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Matador Mining likely to discover a brand new +1 million ounce discovery at Cape Ray: Canaccord Genuity

Canaccord analysts Paul Howard and Tim McCormack believe the real prize of a brand new + 1 million ounces discovery at the company’s Cape Ray Gold Project remains likely in 2021.

Matador Mining Ltd - Matador Mining 'likely' to discover a brand new +1 million ounce discovery at Cape Ray according to Canaccord Genuity
On-ground exploration work at Cape Ray will likely recommence after the March quarter 2021.

Matador Mining Ltd’s (ASX:MZZ) recent report of a new lode emerging at Window Glass Hill (WGH) at its Cape Ray Gold Project in Canada has boosted its potential in the eyes of Canaccord Genuity.

Off the back of the recent drill results which uncovered a new high-grade zone 15 meters below the current 232,000 ounce at 1.6 g/t gold resource, Canaccord stated: “In 2021, we expect MZ to grow the existing 837,000 ounce resource, but the real prize of a brand new, +1 million ounce discovery remains likely in our view, along MZZ’s extensive 120 kilometre strike of tenure.

“Our price target (risked NPV10%) is unchanged at A$0.80/share.

“We maintain our SPECTULATIVE BUY rating.”

WGH could yield more

Assays are pending for the bottom portion of the holes, but a new lode is emerging, with intercepts from within the current resource shell including:

  • 10.5 metres at 2.4 g/t from 59 metres;
  • 1 metre at 5 g/t from 77 metres; and
  • 7.1 metres at 6.9 g/t from 119 metres.

Assays for the hole are only partially returned, with results from 157 metres to 400 metres (end of hole) still  to come; but a new lode(s) could materialise and extend the 2 metres at 6.8 g/t from 154 metres that remains open at the bottom of the assayed part of the hole.

“Drilling demonstrates upside”

Canaccord said: “WGH is the second largest deposit at the 837,000 ounce Cape Ray Gold Project in Newfoundland, Canada, and we previously viewed it as supplying the consistent base feed in the latter half of the seven year mine life as outlined in the 2020 scoping study.

“In our view, it is very encouraging to see further growth opportunities at WGH.

“WGH appears to be a series of stacked lodes/vein system, so further lodes at depth are possible, with this latest hole demonstrating this upside.”

Cross section of new intercepts at WGH; not assays pending for the bottom of hole

Angus continues to grow

Another result has also been returned from Angus (7 metres at 1.2 g/t from 76 metres) which has pushed the footprint a further 50 metres to the east.

Canaccord said the company is still unravelling the mineralisation controls on this new discovery and will continue to unlock its secrets in 2021.

Looking forwards

Drill results are expected shortly for the remaining 14 holes not yet reported from the 2020 field season with planning for the 2021 field season already underway.

On-ground exploration work at Cape Ray will likely recommence after the March quarter 2021.

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Matador Mining drills its best hole yet at Cape Ray

Matador Mining Limited's (ASX:MZZ) Ian Murray tells Proactive's Andrew Scott they've hit 18 metres at 11 g/t gold and 19 metres at 4.6 g/t gold at the Cape Ray Gold Project in Newfoundland, Canada. He says the assay results continue to demonstrate the prospectivity of the Cape Ray Gold Project.

on 2/2/21

3 min read