Coffee with Samso: Matador Mining - a story about a mega gold exploration project

Coffee with Samso Episode 156 is with William Potma, Chief Geologist and Crispin Pike, VP, Discovery of Matador Mining Ltd (ASX:MZZ, OTCQX:MZZMF).

Matador Mining has changed its strategy to be more exploration-focused. I can see this as a very calculated approach. A focus to look for the "Holy Grail" is a smart move.

This is a technical episode where we discuss what makes Cape Ray tick and how management will tackle the concept of discovery. Warren and Crispin bring a lively discussion on the How, the Why, the Where and the With What.

This is a must-have discussion as the size of the project is hard to conceptualize for the average investor. The magnitude of 120km of strike length may be big but it's the location of the secondary and tertiary structural points that will make discoveries. Many geoscientists in this area will agree that there are many big deposits and big economic deposits that have come from these secondary and tertiary points.

For those that want to understand the technical aspects of the Matador story, this is a great time to make a coffee or tea, sit back and enjoy this Coffee with Samso.

Chapters:

00:00 Start

00:20 Introduction

01:45 Warren Potma and Matador Mining.

04:27 Crispin Pike and the progress of exploration activities.

07:40 Geophysics as a dominant tool used by exploration.

08:49 Discussion about big projects.

12:33 Shallow drilling at Cape Ray.

13:16 Is Cape Ray geologically unique?

14:57 What is the market sentiment for Matador and the Gold sector?

16:45 Thoughts on the project as the Exploration Manager.

19:24 Challenges of the project.

22:24 Jurisdiction matters.

25:19 The Hermitage Project.

28:44 Could Hermitage be a first tier project?

29:30 Are regional structure controls dominating the Mineralisation?

31:13 Finding the next bigger deposits.

32:10 How big can the Matador projects end up?

33:41 News flow.

35:51 Takeaway from Coffee with Samso.

38:17 Conclusion

PODCAST

About Warren Potma

Chief Geologist

Mr Potma is a highly experienced exploration manager, with a successful career spanning over 25 years. He was most recently Principal Geologist for CSA Global, where he provided specialist consulting services to exploration and mining companies.

Prior to his time at CSA Global, Warren was Exploration Manager for Hot Chili, an ASX listed company with a portfolio of projects in Chile. Warren’s geology team also delivered a maiden Ore Reserve and provided all the geological and geometallurgical inputs required for the Productora Pre-Feasibility Study. Prior to this, Warren held the position of Exploration Manager for Silver Swan Group/Caravel Minerals following his departure from a very successful eight years with the CSIRO where he led the Mineral Systems and Targeting applied research stream which focused on developing and applying exploration technologies and methodologies across the Australian exploration and mining sector.

Warren holds a Master’s degree in structural geology from Monash University, and is a member of both the AIG and AUSIMM.

About Crispin Pike

VP, Discovery

Crispin Pike has come on as Exploration Manager having worked for the Geological Survey of Newfoundland and Labrador for six years, and prior to that with 9 years with INCO/Vale on projects across North and South America.

About Matador Mining Ltd (ASX:MZZ, OTCQX:MZZMF)

Matador Mining Limited is an exploration company that is listed on the Australian Stock Exchange (ASX). The company has its main project in the south-western area of Newfoundland, Canada. The Project is about 25 km northeast of the coastal town of Port aux Basques and is located on the Cape Ray shear, one of the most prospective, yet under-explored gold regions in North America. The Company is the largest holder of ground along the Cape Ray shear, with approximately 120 km of continuous strike along the shear. The Company’s tenement boundary is located approximately 50 km along strike from Marathon Gold’s (MOZ.TSX) 4.2Moz Valentine Lake Gold Project.

The Cape Ray Gold Project

The Cape Ray Gold Project (Cape Ray or the Project) covers approximately 120km of strike along the highly prospective, yet under explored Cape Ray Shear located in Newfoundland, Canada. The Project hosts a current resource of 837,000oz Au at 2g/t Au, across four deposits, all of which are within 15km of strike.

Cape Ray Gold Project

A 2020 Scoping Study (ASX announcement 6 May 2020) highlighted that Cape Ray has the makings of an excellent gold project, with low estimated All In Sustaining Operating costs (US$776/oz Au), strong IRR (51% post Tax) and rapid payback (1.75 year).

These strong outputs were driven by the Project’s high grade, yet shallow gold mineralisation, (average head grade of 2.6g/t au during the first four years of production – 88,000oz Au per annum) that ranks the Project as one of the highest grade, undeveloped open pit projects globally.

However, prior to commencing a Pre-Feasibility Study, the Company identified the requirement to grow the Resource further to ensure the initial 7 years mine life assumed in the Scoping Study is increased. To achieve this, the Company believes a blend of expansion drilling around known deposits as well greenfield exploration to test the vast, yet under explored Project area as the optimal strategy. The Company therefore outlined the most expansive exploration program for the 2021/22 season, including:

• 45,000 metres of diamond drilling;
• Five power auger drill rigs;
• 80 kilometre Heli-Mag program; and
• Inaugural winter exploration program.

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For further information about Coffee with Samso and Rooster Talks visit: www.samso.com.au

About Samso

Samso is a renowned resource among the investment community for keen market analysis and insights into the companies and business trends that matter.

Investors seek out Samso for knowledgeable evaluations of current industry developments across a variety of business sectors and considered forecasts of future performances.

With a compelling format of relaxed online video interviews, Samso provides clear answers to questions they may not have the opportunity to ask and lays out the big picture to help them complete their investment research.

And in doing so, Samso also enables companies featured in interviews to build valuable engagement with their investment communities and customers.

Headed by industry veteran Noel Ong and based in Perth, Western Australia, Samso’s Coffee with Samso and Rooster Talk interviews both feature friendly conversations with business figures that give insights into Australian Stock Exchange (ASX) companies, related concepts and industry trends.

Noel Ong is a geologist with nearly 30 years of industry experience and a strong background in capital markets, corporate finance and the mineral resource sector. He was founder and managing director of ASX-listed company Siburan Resources Limited from 2009-2017 and has also been involved in several other ASX listings, providing advice, procuring projects and helping to raise capital.

He brings all this experience and expertise to the Samso interviews, where his engaging conversation style creates a relaxed dialogue, revealing insights that can pique investor interest.

Noel Ong travels across Australia to record the interviews, only requiring a coffee shop environment where they can be set up. The interviews are posted on Samso’s website and podcasts, YouTube and other relevant online environments where they can be shared among investment communities.

Samso also has a track record of developing successful business concepts in the Australasia region and provides bespoke research and counsel to businesses seeking to raise capital and procuring projects for ASX listings.

Disclaimer

The information contained in this article is the writer’s personal opinion and is provided for information only and is not intended to or nor will it create/induce the creation of any binding legal relations. Read full disclaimer.