Matador Mining begins its largest exploration season at Cape Ray Gold Project in Canada

Matador Mining Ltd (ASX:MZZ) (OTCMKTS:MZZMF) (FRA:MA3) has started 2021 exploration at its 100%-owned Cape Ray Gold Project in Newfoundland, Canada, in what is shaping as its largest program to date. The 2021 exploration, which started three months earlier than normal, will include the largest diamond drilling program ever undertaken by the company with upwards of 20,000 metres planned. This program is aimed at expanding gold mineralisation around known deposits while testing up to nine new greenfield target areas. The company plans to use an innovative ATV-mounted power-auger multi-element geochemistry drilling program for systematic and rapid definition of advanced targets for follow-up diamond drilling. In addition, a detailed heli-magnetic geophysics program will be completed to improve targeting of potentially mineralised structures beneath the shallow till cover over 45 kilometres of project strike. “Potential for resource growth” The exploration program is designed to grow the existing mineral resource of 840,000 ounces gold at 2 g/t within the project area, as defined in the Cape Ray Gold Project scoping study. Focusing on this area has the potential to deliver mineral resources that can be added into the future pre-feasibility study.  Matador executive chairman Ian Murray said: “Following our successful 2020 exploration season, we are excited to start this year’s program in what is shaping up to be the largest undertaken by the company. “Significant planning occurred during the northern winter season to allow for the early start to the drilling campaign, and I would like to thank our geological team and in-country contractors for the effort they have put in. “We see excellent potential for mineral resource growth at each of our known deposits, which will be the initial focus of our diamond drilling program.  “However, the potential for transformational new discoveries across our under explored package is the most exciting part of the program.” Detailed 40 metre line spaced ground magnetics data acquired in 2020 for the area between Big Pond and Window Glass Hill.  Near-mine target areas  The 2021 drilling will initially focus on targets identified through interpretation of 2020 exploration results - specifically, the extensions at depth and laterally around Window Glass Hill (WGH) and further definition and step-out drilling at the new Angus discovery.  Additional extensional drilling is also anticipated to take place at Isle aux Morts (IAM) during 2H21 following the identification of untested down-plunge potential in 2020.  While initial diamond drilling commences, the first phase of the ATV-mounted power-auger and backpack geochemistry drilling will ramp-up, targeting areas selected from last year’s ground magnetics and historic soil samples, all within the vicinity of WGH, Angus and Big Pond (BP).  This work will refine the targeting for the second phase of diamond drilling that will begin on completion of the WGH and Angus diamond drilling program.  Murray said: “Preliminary work on the first of nine new high priority target areas is underway.  “Importantly, each of these target areas is within only 15 kilometres of existing mineral resources and our Central Project Area.” Greenfield target areas  The detailed 30-metre line-spaced heli-magnetic survey will be completed covering a 45-kilometre section of the tenement package from BP in the southwest up to the Benton Five anomaly in the northeast. Structural interpretation of the heli-magnetic data will support planning and design of the power-auger and backpack drilling programs.  The combination of multi-element geochemical data from auger/backpack drilling with the geophysical data will drive the definition and ranking of discrete targets for follow-up diamond drilling.  A second phase of heli-magnetic data acquisition, covering the majority of the north-eastern portion of Matador’s tenement package, will be undertaken ahead of expanding ground exploration activities in this area.  An additional drill rig will be mobilised to site at the opportune time to facilitate concurrent drilling of both extensional/infill and greenfields targets. Proposed extent of Phase 1 and Phase 2 detailed (30-metre line-spaced) aeromagnetic surveys at Cape Ray, juxtaposed with Matador’s 33 prioritised exploration target areas and existing mineral resource locations.  First winter drill season The greenfield exploration program has also been designed to generate additional longer-term drill targets. This second stage of the power-auger and backpack geochemistry drilling will extend further northeast, testing target areas beyond IAM.  Drilling targets defined within these areas will form the basis for the diamond drill program that is being considered for either Matador’s first winter drill program at the start of 2022 or for the start of the 2022 summer drill season. The overall strategy behind the greenfield program is to systematically explore target areas identified from historic data to build a solid pipeline of refined and ranked drill ready targets so that the diamond drilling can be planned well in advance, improving efficiency and reducing wasted drill metres.  Supporting activities  With 2021 expected to be the largest drilling program ever undertaken by Matador at Cape Ray, the company has also strengthened its capabilities on site and in the nearby town of Port aux Basque to effectively manage and streamline the planned programs, including:  Expansion and upgrading of core processing facilities in Port aux Basques;  Installation of a dedicated sample preparation facility at the Port aux Basque core processing facility, guaranteeing turnaround times for assays from the drilling and auger program that will fast-track the company’s ability to refine individual drill targets;  Expansion of the field camp to accommodate the entire field crew (28 rooms), eliminating commute time and reducing the risks associated with travelling to site on a daily basis;  Matador’s two Perth-based geologists, exploration manager Warren Potma and consulting geologist Charles Gilman have both arrived in Canada and will be onsite to provide direct supervision for the program; and  Matador has also employed a full-time principal geologist who is a resident in Newfoundland and will be key to the local management of exploration programs.