Matador Mining Ltd (ASX:MZZ) is set to begin a 12,000-metre drilling campaign at the Cape Ray Gold Project in Newfoundland, Canada, targeting resource expansion and priority greenfield prospects.
The company's exploration strategy aims to grow the resource base to a size that would support a 10-year operation through brownfields expansion and new greenfield discoveries.
Mobilisation to the site is underway with road clearance and camp maintenance nearing completion.
New record high
Shares have hit a new record high of A$0.455 after being up as much as 14% intra-day.
A comprehensive review of the project’s exploration potential was completed following the 2019 field season.
Priority targets
This review identified priority brownfield and greenfield targets for this season’s work program:
Brownfields:
- Window Glass Hill resource extension and new targets; and
- Isle Aux Mort resource extension and new targets.
Greenfields:
- The Granites: granitic intrusion on the Cape Ray Shear two kilometres west of Window Glass Hill;
- Big Pond-Sleeper: under-explored area adjacent to The Granites; and
- Grandy’s Lake – Benton.
Target location map.
Focused on expanding resources
Executive chairman Ian Murray said the company’s strategy moving forward was to increase its resource base to a size that will support a 10-year operation.
“To achieve this, we have designed an exploration program that focuses on expanding the resources around our known deposits whilst systematically testing our vast greenfield package to improve and develop a high-quality pipeline of discovery projects into the future.
“Our major brownfield targets for 2020 are at Window Glass Hill and Isle Aux Morts.
“The company had success at Window Glass Hill last season with the endowment increasing by 75% at a discovery cost of only US$5/ounce.
“We are planning for similar extensional growth at Window Glass Hill this year, whilst also looking for success at Isle Aux Morts where we are embarking on the most significant exploration program since the early 1990’s.”
"Excited" by potential
He said while the brownfield program had the highest probability of adding to the resource base in the near-term, the greenfields potential along the 120-kilometre landholding on the Cape Ray shear system was the most exciting.
“While significant anomalism has been defined along the trend in high-grade soil and rock-chip geochemistry, there remains only limited drilling in most areas, demonstrating the vastly underexplored nature of the project.
“Through our systematic approach, we are excited by the likelihood of uncovering new discoveries into the future.”
Exploration activity schedule
Following a comprehensive tender review process, an initial drilling contract has been awarded to a single contractor with the rigs mobilising to site.
Improvement works to the site access road and the Window Glass Hill access trail, along with the refurbishment of the exploration camp post the winter closure, are all nearing completion.
A groundwater drilling program to support environmental and permitting requirements has also commenced.
Greenfields activities, including ground magnetic surveys and trenching, are scheduled to commence imminently.
The drilling program planned for this year’s field season comprises of:
- 3,000 metres of brownfields drilling at Window Glass Hill;
- 1,000 metres of brownfields drilling at Isle aux Morts;
- 1,000 metres of infill drilling at Isle aux Morts; and
- 2,000 metres of greenfields drilling.
Around 5,500 metres has also been assigned for the following activities:
- Extension drilling at Window Glass Hill and Isle aux Morts, infill drilling and some geotechnical drilling to support pit optimisation studies; and
- Further greenfields drilling depending on targeting success based on reconnaissance field activities.
Regional greenfield targeting
Matador is planning to complete further airborne geophysical surveys over the greater tenement area to generate new targets.
Areas of high interest will be targeted for “boots on the ground” work, in particular structural mapping which has proven to be successful in these types of gold systems.
Based on current cash reserves the company is fully funded for the 2020 and 2021 exploration seasons.