Project Locations: Canada
Stock Code: ASX:MZZ
Commodity Exposure: Gold
Stage: Exploration, Development
Matador Mining is an ASX listed gold exploration and development company, focused on the expansion and development of our Cape Ray Gold Project in Newfoundland, Canada. The Company has the largest holdings along the Cape Ray shear (120km of strike), widely regarded as one of the most prospective, yet under explored regions in Canada.
The company has recently provided results from its scoping study which include following highlights:
– 100% owned Cape Ray Gold Project in Newfoundland, Canada confirms the viability of a standalone gold operation assuming an initial 7-year mine life.
– After-tax IRR of 51% and NPV8 of A$194M based on a US$1,550/oz gold price.
– Rapid after-tax payback of 1.75 years decreasing to 1.50 years at the current spot gold price.
– 7-year life of mine with total gold mined 504,000 oz, averaging 88,000 oz production per year during the first four years.
– LOM average Total Cash Costs of US$709/oz and All-In Sustaining Costs of US$776/oz.
– Initial total capital costs of US$102M (including US$6M mine development).
– Processing facility throughput of 1.2Mtpa with average head grade of 2.0g/t Au (LOM), and 2.56 g/t Au during the first 4 years of production.
– Environmental studies are well progressed with remaining baseline studies to be completed this year.
The Company is finalising its exploration strategy for 2020 with plans to recommence work on the ground during July
Ian Murray, Executive Chairman
With over 25 years’ mining industry experience in senior leadership positions, including the position of Executive Chairman and Managing Director of Gold Road Resources Ltd (ASX: GOR) and DRDGold Ltd (NYSE & JSE: DRD), he has also held executive positions with international ‘Big Four’ accounting firms.
Mr Murray brings a wealth of financial, corporate, project development and operational experience to the Board and most recently led Gold Road as it transitioned from explorer to large scale gold producer. Mr Murray has been the recipient of many awards during his leadership of Gold Road, including the Gavin Thomas award for leadership, the Diggers and Dealers Deal of the year award in 2017, after winning the best emerging company award in 2011 as well as the CEO of the year award from CEO Magazine.
Mr Murray is a Chartered Accountant, a Member of Australian Institute of Company Directors, and holds an Executive degree in Advanced Management & Leadership from the University of Oxford, Saïd Business School.
We announced our scoping study earlier in May 2020. The results of the Scoping Study were an excellent achievement. The most important outputs we believe for any resource project is a strong IRR (post tax – 51%;), rapid payback (1.75yrs) as well as low operating costs (US$776/oz). W
The key driver for these robust returns is the exceptional high-grade open pit ore that is mined and processed during the first two years (2.72g/t Au) and first four years (2.5g/t au) of production, meaning the Cape Ray Project ranks as one of the highest grade open pit operations.
The Company also recently increased its holdings along the Cape Ray shear to 120km of strike to become the largest holder of ground in the under explored region. The Company will recommence exploration work in July 2020.
Correct as of 9th June 2020