Scoping Study Results Provide Solid Platform for Future Growth at Cape Ray

What's happened?

Matador Mining Ltd (ASX: MZZ, “Matador”) has announced the results of a Scoping Study for the Company’s Cape Ray Gold Project in Newfoundland, Canada.

What are the key highlights?

1. After-tax IRR of 51% and NPV8 of A$194M based on a US$1,550/oz gold price. This increases to an IRR of 65% and NPV8 of A$259M at the current spot price (~US$1,700/oz gold).
2. Rapid after-tax payback of 1.75 years decreasing to 1.50 years at the current spot gold price. 3.7-year life of mine with total gold mined 504,000 oz, averaging 88,000 oz production per year during the first four years.
3. LOM average Total Cash Costs of US$709/oz and All-In Sustaining Costs of US$776/oz.
4. Initial total capital costs of US$102M (including US$6M mine development).
5. Environmental studies are well progressed with remaining baseline studies to be completed this year.
6. The long-term exploration strategy is being finalised with a focus on extending the mine life whilst replacing low-grade stockpile material with higher grade ore earlier in the Project’s life.