, strong financial position, existing mineral resource of around 837,000 ounces of gold at 2 g/t, and a highly prospective greenfield exploration portfolio with more than 30 untested new targets positioned it well for the near-term.
He said: “Matador has consolidated the largest continuous landholding along the Cape Ray Shear, the majority of which has seen little to no drilling, and with the team and the funding in place, we are well-positioned to deliver the objectives we have set ourselves.”