Metalstech share price soars 11% on ‘milestone achievement’

rising gold share price represented by a green arrow on piles of gold blockrising gold share price represented by a green arrow on piles of gold block

The Metalstech Ltd (ASX: MTC) share price is lifting into the green in early trade on Wednesday.

At the time of writing, the gold and lithium explorer is trading around 11% higher at 40.5 cents apiece following the release of a company announcement.

Metalstech has caught a large bid today with investors driving the share price higher on a volume nearly 3 times the 4-week trading average.

What did Metalstech announce?

The company announced the results of the scoping study concerning its fully-owned Sturec Gold Mine in Slovakia.

The release notes the study results indicate that “project economics and technical viability are highly encouraging” in the company’s quest to become a low-cost gold concentrate producer.

Projections from the study indicate the Sturec mine could support gold and silver production of around 1 million ounces over an initial mine life of 15 years open cut and 10 years underground.

It also showed plant capacity could reach up to 1.5 million tonnes per annum. Based on the current gold price of US$1,780/oz, Metalstech says the net present value (NPV) of the project is A$512 million.

This is built on the fact mining at Sturec exhibits an operating margin in excess of 267%, the company says.

Speaking on the results, CEO Gino D’Anna said the study brings the “rebirth of one of Slovakia’s historic mining operations”.

“The scoping study has demonstrated potential for a robust mining operation at Sturec with a forecast [all-in sustaining cost] of US$754/ounce and a capital payback period of 2.3 years (post-tax) from first production”, he added.

The Metalstech share price is up more than 122% in the past 12 months, or 40% this year to date.

The post Metalstech share price soars 11% on ‘milestone achievement’ appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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