Matador Mining Limited (ASX: MZZ) has commenced a development study to assess the potential for gold production at its 100% owned Cape Ray Project in Newfoundland, Canada.
With a substantial Indicated Mineral Resource and significant progress being made with environmental approvals, Matador Executive Director Keith Bowes says Cape Ray represents a development opportunity with a short lead time to potential production as early as 2023.
The Development Study will assess an open-pit operation, with the majority of ore expected to be sourced from the flagship Central Zone deposit which hosts an indicated resource of 660,000oz at 2.7g/t Au. Other nearby deposits such as Window Glass Hill, Isle Aux Mort and Big Pond will be assessed as satellite deposits. Window Glass Hill, the largest of these satellite deposits (134,000oz Au) is located only 2km from Central Zone.
Mr Bowes said the company anticipates completing the Development Study in Q1 2020 with the company looking to add to the Project’s Resource with a current 12,000m drill program.
“The aim of the Development Study is to highlight the potential of the current resource to produce 100,000oz Au per annum, it will also determine if a viable platform can be developed that will form the core of the operation and from which future growth can be based.
“A differentiator for the Project is the higher grades at shallower depths which is fundamentally different to most Australian projects and which we believe will drive lower capital and operating costs.
“With a strong possibility for further discoveries along the Cape Ray Shear, where the company’s tenements now cover 80km of the shear, the potential for expanding the resource further supports the current development opportunity.
“The company has also been working hard behind the scenes to advance the environmental assessment process, with a number of baseline studies already undertaken this year. These studies will be completed next year with the Environmental Impact Statement documentation submitted before the end of 2020 and construction permitting targeted for approval in late 2021.
“With the progress made on the environmental approvals, together with the existing resources, exploration upside and the significant increase in the gold price, the timing is right to commence this Development Study,” Mr Bowes added.
