As the gold price eclipses its previous 2011 all-time high, MetalsTech (ASX: MTC) is about to intersect the target zone within the Andrej Adit at the Sturec gold mine in Slovakia.
The hole is planned to reach a 350m depth and is expected to hit the target zone along plunge of STOR 3.11 which uncovered the broad high-grade intersection of 89m at 6.9 grams per tonne gold and 23.6g/t silver from 114m.
This was identified within an even wider intercept of 137.3m at 4.6g/t gold and 16.5g/t silver from 67.7m.
The maiden underground drilling program at the adit kicked-off last week and has now reached a depth of 100.5m.
MetalsTech noted core recovery was “excellent” and exceeded 95%.
“We intend to provide more regular updates as we progress through our drilling program to enable our shareholders to stay informed and assist the company with broadening investor awareness to the project activities,” MetalsTech chairman Russell Moran said.
Timely activity as gold surges
MetalsTech’s drilling program at Sturec is timely as gold surpassed its previous 2011 high this week.
The precious metal hit an intraday high of US$1,975 per ounce on Monday before pulling back slightly to last trade at US$1,955.18/oz.
Meanwhile, its sister metal silver has also rocketed in recent weeks, with the metal climbing from US$18/oz at the start of July to trade at US$25.23/oz this morning.
Unlike other gold explorers, MetalsTech is already mining at Sturec.
The company plans to use mined ore samples to complete metallurgical testwork using thiosulphate-based gold extraction technology, which it intends to use to process the ore.
In the meantime, to begin generating cash flow from the mined ore and take advantage of prevailing precious metal prices, MetalsTech is looking at toll treatment options with nearby producers.
MetalsTech noted it was confident the Slovakian Government and community will welcome its sustainable gold mining operation.
The company pointed to the coronavirus pandemic having a severe impact on the country’s economy despite case numbers of 2,179 and 28 deaths remaining “relatively low” compared to its neighbours.
Slovakia’s National Bank Governor Peter Kazimir has predicted the country’s GDP will shrink by 9% in 2020 while unemployed will hit 10%.
“These circumstances, combined with a gold price that has enjoyed strong pricing gains in 2020, provides the company with confidence that Slovakia is open for business and that a sustainable gold mining operation would be welcomed,” MetalsTech stated.