Matador Mining Ltd (ASX:MZZ) enjoyed a productive 2019 with an increase in mineral resources at its Cape Ray Gold Project in Newfoundland, Canada, and has big plans for 2020.
Matador executive director Adam Kiley will present at the upcoming Proactive CEO Sessions, discussing the companys exploration program in 2019 which included 12,600 metres of drilling and resulted in an increase of the resource at the Cape Ray project by 18% to 1.2 million ounces.
Kiley will discuss how the updated mineral resource will underpin the scoping study which remains on track to be released in late March.
Window Glass Hill[hhmc]
Exploration last year highlighted the stacked nature of the Window Glass Hill (WGH) deposit, which grew by 71% to 230,000 ounces, up from 134,000 ounces.
The grade also increased by 34% to 1.6 g/t as compared to 1.2 g/t.
Best drilling results included 5 metres at 3.5 g/t from 77 metres, 3.8 metres at 3.2 g/t from 4 metres, 29 metres at 1.9 g/t from 64 metres, 21 metres at 1.3 g/t from 38 metres and 22.8 metres at 1.1 g/t from 58 metres.
The discovery cost per ounce at WGH was exceptionally low at a cost of US$5/ounce (A$8/ounce).
2020 exploration plans[hhmc]
Matador has identified three key areas at WGH aimed at delivering further resource growth in 2020.
The first area includes two step-out drill targets identified from recent drill results which highlighted the potential for further resource growth.
A second area includes three brownfield targets identified through structural mapping, high-grade rock chips as well as historical drill results.
Exploration here will initially include additional mapping and sampling prior to reconnaissance drilling later in the season.
Matador is confident in the potential of these targets, given the similarities to the current resource surface geology.
The third area is untested greenfield potential in the southern portion of the WGH granite deposit and this area stretches for around 2 kilometres of potential strike.
Exploration targets for 2020
Central Zone deposit[hhmc]
Central Zone is the most advanced project at the Cape Ray project, hosting a JORC resource of 810,000 ounces at 2.6 g/t.
The company stepped out to the south of the existing resource at PW and in hole CRD052 intercepted 16 metres at 3.1 g/t from 148.2 metres.
As such, the PW deposit grew in 2019 by 185% to 80,000 ounces (previously 28,000 ounces) with a discovery cost of just US$7/ounce (A$10/ounce).
The company considers results from deeper interpreted structural trend-extents around the Central Zone encouraging as they demonstrate it is a multi-lode system.
Whilst the strategy moving forward is to target the development of an open pit operation, these high-grade extensions show the potential for an underground operation in the future.
Scoping study underway[hhmc]
Matador has started work on a scoping study to assess gold production at the Cape Ray project, primarily the potential for a high-grade, shallow open-pit gold operation.
Global engineering company DRA was appointed to lead the study which is targeting high-grade, shallow gold mineralisation with processing through a conventional carbon-in leach facility with annual throughput of 1 million to 1.5 million tonnes.
Given its size and classification, the resource at Central Zone is expected to be the core of future development studies.
The other deposits within the project – WGH, Big Pond and Isle aux Morts – are all relatively close to Central Zone with maximum distances of up to 7 kilometres and most within 5 kilometres.
The company has also appointed Orelogy Consulting to develop the mining studies for the project aimed at defining plant capacity as well as mine optimisation, mine design and scheduling on the updated mineral resource.
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