Matador Exploration Inc.

Matador Exploration Inc.

August 09, 2005 11:09 ET

Matador and Austminex Close Coolgardie Gold Acquisition; Underground Drilling to Commence Shortly

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 9, 2005) - Matador Exploration Inc. (TSX VENTURE:MXN) ("Matador") and its Western Australia-based partner Austminex Limited (ASX:ATX) ("Austminex", soon to be renamed Focus Minerals Limited) will shortly commence the most intensive and comprehensive exploration & development program ever seen in the historic Coolgardie region after today completing the acquisition of the Coolgardie Gold Project ("CGP") from Leviathan Resources Limited and Herald Resources Limited (the "Vendors").

Matador's President and CEO, John Williamson, said, "The Joint Venture will pursue an intensive and systematic exploration program at Coolgardie to establish a long-term reserve and resource inventory. This will bring to fruition a concept for consolidation of the historically fragmented region that was first conceived by Austminex's Exploration Manager, Chuck McCormick, over a decade ago."

"We are thrilled to be a part of this outstanding project and are looking forward to applying our technical and geological expertise as Operator. Our team of geologists is compiling an extensive database for the region and prioritizing key targets. Matador has extensive experience in exploring prolific greenstone belts such as Coolgardie, where we believe there is significant potential for the discovery of further multi-million ounce orebodies."

Matador and Austminex will commence drilling later this month at key targets within the newly acquired CGP after the newly established Joint Venture made an outstanding aggregate settlement payment of A$3,464,053 cash (less rehabilitation costs for the CGP), plus the issue of 5 million Austminex shares to the Vendors.

The final payment follows the receipt of all regulatory approvals for the acquisition and recent announcements by both companies regarding funding arrangements. Matador has secured C$6 million in funding through a secured convertible debenture from fellow TSX-V listed Committee Bay Resources Limited (TSX VENTURE:CBR).

The joint acquisition of the CGP is the most significant regional amalgamation of tenement holdings in the Eastern Goldfields of Western Australia since the Kalgoorlie Super Pit was developed in the 1980s. It is expected to revitalize gold exploration and development at Coolgardie by bringing a coordinated, regional approach to the newly consolidated tenement holdings for the first time in history.

Following the acquisition, the joint venture - known as the Redemption Joint Venture after one of the major regional gold structures at Coolgardie - will control a 210km2 consolidated regional tenement holding (including Austminex's original ground holdings in the Coolgardie-Widgiemooltha region) with an Indicated Resource of 315,720 contained ounces and Inferred Resource of
1,080,825 contained ounces, plus a 1.2mtpa treatment plant (currently on care and maintenance).

On behalf of the Board


John Williamson, P.Geol., President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Matador Exploration Inc.
    Bernie Kennedy
    Investor Relations Manager
    (604) 331-2269 or (888) 331-2269