MetalsTech (ASX:MTC) shares are up 5% in late morning trade to 42c as the company unveils new high-grade gold hits at its Sturec gold-silver mine in EU member state Slovakia.
Today’s results are borne from an infill drilling run. The company notes to its shareholders that due to the acute angle of drilling, true thickness is distorted in today’s results.
Investors will have a better idea of thickness in the near future, with more surface drilling to commence soon.
Investor information provider Undervalued Equity classifies high-grade gold as that above five grams of gold per tonne (5g/t), but many Australian projects boasting 4g/t results are also widely accepted as high grade projects.
Silver, meanwhile, is considered high grade in concentrations over 50g/t.
Compare that to today’s results:
Drillhole UGA-43
04m @ 3.67g/t gold and 22.3g/t silver from 12m depth
12m @ 2.26g/t gold and 13.5g/t silver from 40m depth
07m @ 5.83g/t gold and 18.8g/t silver from 150m depth
Drillhole UGA-44
23m @ 2.53g/t gold and 20.3g/t silver from 05m depth
07m @ 1.58g/t gold and 27.3g/t silver from 87m depth
Drilling continues at the Chamber IV and Drill Chamber II targets, which geotechs are hopeful will return results that allow the company to confirm an extension to gold mineralisation further south.
Once drilling those two targets are complete; surface drilling will commence (as opposed to the infill drilling run reported today.)
Back in August, a scoping study for the Sturec project confirmed a combined gold and silver resource over 1Moz.
Later that same month, the company flagged that it would be further upgrading its JORC resource in September.
While that process has been delayed, the ongoing drilling at the two Chamber targets; plus the surface drilling to follow, will both add to the resource (should the gold be there.)
MetalsTech notes the surface drilling will test vertical depths that lie underneath the existing depth captured by the JORC resource where the geotech teach is confident further gold is deposited.
Once the JORC is upgraded, the company will then move to pre-feas.
It’s worth recapping the results of the scoping study published in August. The big takeaways:
Pre-tax value of $853m
Post-tax value of $650m
15 year Life of Mine (LoM)
Pre-production spend of $93.27m
Total pre-tax cashflows of $1.5bn
Internal rate of return at 102.5%
Capital payback of 2.3 years from first production
Total capital cost of $119m
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