Name of the Project
Cape Ray gold project.

Location
The project is located in south-west Newfoundland, Canada.

Project Owner/s
Matador Mining.

Project Description
A scoping study has confirmed the Matador project’s viability as a standalone gold operation with an initial seven-year life-of-mine (LoM). LoM gold and silver production is estimated at 483 000 oz and 863 600 oz respectively.

The project has total indicated and inferred resources of 12.9-million tonnes grading 2.02 g/t gold and 7 g/t silver.

The processing plant is designed to process 1.2-mllion tonnes a year of run-of-mine ore, with an average head grade of 2 g/t gold over the LoM and 2.56 g/t of gold during the first four years of production.

The plant incorporates a single processing line, including a primary jaw crusher, secondary and tertiary cone crushers and a crushed ore bin to provide 12 h of surge capacity before the milling circuit.

The grinding circuit comprises a single-stage ball mill, with gravity concentration, followed by a leach-carbon-in-leach circuit, elution and carbon regeneration, gold smelting, tailings thickening and cyanide destruction facilities.

The detoxified tailings stream will be stored in the tailings management facility.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of C$256-million and an internal rate of return of 61%, with a payback of 1.75 years.

Capital Expenditure
Initial capital expenditure is estimated C$145.4-million, including preproduction capital of C$8.7-million.

Planned Start/End Date
Not stated.

Latest Developments
The company’s primary focus now is to expand the resource base to extend the LoM, with a focus on shallow openpit deposits that support the overall objective of being one of the highest-grade opencut operations in the world.

Key Contracts and Suppliers
DRA Global (process and infrastructure design, capital and operating expenditure); Various (geology and resources); Orelogy Mining Consultants (openpit optimisation and mine planning); SRK (tailings and management facili­ties); Management Facilities (environmental applications Group environmental and permitting).

Contact Details for Project Information
Matador Mining, tel +61 8 6117 0478 or email ua.moc.gninimrodatam@ofni.