Next Investors logo grey

Matador significantly increases gold resource

Published 04-FEB-2020 10:52 A.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Matador Mining (ASX:MZZ) has today announced a significant increase in its gold Mineral Resource at its Cape Ray Gold Project, located in Newfoundland Canada.

Matador has announced an 18% increase in contained gold metal, following its 12,600 metre drilling program undertaken last year.

Matador’s tenure covers 80km of continuous strike along the highly prospective Cape Ray Shear. Within the package is a 14km zone of drilled strike which hosts a JORC resource of 1.2Moz Au (16.6Mt at 2.2g/t Au).

This is an underexplored tenure, with only a small portion of the 80km strike previously drilled. The current drilling program is part of a larger-scale exploration and project development program focused on unlocking the value in this considerable package.

Highlights of the program are extensive. The 18% increase equates to 1.2M oz Au and 3.9M oz Ag (16.6Mt at 2.2g/t Au and 7g/t Ag), with 55% of this resource classified in the Indicated category (650k oz Au at 2.9 g/t Au).

Matador’s major focus was at Window Glass Hill, which grew by 71% to 230koz Au (previously 134koz Au). The grade at Window Glass Hill also increased by 34% to 1.6g/t Au (previously 1.2g/t Au). Notably, 90% of the resource here is less than 100m from surface.

The discovery cost per oz at WGH was exceptionally low at a cost of US$5/oz (A$8/oz), a trend which continued throughout the campaign including at the PW deposit at the southern extension of the Central Zone. This deposit grew by 185% to 80koz Au (previously 28koz Au) with a discovery cost of just US$7/oz (A$10/oz).

The total discovery cost per ounce was US$12/oz ($18/oz) and was inclusive of all drilling during the 2019 exploration program including greenfield drilling.

Cape Ray Gold Project,  JORC 2012 Classified Resource Summary –Gold resource only.
Cape Ray Gold Project, JORC 2012 Classified Resource Summary –Gold resource only.

“Following the completion of the largest drill program at Cape Ray in more than 30 years, we are pleased to report the resource has grown to1.2 million ounces of gold and 3.9 million ounces of silver,” said managing director Keith Bowes.

“Importantly, this growth has not been to the detriment of the resource grade, as the total average grade remains at just over 2.2g/t Au.

“In addition to the increased resource, our regional exploration program has identified additional targets. Regional exploration is expected to form a more significant part of future exploration at Cape Ray.”

Drilling, structural mapping and high-grade rock chips samples have identified priority targets for the 2020 exploration program at WGH and the updated Mineral Resource will underpin the upcoming Scoping Study which remains on track to be released in late March.

Matador is currently in a trading halt, pending news of a capital raise to secure funds to be used towards its 2020 program.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.