Another visible gold hit for MetalsTech ahead of upcoming resource upgrade
MetalsTech shares pull back after an extraordinary ten day winning streak where it rallied 52.7%.
Source: iStock
Mentioned
KEY POINTS
- MetalsTech delivers another visible gold hit amid its Phase II diamond drilling campaign
- The company expects to deliver a JORC Mineral Resource estimate later this month
- MetalsTech shares snap a ten day winning streak where the company's stock rallied 52.7%
There's been no shortage of high grade gold hits from MetalsTech (ASX: MTC) in the lead up to an upcoming resource upgrade for the company's Sturec Gold Project in Slovakia.
An ongoing Phase II diamond drilling campaign identified visible gold in a ~1cm thick, quartz-pyrite veinlet. The gold was made up of many less than 0.5mm sized grains at the UGA-52 drill hole.
Source: MetalsTech
MetalsTech shares are down -4.8% in early trade, likely weighed by the resources led sell off for the broader S&P/ASX 200. The pullback marks an end to a ten day winning streak where MetalsTech shares rallied 52.7% between 9 to 23 September.
The bigger picture
MetalsTech has been aggressively drilling in the lead up to an upcoming JORC mineral resource estimate to build on its existing 1Moz project.
An August scoping study revealed a post tax net present value of $650m for Sturec versus its current market cap of $67.5m. The capital costs associated with the project came in at $119m with a capital payback of 2.3 years.
But MetalsTech isn't stopping here as it believes there is "significant potential" to increase the current mineral resource with "further drilling planned to test the exploration target area where mineralisation remains open at depth and/or along strike."
While the company has confirmed a 1Moz resource, its aspiring for a JORC exploration target of 2.2m to 5.15m ounces. Once the company upgrades its resource estimate, it expects to commence a pre-feasibility study.
The UGA-52 drill-hole was positioned as an extension drill hole below the existing Mineral Resource. The core samples have been sampled and dispatched to the laboratory for further testing. MetalsTech expects to provide an update for UGA-52 in the coming weeks.
MetalsTech share price chart (Source: TradingView)
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