Matador quick off the mark with maiden gold resource in Canada; shares jump 14pc
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Special report: Less than three weeks after Matador Mining uncovered new zones of mineralisation at its prospective Cape Ray Project in Newfoundland, Canada it has delivered a first resource of 750,000 ounces of gold and 2.7 million ounces of silver.
The maiden resource is 13.35 million tonnes at 1.75 grams per tonne (g/t) gold and 6.3g/t silver.
Matador (ASX:MZZ) shares gained 14 per cent to an intraday high of 35.5c before closing at 32c.
Notably, 56 per cent, or 423,000 ounces, of the resource is already located in the higher confidence indicated category.
Mineral resources are categorised in order of increasing geological confidence as inferred, indicated or measured.
There is also a higher-grade component of 3.3 million tonnes at 4g/t containing 421,000 ounces of gold.
“This maiden JORC 2012 compliant resource is a significant milestone for the company as we prepare to commence with our maiden drill program to continue exploring this productive shear hosted gold system,” Managing Director Paul Criddle said.
JORC refers to the mining industry’s official code for reporting exploration results, mineral resources and ore reserves, managed by the Australasian Joint Ore Reserves Committee.
“Fifty-six per cent of the resource base has been classified as indicated resource within the maiden resource, which positions the project well to further grow the resource with confidence as we progress towards developing a world class mineral province,” Mr Criddle said.
And there is also potential for the resource to grow much bigger given it remains open in all directions.
Matador says there is significant scope for quick expansion on strike and at depth with drilling to begin immediately.
Additional mineralisation has also been identified in the sampling of previously untested historical core and has not yet been included in the resource.
Matador has defined an initial exploration target of 30 million to 36 million tonnes at between 1.4g/t and 2.4g/t for 1.3 million to 2.4 million ounces for the Cape Ray Project.
The target is limited to only extensional areas surrounding current resources (23km of strike) and doesn’t include the remaining 42km of relatively untested portions of the Cape Ray Shear.
Mr Criddle describes the Cape Ray Project, which is located in Newfoundland, as a “ready-made development story”.
Matador’s strategy is to grow the Cape Ray resource to a multi-million-ounce base within the next three years.
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.
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.
Activities at the Cape Ray Project have ramped up considerably in the last month.
Two soil geochemical survey teams are currently on site and undertaking a comprehensive sampling program with the aim of defining additional drilling targets.
Matador will begin its maiden 4000m drilling program in the next week with the goal of extending existing zones of mineralisation.
The company expects to release an upgraded resource in the final quarter of this year.
This special report is brought to you by Matador Mining.
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