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MetalsTech secures Sturec project, share price soars

Materials
ASX:MTC      MCAP $40.62M
20 November 2019 12:55 (AEST)

MetalsTech is up over 500 per cent today after acquiring 100 per cent of the Sturec Gold Project in Slovakia.

The company has entered a binding option agreement with Arc Minerals and Ortac s.r.o.

Under the agreement, MetalsTech has 45 business days to complete technical, legal and financial due diligence on the project. A significant amount of desktop technical due diligence has already been completed.

MetalsTech will acquire 100 per cent of Arc’s SPV shares for A$450,000 cash upon exercise of the option, in addition to A$300 000 cash in six months.

Arc has also been granted a royalty equal to A$2 for every ounce of gold above current resource estimates. The eligible resource must also exceed 1.5 million ounces at a greater grade than 2.5g/t gold equivalent.

The Sturec Gold Project is located in central Slovakia, 150 kilometres northeast of the capital Bratislava.

It consists of the Kremnica Mining Licence and the broader Lutila Exploration Licence.

Gold mining commenced at Sturec in the 8th century, with historical production totalling 1.5 million ounces of gold and 6.7 million ounces of silver.

Production was mostly from underground mine workings but also from some small open pits.

The Slovak Geological Survey carried out extensive exploration in the Sturec area from 1981 to 1987 as well as extensive adit and cross-cut development.

The deposit is interpreted as part of a low sulfidation epithermal system and is continuously mineralised for 1200 metres along strike and a depth of 300 metres.

Mineralisation occurs in large banded massive quartz veins, smaller quartz veins and sheeted veins.

Geological work completed at Tournigan in 2005 has demonstrated that gold and silver mineralisation within the sheeted veins is primarily localised in areas immediately adjacent to the main vein zones.

Gold occurs freely and in non-refractory association with sulphides and with silver as electrum.

Average gold grades throughout the deposit are approximately 2g/t gold but high-grade zones can exceed 30g/t gold locally. Silver/gold ratios vary but average 8:1.

“Assuming we are satisfied with our due diligence, Sturec has the potential to deliver strong shareholder value given the current outlook for the gold sector and the advanced nature of the asset,” Chairman Russell Moran commented.

“If we complete on the option, we will immediately get to work on a series of high impact and low-cost technical exercises to bring the project from JORC 2004 to JORC 2012 standard,” he added.

MetalsTech is now up 243 per cent with shares trading for 4.8 cents apiece 11:49 am AEDT.

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