MetalsTech (ASX: MTC) is poised to kick off drilling at the historic Andrej Adit within the Sturec gold mine where previous results included exceptionally thick high-grade intersections.
The company revealed underground drilling at Andrej will “commence shortly” with the program to comprise nine diamond holes for 3,000m.
Drilling will target two locations within the adit, with MetalsTech claiming it will prioritise drill order depending on results.
The program will follow on previous results from STOR 3.11 which intersected 137.3m at 4.6 grams per tonne gold and 16.5g/t silver from 67.7m, including 89m at 6.9g/t gold and 23.6g/t silver from 114m.
MetalsTech chairman Russell Moran said the upcoming drilling program was possible because the company’s technical team had come up with an “innovative” solution enabling it to begin sooner and at a lower cost.
“The drill bit will be turning shortly, and we look forward to seeing where STOR 3.11 takes us as we chase Sturec’s high-grade gold mineralisation,” he added.
Positioned to advance Sturec
Once permits have been received, MetalsTech has planned a surface drilling campaign that will involve 36 diamond drill holes.
The company anticipates it will receive the permits in the current quarter.
To fund ongoing exploration, MetalsTech previously executed an agreement to issue existing company financier Zhengrong Chen with $2.5 million fixed price convertible notes.
Combined with a $1.25 million placement, MetalsTech will have about $4.1 million in available funds.
Fast-track to mining
MetalsTech entered an option to acquire Slovakia-based Sturec late last year.
The project had an historic measured and indicated resource of 1.01 million ounces of contained gold with an average grade of 2.05g/t.
Additionally, historic production at Sturec exceeded 1.5Moz gold and 6.7Moz over hundreds of years.
Since acquiring the central Slovakian project, MetalsTech has delivered a JORC resource of 21Mt at 1.5g/t gold and 11.6g/t silver for 1.026Moz gold and 7.94Moz silver. This estimate is within an optimised open pit shell.
The underground resource is 388,000t at 3.45g/t gold and 21.6g/t silver for 43,000oz gold and 270,000oz silver.
As part of the company’s plan, MetalsTech has re-started mining at Andrej. The ore has been used to complete metallurgical testwork using thiosulphate-based gold extraction technology.
MetalsTech is currently negotiating with a nearby gold producer to reach an interim processing solution, including toll treatment options to generate gold concentrate and cash flow.