Metalstech (MTC.AX) has been quiet in the past few months but in the final week of March, the company did release an update on the exploration programme on its Sturec gold project in Slovakia. The surface exploration activities were focusing on four separate targets Vratislav, Wolf, Volle Henne and Katerina.
Vratislav is located about 150 meters north of the Sturec gold resource and has been explored by the previous operators which completed a total of six diamond drill holes (so they barely scratched the surface). On the Vratislav project, three veins have been identified and Metalstech has completed a rock chip sampling assay program on these vein zones in an attempt to figure out new drill targets.
Wolf is located a little bit further to the north but still within walking distance from Vratislav and the main resources which are just a little bit further to the south from Wolf. The mineralization at Wolf has been traced over a total length of 300 meters and to a depth of up to 100 meters although previous operators only completed about 10 holes at Wolf. The company continues to focus on the intersection between the Teich and Schindler veins where past drilling at Vratislav encountered the best results, and Metalstech hopes or expects to replicate the historical drill success by applying the same exploration approach.
The two other areas of interest, Katerina and Volle Henne, are respectively 150 meters to the west and 350 meters to the northwest from the main resource at Sturec. As you notice, all four high priority drill targets are within a 1 kilometer radius from the main resource and that could work in Metalstech’s advantage. Satellite deposits don’t have to be big to be viable if the mineralized rock can be shipped to a central processing facility nearby before sending the concentrate across the border for further refining.
Metalstech has also provided an exploration target on each of the areas of interest and Metalstech anticipates to add between 2.2 million and 5.15 million ounces of gold-equivalent to the greater Sturec resource.
Metalstech’s exploration update is quite detailed and investors can read the entire document and the assay results from the sampling program here.
Meanwhile, the exploration activities at the main Sturec resource are obviously still ongoing as well and Metalstech has released the assay results from three new holes. Hole 20 encountered 61 meters of 0.97 g/t gold and 12.2 g/t silver including a higher grade interval of 19 meters containing 2.07 g/t gold and 29.1 g/t silver while hole 22 encountered in excess of 105 meters containing 0.55 g/t gold and 3.2 g/t silver. While the grades are ‘okay’, it’s important to know these holes were drilled outside of the boundaries of the existing resource estimate and will thus increase the tonnage and the ounces at Sturec.
The scoping study on the Sturec gold project is expected to be published by the end of this month. We are looking forward to seeing how many ounces will end up in the mine plan and how the inflation is impacting the initial and sustaining capital expenditures. This maiden economic study will help to figure out the true value of the Sturec gold project and this will allow Metalstech to start building the project and the company from there on as it will try to further increase the resources and bring the additional ounces into the mine plan.
Disclosure: The author has no position in Metalstech. Metalstech is a sponsor of the website. Please read our disclaimer.
