Matador acquires 37pc more ground as Newfoundland nearology runs hot
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Matador Mining (ASX:MZZ) increases its landholding in the red hot gold jurisdiction of Newfoundland, Canada, to 750sqkm following a major review of prospective ground around its flagship 840,000oz Cape Ray project.
Newfoundland has become one of the most exciting jurisdictions for gold exploration in North America, largely due to the recent high-grade ‘Queensway’ gold discovery by TSX-listed New Found Gold.
Since listing in August last year, New Found has rocketed ~675% from $1.54 to $11.96 per share on insane intersections at Queensway like 26.5m at 146g/t gold.
This success has put a spotlight on Newfoundland’s gold prospectivity, resulting in a staking rush and a significant increase in exploration activity.
While Matador believes it already has one of the most attractive and under-explored packages in Newfoundland, the exploration team is always assessing new opportunities, chairman Ian Murray says.
“This work has led to the identification of two new blocks to the West of our tenement holdings that we believe could host large-scale cross structures to the Cape Ray Shear,” he says.
“Work on these areas will form part of this season’s exploration program.”
The newly acquired ‘Hermitage’ project, east of Cape Ray, is on a similar structural setting to Queensway, as well as Labrador Gold Corp’s (TSXV: LAB) Kingsway Project.
This region remains underexplored, Murray says.
“The Hermitage Project is in a new region of Newfoundland for Matador, where we see excellent potential and believe it has been overlooked historically due to the modest cover (estimated around 20 metres),” he says.
“This ground was identified by Matador’s principal geologist Crispin Pike, a local Newfoundlander who recently joined the company, based on assessment of historic early-stage exploration work and regional structural architecture.
“Both tenement acquisitions are aligned with the company’s strategy of building a sustainable pipeline of highly prospective gold targets throughout Newfoundland.”
A review of historical work, which includes geochemistry, airborne magnetics and electromagnetics is underway.
This article was developed in collaboration with Matador Mining, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.