Cape Ray is located within the regional-scale gold-bearing Cape Ray Shear Zone, a geological structure that extends approximately 400 kilometers through Newfoundland. It is regarded as one of the most prospective but under-explored regions in Canada. Matador consolidated the southern portion (65km of potential strike) of this geological structure as part of an acquisition completed in 2018.
The Company has defined a resource across four areas within the existing exploration area which covers a strike of approximately 14km. These areas consist of the Central Zone (PW, 51, 41, 04 and H deposits), Window Glass Hill, Big Pond and Isle Aux Mort.
Image 1: Map of resource location
The Central Zone consists of five deposits across 2.5km strike length and has been the focus of most of the historical exploration work. Prior to Matador’s exploration activities, a total of 418 holes for 69,000m had been drilled within the Central Zone deposits.
The Isle Aux Mort, Window Glass Hill and Big Pond deposits have received comparatively less drilling than the Central Zone with 16,200m drilled at these deposits prior to Matador’s exploration activities.
During 2018, Matador undertook additional diamond drilling to test for extensions to the existing resources.
Drilling at the Central Zone in particular, allowed for an expansion of the mineralised envelope and enabled a revised geological interpretation that has significantly and positively impacted the resource volumes and grade. As a result of the updated model, that now incorporates Matador’s drilling, the global resource at Cape Ray has increased to 14.25Mt at 2.2g/t Au for 1.02Moz Au. In addition, the updated model indicates potential for resource extensions and will be tested by further drilling.
The Cape Ray resource estimate, as at January 2019, as shown in Table 2 is classified in accordance with CIM and JORC 2012.
Table 1: CAPE RAY GOLD PROJECT, JORC 2012 Classified Resource Summary – Gold resource only
|Isle Aux Mort||-||-||-||0.78||2.4||60||0.78||2.4||60|
Note: reported at 0.5 g/t Au cutoff grade
For more information on the resource download the ASX announcement from January 2019.