The Metalstech (ASX:MTC) share price is flying today. Here’s why.

The Metalstech Ltd (ASX: MTC) share price is flying 10% higher today as the company strikes gold at its Sturec mine.

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The Metalstech Ltd (ASX: MTC) share price is storming higher today as the company released its quarterly report. Shares in the gold miner are up 10% at the time of writing to a price of 16 cents. However, the company has traded as high as 19.5 cents this morning.

The news comes as the company announced high grade gold deposits at the Sturec gold mine.

Quarterly report

Metalstech made some solid steps in the first quarter of the financial year in what has been a transformative period for the company.

Despite the coronavirus pandemic, the company has added considerable value to its Sturec Mine in Slovakia. During the quarter, the company delivered a maiden 1.069 million ounces of solid gold and 8.214 million ounces of silver. In order to continue its positive results, the company also secured an extension to its underground mining licence.

With impressive exploration results, Metalstech took the opportunity to raise capital. The miner successfully raised $3.3 million through institutional investors. The funds raised will be used on underground railway development and to bankroll future exploration.

In terms of the company’s cash flows, there was no income to speak off. As such Metalstech announced a net loss of $367,000 for the quarter. However, with the addition of the capital raise, Metalstech cash position increased to a total of $2.9 million.

Sturec gold discovery

The discovery of high grade deposits at Sturec underlines the company position that exploration is key to its future. It also ratifies the decision to invest in its underground mining licence.

The gold was intersected at 252m, and is estimated to be an extension of the Schramen Vein which was the main vein for historical production.

About the Metalstech share price

The micro-cap miner is a resource exploration company currently focused on its Sturec gold mine in Slovakia. It is also listed on the Paris Stock Exchange and owns a mine in Canada.

The Metalstech share price has been on a strong positive run so far this year. Since the start of the year, its shares have risen from a price of 4 cents to 16 cents today. That’s a 300% increase in just 10 months.

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