Matador Mining achieves strong metallurgical recoveries of 96% at Cape Ray Gold Project in Canada

Matador Mining Ltd’s (ASX:MZZ) (OTCMKTS:MZZMF) (FRA:MA3) second round of laboratory-based metallurgical test-work for the Cape Ray Gold Project in Newfoundland, Canada, has achieved average gold recoveries of 96% from a combined gravity and cyanide leach process. Central Zone and Window Glass Hill, which account for approximately 90% of the total current Cape Ray 837,000-ounce JORC resource, were the focus for this metallurgical test-work program. Gravity test results improved compared to previous results with recoveries up to 70% (averaging 53%) compared to 26% (average) reported from previous programs and combined gravity/cyanide leach gold extractions ranged from 90-98% with average gold recovery of 96% and silver recovery of 68% over a 48-hour leach residence time. The test-work program used samples selected primarily from diamond drill core from the 2019 drill program completed by Matador and supplemented by five historical diamond drill holes that were stored at the Department of Natural Resources core storage facility in Pasadena, Newfoundland. “Opportunity to reduce operating costs” Notably, cyanide consumption was reduced compared to the scoping study, which highlights potential for lower future processing cost assumptions. Matador executive chairman Ian Murray said: “These metallurgical results confirm that the material mineral resources so far defined at the Cape Ray Gold Project are amenable to conventional processing technologies and have the potential to deliver high gold recoveries under relatively modest conditions. “In addition to the positive gold recovery results, optimisation work around the leaching process also indicates a further opportunity to reduce plant operating costs compared to those assumed previously. “We plan to continue to build on this program of work so that a detailed geometallurgical/domain model can be developed and used in our ongoing study work, providing further confidence in the reported results.” The head grade data graphically (composite samples in red, variability samples in blue) and includes the upper and lower plant feed gold grades from the scoping study for comparison (2.96 g/t and 0.7 g/t gold respectively). Dedicated gravity circuit Gold gravity test results show an improvement compared to the scoping study results with averages of 47%, 53% and 57% gravity recoverable gold for the respective 20 samples tested, representing a large increase above the results reported in the scoping study. Intensive cyanidations were performed on the gravity concentrates produced from the two composite samples. Gold extractions from the concentrate were excellent at 98-99%, while silver recoveries were lower at 60-68%. The company believes the inclusion of a dedicated gravity circuit in the proposed flowsheet is warranted by these results. Metallurgical sample locations. Future work programs Results indicate quite variable hardness for the ore, both between the two main material types (the granite on average being the harder of the two) and within the same material types. The selection of the three-stage crush with ball mill circuit as proposed in the scoping study, which is more forgiving to varying feed hardness, is validated by these results. Future programs will incorporate material from Isle aux Morts, the new Angus discovery and any other new discoveries identified in ongoing exploration programs. These samples will be tested under the same optimal conditions for gravity recovery and cyanide leaching to confirm the preferred conditions for all material types. This data, supported by additional samples from Central Zone and Window Glass Hill, will be used to generate a geometallurgical/domaining model.