Matador Mining Ltd (ASX:MZZ, OTCQX:MZZMF) delivered a strong September quarter and is well funded with A$17.2 million in cash as it accelerates exploration at its Cape Ray Gold Project in Newfoundland, Canada.
During the quarter, the company progressed its exploration program to expand known deposits and define new greenfield exploration targets across its large but under-explored landholding within the highly prospective Cape Ray Shear Zone.
Furthermore, environmental baseline studies are nearing completion, which will form the basis for the Environmental Impact Statement (EIS) which remains on track for completion and submission to both Federal and provincial regulators in the second half of 2022.
Brownfield drilling
Brownfield expansion drilling has delivered exploration success at Window Glass Hill Granite with highlight intersections including:
- 19 metres at 4.2 g/t gold, 6 metres at 1.0 g/t and 4 metres at 1.9 g/t.
- 8 metres at 5.1 g/t and 22 metres at 1.2g/t; and
- 4 metres at 3.6 g/t.
In addition initial infill drilling at the Window Glass Hill mineral resource is consistent with existing wider-spaced drilling and confirms multiple stacked loads near the surface, including:
- 4 metres at 4.0g /t gold, 3 metres at 3.1 g/t, 5 metres at 1.6 g/t and 2 metres at 3.1 g/t;
- 8 metres at 3.0 g/t, 17 metres at 1.4 g/t and 7 metres at 1.0 g/t;
- 2 metres at 8.0 g/t and 14 metres at 1.0 g/t; and
- 8 metres at 1.9 g/t.
Greenfield target areas
Matador's exploration team is following up on several other promising greenfield targets identified from the phase one heli-mag data.
Target Area One covers the majority of the existing mineral resources, with targets already identified at WGHG and Big Pond.
Target Area Two at Benton covers a 5-kilometre-long target which hosts elevated rock chip gold anomalies in boulders with peak gold values up to 191 g/t gold
In Target Area Three Matador’s backpack drill sampling crews commenced a broad first-pass surface till sampling program covering a large area of previously unexplored ground north of the Malachite Lake area.
Mobile sample preparation unit
Delivery by SGS Canada of a dedicated mobile sample preparation unit adjacent to the Matador core shed has resulted in a material reduction in assay turnaround times.
The updated ergonomic design of the core logging facilities combined with the newly installed independent sample preparation system has resulted in assay results being returned in five to six weeks compared to the Newfoundland average of eight to 10 weeks (or more).
This has allowed the exploration team to quickly assess auger results and make key decisions on diamond drilling far more effectively.
Priority target areas worked during the September 2021 Quarter, within Phase One heli-mag area.
Financial summary
Following a $16 million placement which was completed in June 2021, substantial shareholder notices were received from North American institutions, CI Financial (TSX:CIX) (7.76%) and Franklin Templeton (5.11%).
During the quarter, Matador spent A$3.9 million on its exploration activities at the Cape Ray Project
In addition, 3,256,250 unlisted options, exercisable at 23 cents with an expiry date of July 2, 2022, were exercised for proceeds of A$726,937.