The company’s share price has climbed a modest 2.99% today on the back of the news, even as the ASX200 sits in the red.
Next month, the Sturec project will be the subject of a JORC mineral resource estimate upgrade adding additional recoverable metals onto the already 1Moz+ project.
Let’s take a look at what MetalsTech is reporting today.
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.
With that in mind, Metalstech posts results for the following four drillholes:
143.5m @ 1.49g/t gold and 11.4g/t silver, including:
05m @ 7.68g/t gold, 87.5g/t silver from 39m
06m @ 6.39g/t gold, 24.6g/t silver from 126m
101m @ 1.32g/t gold, including:
04m @ 6.53g/t gold from 42m
04m @ 6.33g/t gold from 56m
32m @ 2.4g/t gold and 13.9g/t silver, including:
04m @ 6.13g/t gold and 22.1g/t silver from 51m
11m @ 3.25g/t gold and 22g/t silver from 72m
50m @ 1.32g/t gold and 1.5g/t silver, including:
10m @ 3.07g/t gold and 9g/t silver from 43m
05m @ 5.45g/t gold and 14.3g/t silver from 43-48m
The big takeaway: low-mid grade gold at Sturec has been recovered in thick intersections, each with higher-grade gold occurring in pockets starting at around 30m-40m depth.
It’s worth noting that a project with a large quantity of mid-grade gold can be more valuable than a project boasting a small deposit of high-grade gold.
All things considered, the bigger picture is that MetalsTech continues to confirm widespread precious metals mineralisation on its Slovakain acreage.
With an already existing resource over 1Moz of gold and silver, September’s JORC upgrade boosting this number higher still will be closely watched by investors.
Also worth noting: silver’s role as an emerging battery metal.
“The ore body at Sturec continues to deliver significant zones of gold [and] our drilling has grown the confidence of the existing Sturec mineral resource,” MetalsTech director Gino D’Anna said.
“Mineralisation extends further to the south along strike of the existing resource and remains open down dip and down plunge.”
“We have now begun the process of updating the resource model with the aim of upgrading the [JORC] resource.”
The results of a scoping study conducted on the company’s Slovakian mine underscored the commercial potential of the project, which were reiterated in a company presentation released earlier this month.
The findings of that study ran as follows:
$1.5bn in operational cashflow at full capacity (assuming metals sales,)
85% post-tax internal rate of return
Pre-production opex of USD$64m
Project value of $643m post-tax
91% gold recovery from ore
88% silver recovery from ore
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