Special report: Matador is off to a promising start at its Cape Ray Gold Project in Newfoundland, Canada, having already uncovered new zones of mineralisation – and it hasn’t even begun drilling.

This contributes to the company (ASX:MZZ) being in a good position to release an updated resource in the current quarter.

A recent re-sampling campaign of historical core has extended existing zones and identified new zones in five of the six holes at the Isle aux Mort prospect – where grades of up to 5.34 grams per tonne (g/t) were found.

Anything between 1.5g/t and 5g/t is generally considered a good grade, while above 5g/t is high grade.

Results included 18.4m at 5.34g/t and 9.2m at 4.56g/t.

Extended zones of mineralisation were also identified at the Window Glass Hill prospect, where sampling returned a hit of 7.9m at 2.56g/t.

Of the 41 previously drilled holes sampled so far, about 20 per cent returned intercepts that either extended existing zones or revealed new zones.

“These sampling results are encouraging in that we have been able to add new zones of mineralisation without drilling,” Managing Director Paul Criddle said.

“The core intervals sampled to date represent over 5200m of drilling and we have a significant amount left to catalogue, re log and potentially sample.”

Multi-million-ounce opportunity

Mr Criddle describes the Cape Ray Project, which is located in Newfoundland, as a “ready-made development story”.

The project already has a half-a-million-ounce resource, which he believes Matador is more than capable of eventually expanding to a multi-million-ounce inventory.

Since announcing it was acquiring the Cape Ray project in early April, Matador’s share price has advanced over 22 per cent to trade at around 30c.

“The team have managed to put together a very, very interesting land package that encapsulates 65km of continuous exposure to  the Cape Ray Shear,” Mr Criddle said.

“Now what that does is that gives us an extremely large land package along a regionally significant structure that has multiple high-grade gold occurrences along it.”

The Cape Ray project is located along the same Cape Ray Shear as the 3.2-million-ounce Valentine Lake Project owned by Marathon Gold and First Mining Gold’s Hope Brook mine, which historically produced 752,000 ounces.

Marathon Gold has been able to define its large resource in a reasonably short time-frame – about three or four years – starting from the same point the Cape Ray project is at now.

The area also hosts a number of high-grade gold discoveries, with grades of up to 213g/t uncovered by one company during grab sampling.

Matador’s strategy is to grow the Cape Ray resource to a multi-million-ounce base within the next three years. The company plans to start drilling in early August.


This special report is brought to you by Matador Mining.

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