Special report: Matador Mining’s very first round of drilling at its Cape Ray project in Canada is proving extremely fruitful with the delivery of more shallow, high-grade gold hits and extensions to mineralised zones.

“These are further strong results from our inaugural drilling campaign, as all but one drill hole (from the 22 assay results received) has intersected gold mineralisation,” managing director Paul Criddle said.

“This is pleasing as it indicates we remain on track with our target of this program of growing our existing JORC resource of 750,000 ounces of gold.”

Extensional and infill drilling at the 04 deposit has returned high grades of up to 13.25 grams per tonne (g/t).

Anything over about 5g/t is generally considered high-grade.

“The results from the 04 Zone provide validation and extension of the deposit with a high-grade tenor observed in widths in line with the resource,” Mr Criddle explained.

“We also note the grade of the assay results are higher than that of the current resource at this deposit, being 1.6g/t gold.”

Matador's new Cape Ray gold project in Newfoundland, Canada. Map: Matador
Matador’s new Cape Ray gold project in Newfoundland, Canada. Map: Matador

The 04 deposit is the largest deposit identified to date, with a current resource of 242,622 ounces, and is located in the Central Sector of the Cape Ray project.

Meanwhile, drilling at the Isle aux Morts deposit (Northern Sector), has proven the mineralisation continues with wide hits of up to 27.8m at 1.18g/t gold and higher grades of up to 3.72g/t.

“Isle aux Morts is an early stage, however higher-grade deposit (resource grade 3g/t gold),” Mr Criddle said.

“Results received are encouraging, as significant widths, were encountered, indicating the possibility to expand on volume and inventory at this deposit further.”

The Cape Ray project has a JORC resource of about 13.4 million tonnes at 1.75g/t gold and 6.3g/t silver containing 750,000 ounces of gold and 2.7 million ounces of silver.

The resource is hosted on only a small central portion, totalling about 3km of the consolidated 65km of highly prospective ground along the Cape Ray Shear.

The 4000m, 36-hole drilling program has now been completed and Matador will report further results from the other targets in the coming weeks.

Significant gold potential

Matador (ASX:MZZ) is confident the Cape Ray project will eventually host a multi-million-ounce gold inventory.

Less than 3km of the 65km strike has been drilled so far, and high-grade gold occurrences have been observed along trend.

The company completed the acquisition of the Cape Ray project in early July, and even before it started drilling in mid-August it had already uncovered new zones of mineralisation that led to an increase in the resource.

The Cape Ray project is located along the same Cape Ray Shear as the 4.2-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.



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