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Matador puts exploration

on charge

lthough access to more geologists “That is what ex-
Awould be handy, Matador Mining Ltd cites us. We want
is much better placed for this field season to do that regional
in Newfoundland, Canada. greenfields explora-
A cash balance of $8 million (to Decem- tion; it was that ap-
ber 31) and a steady stream of options to proach which led to
be exercised will keep Matador exploring the Gruyere discov-
at the Cape Ray gold project, where in ery. Warren Potma
October the first greenfields discovery in is our exploration
more than 20 years was made. The An- manager and a very
gus discovery – 12m @ 3.81 g/t gold from good exploration ge-
85m – was made 1km south-west of the ologist. He has iden-
4.7mt @ 1.6 g/t for 232,000oz (inferred) tified over 30 targets
Window Glass Hill deposit. already. The first
Angus was found amid a 12,500m drill- thing we are going to
ing campaign which also delivered brown- do is fly a big aero-
fields expansion and definition at Window mag programme
Glass Hill and Isle Aux Morts, while the across the tenement
first consolidated approach to greenfields at a very close 25-
exploration across Matador’s 120km land 30m spaced lines to
package has delivered 33 new targets. give us very good
Of the new targets identified, 12 have mag images of the
been prioritised for drilling in the next 12 targets,” Murray
months. said.
The first two new targets have inter- “We have auger
sected gold mineralisation and put an drill rigs we have
added spring in the step of Matador ex- built for first pass
ecutive chairman Ian Murray ahead of drilling through the
further drilling results to be announced transported material;
from the 2020 field season. we are getting dia-
As promising as last year was from an mond samples from
exploration perspective - 10,500m of dia- the top of the fresh,
mond drilling was completed - resource which will help iden-
drilling at Cape Ray only started in August tify new targets and Ian Murray
as Matador came to terms with being ac- then we will follow
tive in a COVID environment. the best ones up with diamond drilling.” 1-4 (LOM: 484,000oz @ 2 g/t over seven
Murray said the company was initially Matador has two diamond rigs at its years).
stifled by COVID, however, Matador has disposal, with the plan at Cape Ray to drill A post-tax NPV of $196 million and IRR
adapted and is aware of protocols needed until late November. of 51% were among the highlights, which
to keep business rolling in Newfoundland. In the meantime, the company will con- also included AISC of $1,118/oz, capital
Dual exemptions which allow mobi- sider drilling through the winter as well. cost of $139.5 million to be repaid in 1.25
lisation of its people in and out of both “Rigs are available…the challenge con- years based on a $US1,850/oz gold price.
Newfoundland and Canada itself means tinues to be access to skilled exploration While Matador starts to look at tighten-
grander ambitions for Matador in 2021. geologists. New Found Gold [Corp] are ing outcomes of Cape Ray in the pending
“We aim to be on the ground in late doing 100,000m drilling, Marathon Gold PFS, Murray has no doubt there is also
March and drilling in April,” Murray told [Corp] is committing to exploration to- more gold to be found.
Paydirt. gether with their final project studies [at “If you look at the belt there is 4 moz
“We are starting earlier in the season Valentine], while we will increase our ex- gold north of our tenements which is
and the likelihood is that we will have a ploration push. There is increased explo- owned by Marathon Gold and we have
bigger programme this year. The winter ration on mainland Canada as well, so all our 837,000oz at the southern end of the
has been milder than previous years al- this activity means there are only so many belt; the gap in the middle is totally un-
lowing us on-ground access earlier.” geologists going around,” Murray said. tested,” Murray said.
Historically, drilling at Cape Ray has Once drilling is wrapped up for 2021, “It is the same shear zone, same struc-
been focused on a mere 15km strike ex- Matador plans to start a PFS on Cape ture; it just hasn’t had that exploration
tent of Matador’s 120km ground holding. Ray. A scoping study on Cape Ray last testing.”
Furthermore, just 20 holes have been year indicated the potential for produc- – Mark Andrews
drilled at the project. tion of 88,000oz @ 2.6 g/t gold in years

aUSTRaLIa’S PaYDIRT aPRIL 2021 Page 45