Matador Mining Ltd (ASX:MZZ) (OTCMKTS:MZZMF) (FRA:MA3) has its sights set on accelerating exploration and pre-development activities at the Cape Ray Gold Project in Newfoundland, Canada, with a range of key environmental studies nearing completion.
These baseline studies will form the groundwork of an Environmental Impact Statement (EIS), anticipated for completion and submission to Federal and Provincial governments in 2022.
Meanwhile, Matador has also engaged with First Nations groups in the area and advanced discussions with other key stakeholders as the development of an environmental, social, and governance framework continues.
Well-funded to pursue strategy
The West Perth-based gold explorer is in a solid financial position following having raised A$16 million at the end of June at a 28% premium.
Strong demand from international and Australian institutional investors was received for the placement and the company now plans on focusing its exploration activities on:
- 45,000 metres of diamond drilling;
- Increased power auger drilling with five rigs;
- Expanded heli-mag program to 80 kilometres of strike;
- Inaugural winter exploration program; and
- Pre-feasibility study and permitting work.
Matador's project, which lies in a proven multi-million-ounce gold system called the Cape Ray Shear Zone, has a strike length of around 120 kilometres, including 105 kilometres that have never been tested before.
In the past, Matador executive chairman Ian Murray has spoken at length with Proactive about the province's exploration renaissance, as Canadian companies including New Found Gold Corp (CVE:NFG) and Marathon Gold Corp (TSE:MOZ) – boasting market caps of $1 billion and $600 million respectively – hunt for the next major discovery close to MZZ’s tenements.
In an interview with Proactive’s Andrew Scott, Shaw and Partner’s Davide Bosio reiterated this sentiment: “It’s a very, very interesting part of the world that they operate in.
“It’s a very exciting province and there are some big deposits being found.
“Their exploration has been very successful, and they’ve got a fantastic team of people who have run successful gold companies in the past.”
Doubling activities and doubling the pace
MZZ executive chairman Ian Murray said the placement had put the gold stock in a very fortunate position.
He said: “More importantly, about 75% of the bookbuild was new North American institutions that have come onto our register.
“We are now more than doubling our diamond drilling, doubling the auger drilling and doubling the heli-mag program, which should mean that we capture information for shareholders and get results and discoveries a lot quicker than we originally planned.”
New opportunities
The company recently boosted its landholding by 37% to cover 750 square kilometres of Newfoundland after it evaluated prospective tenements outside of its Cape Ray Gold Project.
Specifically, two new blocks to the west of the Cape Ray asset caught Matador’s eye and were added to the company’s tenement package.
The ASX-lister also picked up the Hermitage Project, a regional gold exploration asset that runs along 27 kilometres of continuous strike.
At the time Murray said: “Newfoundland has become one of the most exciting jurisdictions for gold exploration in North America.
“Whilst we believe we already have one of the most attractive and under-explored packages in Newfoundland, our exploration team is always assessing new opportunities."