The MetalsTech Ltd (ASX: MTC) share price has started the month in incredible form.
In morning trade, the gold explorer’s shares were up as much as 81% to a 52-week high of 34.5 cents.
The MetalsTech share price has since dropped back a touch but currently remains up 52% at 29 cents.
Why is the MetalsTech share price rocketing higher?
According to the release, the company has completed sixteen diamond drill holes as part of the company’s maiden underground drilling program from within the Andrej Adit. This signals the end of its phase 1 drilling program, with all assay results now received and analysed.
The good news is that the phase 1 drilling program has been a big success, with the company recording hit after hit of visible gold.
MetalsTech Chairman, Russell Moran, explained: “Our first diamond drilling campaign at Sturec has been nothing short of outstanding. We have hit visible gold in 9 out of 16 holes with bonanza hits in 11 out of 16 holes.”
“We continue to hit thick high grade gold intersections as we step out from the existing 1Moz+ resource. We are eagerly awaiting what we hope will be a significant upgrade to the resource model over the next few weeks and look forward to updating stakeholders on this.”
Mr Moran also added further drilling will soon commence and be funded by its recent deal with Lithium Royalty Corp.
He said: “Our recent $18 million deal signed with Lithium Royalty Corp, including a $6m cash payment to MetalsTech provides us with an opportunity to be more aggressive with our resource expansion drilling, which we will restart later this month.”
“We could not as for a better macro environment for the gold sector and we believe the timing for our planned scoping study later this year will be perfect. Your company is at the start of an exciting journey in 2021,” Mr Moran conclude.
The MetalsTech share price has now more than doubled in value since this time last week.