AAM - Aumega Metals

[System]

Matador Mining's assets consist of rights over 4 exploration licences and 3 prospecting licences.

The Oriental Project is located proximal to infrastructure and has a number of drilling intercepts.

The Copper Hills Project has both small scale historical mining and extensive exploration undertaken for copper which has outlined a number of targets warranting further exploration.

The gold mineralisation to date at the Laverton West Project ranges both from shallow oxide to primary gold mineralisation. The Laverton West Project is located within 15km of Laverton and is surrounded by historical gold mines.

The Pyramid Hill Project has previously undergone predominantly tungsten and uranium exploration activities, and a review of the lithium potential of the pegmatites within the tenure is also proposed. The Snake Hill Project has small scale historical gold operations located within the licence, with further work required to determine the scale and tenor of mineralisation.

It is anticipated that MZZ will list on the ASX during March 2017.

http://www.matadormining.com.au

 

[greggles]

A couple of days ago Matador Mining announced that it has finalised the acquisition of an initial 80% interest in the Cape Ray Gold Project in Newfoundland, Canada from Benton Resources Inc. The $5 million required to fund the acquisition was raised via the placement of 20,000,000 ordinary shares a 25c a share.

The tenure covers over 45km of the Cape Ray Shear Zone, a regional gold-bearing structure in an under-explored gold belt with more than 200km of strike and hosting existing deposits of greater than 3Moz. The project has an existing resource of 6.9Mt @ 2.4 g/t Au for 525,000oz Au.

Matador Mining is very thinly traded but the share price has been ticking up over the last few days and has reached a high of 35c today.

Please note that I am not endorsing this stock in any way, just providing an update for those interested.

 

[barney]

Relatively small share registry with a market cap around $20 million so SP could be open to some volatility. Probably easier to accumulate on the dips rather than trade .. Given the quality of the project it looks a low risk longer term punt.

Historic Gold grades on the Cape Ray project are very good! Nice wide high grade veins starting close to surface …. Very under explored and already 1/2 million oz of Gold so they should be able to build up a solid deposit over the next couple of years

Significant historical drilling results at Cape Ray include:

• 17.0m at 16.0g/t Au (incl. 4.0m at 33.5g/t Au & 1.0m at 71.6g/t Au) from 21m

• 17.4m at 12.4g/t Au (incl. 2.8m at 37.4g/t Au) from 201m

• 10.0m at 17.0g/t Au from 53m

• 0.5m at 300g/t Au from 161m

• 1.2m at 113.8g/t Au from 72m

• 6.8m at 18.2g/t Au from 13.6m -

 

[The Triangle]

Grades coming back over the past few months have not exactly been inspiring. Cash burn continues and they'll need a capital raising probably mid-next quarter in my view. Winter diamond drilling in remote Canada is not cheap. Not sure how many more ounces they need to add before they update studies - but I think it's going to be a lot. The new CEO has a background in management consulting, BHP, oil and gas and investor relations? It's a reasonable list of qualifications, but I'm not seeing much experience in project development, exploration, or mining. Very much a neutral appointment in my book.

800,000+oz @ 2g/t is an interesting resource, but my gut feeling is that it will grow at a reduced grade. As their scoping study is approaching 2 years old almost all of their cost estimates will be obsolete. The strip ratio is nearing 10:1 so their estimates on mining cost per tonne are far more critical than other mines (and they only had $2/USD tonne) The MC is sitting around the $70m mark. Not expensive but not cheap.

 

[The Triangle]

Market cap has halved and share price is down two thirds in about 6 months. MZZ are on my watch list, but I need to see something change (MD/CEO probably) before I would make an investment. Still feels fishy to me a company which claimed an AISC of under $800 USD on a potential project has not managed to do anything but continue to dilute itself. I can't recall seeing any updated resource estimates from MZZ since June of 2020... So, what have MZZ been doing with all the money raised? (I think it's been about $30 million in the last 2 years) Looks like lots of drilling and sampling but no defined results?

I don't have a firm feel on flowthrough share placements, but I would encourage any investors here to make themselves aware of this topic. As I understand essentially in Canada you can write off your investment in junior explorers who explore in Canada against your Canadian income. There is a significant advantage to Canadian tax residents investing in MZZ and similar juniors as they can dump their shares and get a massive tax write-off as the exploration company shifts the 'losses' of exploration to the investors. I see the good and bad of this - however I also see that it may have a tendency to push down the share price as investors look to rinse and repeat.

 

[noirua]

Matador drilling picks up new gold zone in Canada across 1.2km of strike

Matador Mining Ltd has identified a new gold zone through drilling work at its Malachite project in Canada.

themarketonline.com.au

28 May 2024 11:50(AEST) -
The company has progressed 157 holes of reverse circulation (RC) drilling across the project – which is located in Newfoundland, along the Cape Ray Shear Zone – with results from the final 110 holes showing a new gold-in-bedrock anomalism.

 

[System]

On June 14th, 2024, Matador Mining Limited (MZZ) changed its name and ASX code to Aumega Metals Limited (AAM).