Here’s why the MetalsTech (ASX:MTC) share price is rocketing 11% today

While the gold price has retreated from record highs, the yellow metal still fetches a premium.

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The MetalsTech Ltd (ASX: MTC) share price is rocketing higher today. Shares are currently trading for 26 cents, up 10.6% in early afternoon trade having earlier posted gains of 20%.

Below we take a look at the latest resource update from the ASX gold share.

What update did MetalsTech announce?

MetalsTech’s share price is soaring today after the company reported a major Mineral Resource upgrade at its Sturec Gold Project in Slovakia.

The new Mineral Resource estimate for Sturec is 44% higher than the prior estimate. The ASX gold miner said that 93% of the Mineral Resource falls under the Measured and Indicated categories.

According to the release, the Mineral Resource also includes a higher grade subset of 6.25Mt @ 3.27 g/t AU and 19.4 g/t Ag containing 658,000 ounces of gold and 3.89 million ounces of silver using a cut-off grade at 2 g/t gold.

The new Mineral Resource estimate includes the “high-grade, southerly plunging mineralisation zone” the company targeted in its recently completed drill campaign.

Commenting on the Mineral Resource, Russell Moran, MetalsTech’s chairman said:

Sturec is proving to be a very generous ore body with tremendous resource growth potential. At over 1.5 million ounces of gold, we are well on our way to proving up a world class gold deposit. We will deploy drilling equipment in the coming weeks as we look to further grow the resource base with step out drilling, as well as exploring some higher risk, high impact discovery drilling of some exciting targets regionally and at depth.

Moran added that the planned additional drilling will offer more data for another resource update later this year along with a maiden scoping study.

MetalsTech said that Sturec mine has historically produced more than 1.5 million ounces of gold and 6.7 million ounces of silver.

MetalsTech share price snapshot

Over the past full year MetalsTech shares have gained 82%, well ahead of the 23% gains posted by the All Ordinaries Index (ASX: XAO).

Year-to-date the MetalsTech share price has continued to be a strong performer, up 22% so far in 2021.

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