- MetalsTech (MTC) delivers “robust” scoping study results for its Sturec gold mine in Slovakia
- The study confirms a base case scenario of a combined open cut and underground operation to produce one million ounces of gold and silver concentrate over 15 years
- The study outlines positive economics with an all-in sustaining cost of US$754 per ounce, pre-production capital costs of US$64.5 million and a payback period of just 2.3 years
- MetalsTech is undertaking drilling at the project which will support a mineral resource upgrade as well as a pre-feasibility study
- MTC shares are up 6.85 per cent to trade at 39 cents each at 1:47 pm AEST
MetalsTech (MTC) has delivered a scoping study for its wholly-owned Sturec gold mine in central Slovakia.
The company engaged Measured Group to complete the study which aimed to evaluate four mine development options based on open cut mining, underground mining and a combination of the two.
Measured Group confirmed the highest value option would be a combined open cut and underground mining operation producing a total of one million ounces of gold and silver concentrate with a plant throughput of 1.5 million tonnes per annum (Mtpa) over an initial 15-year mine life.
Executive Director Gino D’Anna said the scoping study confirmed the mining method, technical aspects and the economic viability of a 1.5Mtpa operation.
“The design basis has been responsive to previous concerns, focusing on generating a high-value gold concentrate without the use of cyanide whilst also minimising environmental footprint and minimising surface area disturbance,” Mr D’Anna said.
The scoping study also showed potential for a “robust” mining operation at Sturec with a forecast all-in sustaining cost (AISC) of US$754 (A$1089) per ounce gold equivalent and a capital payback period of just 2.3 years from first production.
According to the company, production from the Sturec mine is expected to have one of the lowest unit operating costs (AISC) when compared to peer gold concentrate operations.
Based on the current spot gold price of US$1780 per ounce, the Sturec gold mine will deliver an operating margin of US$1026 per ounce and a pre-tax net present value of US$591 million. The internal rate of return is 102.5 per cent.
MetalsTech expects pre-production capital costs to be US$64.5 million with total life-of-mine capital to be US$82.8 million.
The Sturec Gold Mine has a mineral resource estimate (MRE) of 38.5 million tonnes at 1.23 g/t gold and 8.8 g/t silver for 1.52 million ounces of gold and 10.93 million ounces of silver.
An additional 148,000 tonnes at 3.55 g/t gold and 12.6 g/t silver for 17,000 ounces of gold and 60,000 ounces of silver sits outside the optimised open pit shell on an underground mining basis.
The scoping study is based on the MRE but doesn’t take into account the current drilling at Drill Chamber #3 and #4, reportedly demonstrating the upside in the economics and size of the deposit.
Once the phase four diamond drilling effort is complete, the company plans to upgrade the resource and will also initiate a pre-feasibility study for the Sturec mine.
MTC shares were up 6.85 per cent to trade at 39 cents each at 1:47 pm AEST.