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Matador Mining Limited (ASX: MZZ) – a story about a mega gold exploration project

31 October 2022 10:30

Matador Mining has changed their strategy to be more exploration focused. I can see this as a very calculated approach. A focus to look for the “Holy Grail” is a smart move.

This is a technical episode where we discuss what makes Cape Ray tick and how management will tackle the concept of discovery. Warren and Crispin brings a lively discussion on the How, the Why, the Where and the With What.

This is a must have discussion as the size of the project is hard to conceptualize for the average investor. The magnitude of 120km of strike length may be big but it’s the location of the secondary and tertiary structural points that will make discoveries. Many geoscientists in this area will agree that there are many big deposits, and big economic deposits that have come from these secondary and tertiary points.

For those that want to understand the technical aspects of the Matador story, this is a great time to make a coffee or tea, sit back and enjoy this Coffee with Samso.

Chapters:

00:00 Start

00:20 Introduction

01:45 Warren Potma and Matador Mining.

04:27 Crispin Pike and the progress of exploration activities.

07:40 Geophysics as a dominant tool used by exploration.

08:49 Discussion about big projects.

12:33 Shallow drilling at Cape Ray.

13:16 Is Cape Ray geologically unique?

14:57 What is the market sentiment for Matador and the Gold sector?

16:45 Thoughts on the project as the Exploration Manager.

19:24 Challenges of the project.

22:24 Jurisdiction matters.

25:19 The Hermitage Project.

28:44 Could Hermitage be a first tier project?

29:30 Are regional structure controls dominating the Mineralisation?

31:13 Finding the next bigger deposits.

32:10 How big can the Matador projects end up?

33:41 News flow.

35:51 Takeaway from Coffee with Samso.

38:17 Conclusion

 

PODCAST

Matador Mining Limited (ASX: MZZ) - A Story About A Mega Gold Exploration Project.

About Warren Potma

Chief Geologist

Mr Potma is a highly experienced exploration manager, with a successful career spanning over 25 years. He was most recently Principal Geologist for CSA Global, where he provided specialist consulting services to exploration and mining companies.

Prior to his time at CSA Global, Warren was Exploration Manager for Hot Chili, an ASX listed company with a portfolio of projects in Chile. Warren’s geology team also delivered a maiden Ore Reserve and provided all the geological and geometallurgical inputs required for the Productora Pre-Feasibility Study. Prior to this, Warren held the position of Exploration Manager for Silver Swan Group/Caravel Minerals following his departure from a very successful eight years with the CSIRO where he led the Mineral Systems and Targeting applied research stream which focused on developing and applying exploration technologies and methodologies across the Australian exploration and mining sector.

Warren holds a Master’s degree in structural geology from Monash University, and is a member of both the AIG and AUSIMM.

About Crispin Pike

VP, Discovery

Crispin Pike has come on as Exploration Manager having worked for the Geological Survey of Newfoundland and Labrador for six years, and prior to that with 9 years with INCO/Vale on projects across North and South America.

About Matador Mining Limited (ASX: MZZ)

Matador Mining Limited is an exploration company that is listed on the Australian Stock Exchange (ASX). The company has its main project in the south-western area of Newfoundland, Canada. The Project is about 25 km northeast of the coastal town of Port aux Basques and is located on the Cape Ray shear, one of the most prospective, yet under-explored gold regions in North America. The Company is the largest holder of ground along the Cape Ray shear, with approximately 120 km of continuous strike along the shear. The Company’s tenement boundary is located approximately 50 km along strike from Marathon Gold’s (MOZ.TSX) 4.2Moz Valentine Lake Gold Project.

The Cape Ray Gold Project

The Cape Ray Gold Project (Cape Ray or the Project) covers approximately 120km of strike along the highly prospective, yet under explored Cape Ray Shear located in Newfoundland, Canada. The Project hosts a current resource of 837,000oz Au at 2g/t Au, across four deposits, all of which are within 15km of strike.

MZZ Cape Ray

A 2020 Scoping Study (ASX announcement 6 May 2020) highlighted that Cape Ray has the makings of an excellent gold project, with low estimated All In Sustaining Operating costs (US$776/oz Au), strong IRR (51% post Tax) and rapid payback (1.75 year).

These strong outputs were driven by the Project’s high grade, yet shallow gold mineralisation, (average head grade of 2.6g/t au during the first four years of production – 88,000oz Au per annum) that ranks the Project as one of the highest grade, undeveloped open pit projects globally.

However, prior to commencing a Pre-Feasibility Study, the Company identified the requirement to grow the Resource further to ensure the initial 7 years mine life assumed in the Scoping Study is increased. To achieve this, the Company believes a blend of expansion drilling around known deposits as well greenfield exploration to test the vast, yet under explored Project area as the optimal strategy. The Company therefore outlined the most expansive exploration program for the 2021/22 season, including:

 

  • 45,000 metres of diamond drilling;
  • Five power auger drill rigs;
  • 80 kilometre Heli-Mag program; and
  • Inaugural winter exploration program.

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