Matador Mining Limited (ASX: MZZ, MZZO) has announced an encouraging update regarding the ongoing exploration program at its Cape Ray Gold Project in Newfoundland, Canada.
The company reported that the drilling at Window Glass Hill continues to deliver strong exploration results.
Highlights include 29m at 1.9g/t Au (incl. 3m at 9.7g/t from 44m and 9m at 3.0g/t from 64m); 21m at 1.3g/t Au (incl. 2m at 11.4g/t) from 38m; 13m at 1.0g/t Au (incl. 3.2m at 3.4g/t) from 89m; 3m at 3.4g/t Au from 47m; and 5m at 1.0g/t Au from 47m.
The company said that the recent drilling has encountered higher grade gold mineralisation than previously reported which may indicate the potential for a high-grade section at the Window Glass Hill deposit.
MZZ reported that the drilling at PW deposit, the southern extension of Central Zone, has successfully intercepted mineralisation up-dip to the previously reported hole CRD052.
The company also reported the confirmation of a new footwall lode at Central Zone (Zone 51) through assaying of previously unsampled core. Assay results include 1m at 5.4g/t Au from 136m; 0.9m at 3.4g/t Au from 149m; and 3.4m at 1.1g/t from 130m.
Cape Ray gold project
The Cape Ray Gold Project is located in Newfoundland, a large island east of the Canadian mainland. Located in the south of Newfoundland, the Cape Ray gold project is about 25 kilometres northeast of the coastal town of Port aux Basques.
The project has a JORC resource of 1.02Moz Au at an average grade of 2.2g/t contained within 4 areas which covers a strike of around 14km. The four areas are Central Zone, Isle Aux Mort, Big Pond, and Window Glass Hill.
Window Glass Hill deposit
Window Glass Hill (WGH) hosts an existing resource of 134,000oz Au grading 1.2g/t Au and is located approximately 1km from form the PW deposit at Central Zone. The Company had announced that it plans to develop Window Glass Hill as a large tonnage, low strip ratio deposit.
Further drilling at WGH
The company reported had continued to test an area between the previous step out drill hole located approximately 240m from the current resource boundary at WGH.
MZZ announced that all drilling between the step out hole and the resource has intersected gold mineralisation whilst also continuing in an up-dip trajectory to the north-east of the existing resource.
High-grade gold intercepts at WGH
The company reported further high-grade gold intercepts at WGH.
Most recent results include 29m at 1.9g/t Au (incl. 3m at 9.7g/t and 9m at 3.0g/t) from 64m (hole CRD091); 21m at 1.3g/t Au (incl. 2m at 11.4g/t) from 38m (hole CRD087); 13m at 1.0g/t Au (incl. 3.2m at 3.4g/t) from 89m (hole CRD086); 3m at 3.4g/t Au from 47m (hole CRD090); and CRD089 – 5m at 1.0g/t Au from 47m (hole CRD089).
Potential for a high-grade section
MZZ reported that the extensional drilling indicates a thick core to the system which also bifurcates into multiple lodes. The company noted that This style of mineralisation has the strong potential to support a large tonnage, open cut operation.
MZZ also reported that the recent drilling has encountered higher grade gold than previously reported, which may indicate the potential for a high-grade section at the Window Glass Hill deposit.
Drilling at PW deposit
Matador reported that the second phase of the drilling program also targeted the shallower resource extensions around Central Zone.
MZZ said that a key target area for this drilling was the PW deposit, which is located at the southern extension of Central Zone and hosts a small, low grade resource of 0.7Mt at 1.2g/t – 28,000oz Au.
The company had stepped out to the south of the existing resource and had previously intercepted 16m @ 3.1g/t Au from 148.2m in hole CRD052.
MZZ said that it has since tested this structure updip to determine if it continues to surface. The company reported that the hole CRD088 intercepted 5.8m at 2.1g/t Au from 57m.
Zone 51 at Central Zone
The company noted that the first phase of the drilling program targeted deeper interpreted structural trend-extents around Central Zone.
The hole CRD045 had targeted the northern trend extents of Zone 51 and intersected mineralisation (4.0m @1.4g/t Au) within quartz veining in an interpreted footwall position to the main lode.
MZZ reported that following a review of all previous drilling in the area, numerous coherent high-grade intercepts were identified which had not been modelled in the current mineral resource.
Assays confirm new footwall lode
The Company reported that it has now identified and sampled historical core within this footwall region which was not previously sampled.
Significant results include 1m at 5.4g/t Au from 136m (hole PB79-133); 0.9m at 3.4g/t Au from 149m (hole PB79-132); and 3.4m at 1.1g/t from 130m (hole PB79-108)
The company said that these results, which are expected to add to the existing resource at Zone 51, also demonstrate that this is a multi-lode system similar to the 04 and 41 deposits, both of which sit along strike just to the north of Zone 51.
Matador Mining’s Executive Director Keith Bowes commented: “We are pleased with the continued drilling success at Window Glass Hill, as results give further encouragement that this is shaping up as a shallow, large tonnage deposit.
With drilling having identified shallow resource extensions, mining at Window Glass Hill is expected to be simple and cost effective, providing support for Project development.
In addition, up-dip drilling at the PW deposit in Central Zone has confirmed a higher grade section of this deposit and extended the previous 2.5km resource boundary at Central Zone.
Given that both PW and Window Glass Hill are granites deposits, there is potential for these to join. There has been limited to no drilling between these deposits which are approximately 1km apart and this is a priority area for follow up work.”