Matador Mining (ASX: MZZ) has generated “excellent” recoveries after a second round of metallurgical test work on ore samples from its Cape Ray gold project in Canada’s Newfoundland.
During the second round of laboratory-based test work, average gold recoveries of 96% were achieved using a combined gravity and cyanide leach process.
Ore samples used in the test work were from the Central Zone and Window Glass Hill deposits, which account for about 90% of the Cape Ray project’s total resource.
Compared to the scoping study, cyanide consumption during the testing process was reduced, which the company anticipates may result in lower processing cost assumptions.
Matador executive chairman Ian Murray said the results confirm that mineral resources at Cape Ray are amenable to conventional processing methods – and are able to deliver high gold recoveries under “relatively modest conditions”.
“In addition to the positive gold recovery results, optimisation work around the leaching process also indicates a further opportunity to reduce plan operating costs compared to those assumed previously.”
Mr Murray said the company would build on this work to develop a detailed geometallurgical/domain model to underpin feasibility studies.
Advancing Cape Ray gold project
Future metallurgical test work will include ore samples from Isle aux Morts, the new Angus target and any future discoveries from ongoing exploration.
Matador announced the start of its 2021 exploration season at Cape Ray at the end of April and has now kicked-off its 20,000m diamond drilling program at the project.
This is the company’s largest drilling campaign at the project to-date with exploration to continue through the Canadian winter and into 2022.
Cape Ray hosts 120km of continuous strike in what’s been described as a multi-million ounce gold province.
The program aims to grow existing resources from the 840,000oz of contained gold.
Initial results from power-auger drilling have confirmed sulphide-bearing quartz veins and strong alteration, similar to gold mineralisation in diamond drill core from Window Glass Hill.
Mr Murray said the results marked a “very strong start” to the 2021 field season.