Matador Mining Ltd (ASX:MZZ) (OTCMKTS:MZZMF) (FRA:MA3) has boosted its landholding across a major Newfoundland gold region following a strategic review.
The gold exploration company upped its territory by 37% to cover 750 square kilometres of the Canadian island after it evaluated prospective tenements outside its Cape Ray Gold Project.
Specifically, two new blocks to the west of the Cape Ray asset caught Matador’s eye and were added to the company’s tenement package.
The ASX-lister also picked up the Hermitage Project, a regional gold exploration asset that runs along 27 kilometres of continuous strike.
A map showing Matador's new gold exploration tenements.
Newfoundland shows promise
Matador Mining executive chairman Ian Murray said: “Newfoundland has become one of the most exciting jurisdictions for gold exploration in North America. Whilst we believe we already have one of the most attractive and under-explored packages in Newfoundland, our exploration team is always assessing new opportunities.
“This work has led to the identification of two new blocks to the west of our tenement holdings that we believe could host large-scale cross structures to the Cape Ray Shear. Work on these areas will form part of this season’s exploration program.
“The Hermitage Project is in a new region of Newfoundland for Matador, where we see excellent potential and believe it has been overlooked historically due to the modest cover (estimated around 20 metres).
“Both tenement acquisitions are aligned with the company’s strategy of building a sustainable pipeline of highly prospective gold targets throughout Newfoundland.”
Cape Ray expansion and Hermitage Project
Matador’s latest upgrade at Newfoundland has added 127 square kilometres of new land to its Cape Ray Gold Project.
At Block 1, northwest of the project’s Central Zone and Window Glass Hill deposits, the explorer has identified a major mineralisation structure.
To get a better understanding of the area, Matador aims to complete heli-magnetic surveys and multi-element geochemistry during its 2021 exploration program.
Meanwhile, Block 2 lies immediately north of Cape Ray’s Malachite Lake prospect, where a northeast-trending shear has been identified.
The ASX-lister will likely follow up with heli-magnetics this year, while geochemistry studies are slated for 2022.
Finally, at its new Hermitage asset, Matador will undertake a review of historical exploration and this work included geochemistry, airborne and electromagnetic surveying.