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Matador Mining Limited (ASX: MZZ) -The Birth of a Tier-1 Gold Miner

Coffee with Samso Episode 129 with Ian Murray, Executive Chairman of Matador Mining Limited (ASX: MZZ)

The Story Begins

It has been a long wait, but I had Ian Murray come by for a Coffee with Samso finally.

I first came across Ian in 2011 (I think) in Hong Kong at Mines and Money. We spoke briefly about what Gold Road was doing and how I was impressed with their tenure in the Yarmana Greenstone Belt.

Fast forward a few years later and it looks like Ian is on another similar project.

This time however, it looks like an easier project that is destined to be a gold mining district.

The Cape Ray project is one that has the potential to be a multi million ounce gold mine. All it needs now is drilling. And more drilling.

In the previous Coffee with Samso Episode 54, we had Warren Potma sharing how the company is systematically working on the project.

One of the imposing features of this project is the 120 km of strike (length), where the company is continuously finding gold mineralisation.

In today's episode, I talk with Ian Murray about how Matador Mining has been handling things since that last conversation.

The conversation we had today over our coffee was a really insightful one. Ian painted a clear backdrop of what has happened since then, what will happen and what could happen next. What I liked was that this conversation was not a promotive one, it's not a blue sky style conversation, but a factual commentary.

When I look at Matador and their projects with the market capitalisation of just under AUD64M, I can't help but think that it's not valued appropriately. They have resources of over 800K ounces as well as a project that is striking 120km. There is a great disconnect in that picture, in my opinion.

Many may say that this is a situation of having a non-Australian project. There may be some truth in it, but remember, the world is moving past the pandemic, and we are finding ourselves in a very inflationary situation. I think a good gold project in a Tier-1 jurisdiction is actually critical.

With Matador, it is no longer about if they will have a resource. In my opinion, it is a matter of these three things:

1. How big is it?

2. When will they be in production?

3. When will they be consumed by a bigger player?

I feel that the market does not realise that Matador is a miner in the making. Matador is a company that will be a miner with multi million ounces of gold.

Viewers should take a good look at the fundamentals of the company and DYOR. Ian Murray has done this before and he knows what needs to be done. It is a simple process of making sure funding exists, and to keep drilling.


00:00 Start

00:20 Introduction

01:11 Ian Murray introduction

02:03 Update on the Cape Ray Project.

04:19 Can Cape Ray be big?

06:32 Is there a consistent style of mineralisation?

07:54 The low grade vs. high grade question.

10:10 How waste can dilute an ore body.

11:08 The unloved nature of the gold narrative.

12:25 The need to be relevant in the market.

14:23 Is Matador a Simple Story?

16:15 Are there surprises in the geology of Cape Ray Shear?

19:05 Are there any Metallurgical concerns?

20:02 Is there a magical geological formula?

22:16 Will Matador do Cape Ray justice?

24:19 Cape Ray is a Company maker.

25:07 A Hermitage story?

26:44 Potential for pegmatites.

27:09 Can the Cape Ray shear host high grade deposits?

28:37 Newfoundland has little history of exploration.

29:54 TSX vs. ASX.

32:35 How is the Matador story being received?

34:27 News flow for the next 12 months.

36:41 Conclusions


About Ian Murray

Mr Murray is a Chartered Accountant, a Member of Australian Institute of Company Directors, and holds an Executive degree in Advanced Management & Leadership from the University of Oxford, Saïd Business School. With over 25 years’ mining industry experience in senior leadership positions, including the position of Executive Chairman and Managing Director of Gold Road Resources Ltd (ASX: GOR) and DRDGold Ltd (NYSE & JSE: DRD), he has also held executive positions with international ‘Big Four’ accounting firms.

Mr Murray brings a wealth of financial, corporate, project development and operational experience to the Board and most recently led Gold Road as it transitioned from explorer to large scale gold producer. Mr Murray has been the recipient of many awards during his leadership of Gold Road, including the Gavin Thomas award for leadership, the Diggers and Dealers Deal of the year award in 2017, after winning the best emerging company award in 2011 as well as the CEO of the year award from CEO Magazine.

About Matador Mining Limited (ASX: MZZ)

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.

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.



The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer.

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