Why the MetalsTech (ASX:MTC) share price is rocketing 81% higher

The shares of this gold explorer are glittering on Tuesday…

| More on:
Man in mining hat with fists raised and eyes closed looking happy and excited about some news

Image source: Getty Images

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?

Investors have been driving the MetalsTech share price higher today following the release of an update on drilling activities at its flagship Sturec Gold Mine in Slovakia.

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.

“Outstanding”

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.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

More on Share Gainers