Matador Mining Limited (ASX: MZZ) has reported encouraging results from its ongoing exploration programme at its Cape Ray Gold Project in Newfoundland, Canada.
The latest results from the second and third stages of the exploration programme where drilling targeted shallow lateral extensions around known deposits, whilst also testing “gaps” between known deposits, specifically at the Central Zone Project (810,000oz Au at 2.6g/t Au).
Window Glass Hill (WGH) hosts a current resource of 134,000oz at 1.2g/t Au and is a key target for the second stage of the exploration programme.
Whilst lower grade than Central Zone, the company believes WGH has the potential to become a large tonnage, low strip ratio deposit, and form a major source for future production at the project.
Results from the current drill programme at WGH include: 22.8m at 1.1g/t Au (incl. 9.7m at 2.2 g/t) from 58m; 9.2m 1.1g/t Au from 70m; CRD084 – 4.2m at 2.2g/t Au from 61m; 2.8m at 3.6g/t Au from 34m; 2.8m at 1.1g/t Au from 6m.
Technical Director Keith Bowes said the company is extremely encouraged by these results as all intercepts are at a depth of less than 100m, therefore aligning with the Company’s strategy of targeting mineralisation that can be easily accessed via an open pit operation.
Mr Bowes said particularly pleasing is that the initial drill holes at WGH stepped out 240m from the current resource boundary and intercepted mineralisation.
The company has since drilled an additional five holes within this interpreted mineralised area, with another six holes planned. This area has the potential to add substantial resources to the WGH deposit.
In addition to WGH, the company tested a “gap” between the 04 and H Brook deposit, located at the northern extension of Central Zone Project (810,000oz at 2.7g/t Au). This returned gold intercepts of gold of: 5.4m at 4.3g/t Au (incl. 2.5m at 8.8 g/t) from 74m; 0.3m at 6.2g/t Au from 61m;1.05m at 1.0g/t Au from 94m.
This intercept encountered multiple mineralised lodes with a high-grade section.
“We have long believed WGH has the potential to be a large tonnage, low strip ratio deposit and recent results are shaping up to confirm this. Importantly, from our interpretation, the latest intercepts are shallow up-dip extensions of the existing gold resources (134,000oz Au), all less than 100m from surface, therefore aligning with the company’s strategy of targeting shallow mineralisation that can be mined easily via an open pit operation,” Mr Bowes said.
These results indicate that WGH could form a significant part of the long-term production plan, which will be announced as part of our development study targeted for release in Q1-2020.
“In addition to the WGH results, we are very encouraged by hole CRD071, located 80 metres to the north of Central Zone. Given the grade, nature (multiple stacked lodes) and its location, there is potential that this could be a further extension to the north of Central Zone in a similar way to which CRD052 (15.9m at 3.1g/t (incl. 4m at 10.7g/t Au) from 148m) and PW Zone have extended the Central Zone to the south (ASX Announcement 1st October 2019).”
