THE DRILL SERGEANT: Matador Mining (ASX: MZZ) increased the Mineral Resource at the company’s Cape Ray gold project in Newfoundland, Canada.
Matador Mining delivered the increase on the back of drilling carried out at Cape Ray during 2019.
The Resource at the Cape Ray project increased by 18 per cent, growing to 16.6 million tonnes at 2.2 grams per tonne gold and 7g/t silver for 1.2 million ounces of gold and 3.9 million ounces of silver.
Just over half of this resource, 55 per cent, is classified in the Indicated category (650,000 ounces of gold at 2.9g/t gold)
Matador explained its major focus for the 2019 exploration program was at the Window Glass Hill deposit (WGH), which grew by 71 per cent to 230,000 ounces of gold (previously 134,000 ounces of gold).
The grade at WGH also increased by 34 per cent to 1.6g/t gold (previously 1.2g/t gold).
Drilling, structural mapping and high-grade rock chips samples taken by Matador have identified priority targets for the company’s 2020 exploration program at WGH.
Matador indicated the updated Mineral Resource will underpin an upcoming Scoping Study, which is scheduled for release in late March.
“Following the completion of the largest drill program at Cape Ray in more than 30 years, we are pleased to report the resource has grown to 1.2 million ounces of gold and 3.9 million ounces of silver,” Matador Mining executive director Keith Bowes said in the company’s announcement to the Australian Securities Exchange.
“Importantly, this growth has not been to the detriment of the resource grade, as the total average grade remains at just over 2.2 grams per tonne gold.
“Notably, at Window Glass Hill, which saw the most significant growth in resource size, the grade of this deposit also increased significantly by approximately 34 per cent.
“Window Glass Hill is our second largest deposit and will be an important part of the development plans going forward.
“It is also very pleasing to note that the discovery costs at Window Glass Hill of US$5 per ounce were very low and exceeded our expectations.
“Overall, total discovery costs, which included all greenfield drilling, were also very competitive at just US$12 per ounce.
“In addition to the increased resource, our regional exploration program has identified additional targets.
“Regional exploration is expected to form a more significant part of future exploration at Cape Ray.”