- Matador follows a strategy of expanding mineral resource to support the proposed gold operations producing 100,000 oz a year gold over the initial 10 years of life of mine at the Cape Ray gold project
- Matador is advancing on gold resource development by inculcating brownfield as well as greenfield exploration development. The Company has identified 12 highest priority targets which are scheduled to be tested in 2021.
- Matador has discovered a new gold deposit (Angus) at the Cape Ray gold project.
- The board and management team have now been strengthened. The appointment of Warren Potma has been appointed as the Exploration Manager.
ASX-listed gold explorer Matador Mining Limited (ASX:MZZ) has been focusing on the strategy to discover enough mineral resource to support the proposed production rates of ~100,000 ounces gold a year over the initial 10 years of life of mine at the Cape Ray gold project.
The company organised its Annual General Meeting on 18 November 2020 during which Chairman Ian Murray highlighted the achievements and the goals set for Matador.
Cape Ray Gold Project stretches over 120 kilometres of strike in the renowned mineralisation zone with underexplored multi-million gold structure. Matador considers that the gold project offers substantial exploration opportunity.
The Chairman further stated that the existing mineral resource of 837,000 ounces of gold at 2 g/t Au and a successful scoping study highlight a possible initial economic mine life of 7 years with strong potential to generate economic returns.
The exploration strategy follows dual approach utilising both greenfield and brownfield exploration for resource growth. The greenfield exploration has identified 33 targets using “fingerprinting” method that assimilates the structural, geochemical and geophysical indicators. The most recent discovery of Angus marks the first significant discovery in over two decades.
The brownfield exploration targets to add mineral resource at the Window Glass Hill and Isle aux Morts prospects. The ongoing drilling campaign is extending mineralised area across Window Glass Hill and Isle aux Morts.
Recently, drilling of 4,200 metres from the planned 10,000-metre drilling campaign has been completed. The assay results for 14 holes are being analysed at the laboratory, while the results for the received samples are highly encouraging.
Drilling results for Angus and Window Glass Hill Source: Matador Mining ASX Update 11 November 2020
The recent Angus discovery is one of the first greenfield discoveries in the last 20 years. The intersections at Angus revealed a third kind of mineralisation on the project. The drilling at Angus has expanded the mineralised footprint to at least 400 x 300 metres.
Notable assay results on Angus included:
- CRD143 - 2m at 2.5g/t Au from 21m
- CRD141 - 14m at 0.35g/t Au (incl. 1m at 1.86g/t Au) from 21m
- CRD140 - 1m at 1.7g/t Au from 23m
Window Glass Hill
The ongoing drilling campaign has also extended the brownfield Window Glass Hill to the south-west from the existing prospect boundary.
New intersections results:
- CRD134: 42m at 12.43 g/t Au from 25.9m
- CRD135: 5m at 1.44 g/t Au from 95m
- CRD133: 7m at 0.36 g/t Au (incl. 0.89m at 1.93 g/t Au and 0.31m at 3.05 g/t Au) from 28m
Isle aux Morts (IAM)
Matador has planned 16 holes on the prospect to extend the mineral resource base. The reported Inferred Mineral Resource of the prospect is 60koz with a grade of 2.4 g/t Au.
Assay results of two holes:
- CRD152: 7m at 0.98 g/t Au (incl. 1.64mat 2.15g/t Au) from 90m—Hole
- CRD153: 4m at 0.98 g/t Au (incl. 1.28mat 4.8g/t Au) from 71m—Hole
Strengthening Board and Management Team
Mr Ian Murray joined the Board in May, and subsequently Justin Osborne, Mick Wilkes and Nicole Adshead-Bell joined the team as Non-Executive Directors. Their expertise in the exploration and development of gold assets in different geographies has enhanced the board capabilities and envisions to lead Matador towards gold production in the future.
Matador has appointed Warren Potma, an expert in greenfield exploration discovery, as its new Exploration Manager. Mr Potma, in his short stint at Matador, has channelised the exploration activities to expand the mineral resource base.
Well-Funded for the 2021 Exploration Season
Matador has successfully raised $8.7 million to support its ongoing exploration activities at the Cape Ray project. The funds were raised via a placement involving the issue of 21.4 million shares at a price of $0.405 per share.
The shares were issued at a premium of 44.5% to the 15-day VWAP during the month of July this year. Matador is one of the first companies in Australia to achieve such a tremendous feat by completing such a placement. The company expects to be fully funded for the 2021 exploration season.
Matador has been successful in consolidating largest continuous landholding along the Cape Ray Shear which remains untested in majority areas, and with the funding and team in place Matador would continue to deliver values for the shareholders.
Matador closed the day trade at $0.355 a share (11:19 AM AEDT) with a market capitalisation of $60.36 million on 20 November 2020.