Matador Mining Ltd - Scoping Study Results Provide Solid Platform for Future Growth at Cape Ray

What happened?

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?

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).
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.
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).
Environmental studies are well progressed with remaining baseline studies to be completed this year.
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.

CEO's summary

Keith Bowes CEO of Matador Mining Ltd has provided a statement.

Keith Bowes

CEO, Matador Mining Ltd

"The results of the Scoping Study were an excellent achievement for the Company and exceeded our expectations in many regards. 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). ... 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. ... Whilst the Scoping Study has provided a strong underlying platform, we believe the exploration potential at Cape Ray remains the long-term driver for the Company. With 80km of strike, making the Company the largest continuous land holder in this under explored gold region, the Company is close to finalising an exploration strategy, that will outline the pathway towards increasing the mine life.”