Metalstech (ASX:MTC) share price leaps 7% on drilling update

Metalstech shares are enjoying gains today after a drilling update.

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miner giving 'ok' sign in front of mine

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The Metalstech Ltd (ASX: MTC) share price has stepped into the green in afternoon trade on Monday.

At one point today, Metalstech shares were changing hands 7% higher at 46 cents each and are now trading at 44 cents apiece.

Investors are buying the lithium and cobalt company’s shares on the back of a drilling update announced earlier today.

What did Metalstech announce?

Metalstech announced it had made the “discovery of historic high-grade intersections in untested regional target zones” at its Sturec gold mine in Slovakia.

In addition, a “mapping and rockchip exploration program” has commenced at the site to “help plan and design a regional exploration drilling program” that will follow up on these high-grade intersections.

The drilling will “attempt to understand the structural setting and extent” of the high-grade mineralisations that were intersected.

Metalstech also advised that “importantly”, these historic high grade mineralised zones “sit outside of the updated 2021 Sturec mineral resource estimate area” announced in July.

Following the results announced today, Metalstech advised exploration is to “focus on three main prospects outside the updated 2021 Sturec mineral resources estimate area”.

The three prospects are the Vratislav, Wolf and Katerina prospects respectively, located at the company’s Sturec mine.

Investors have bought the news and are still buying Metalstech’s shares into the afternoon session on Monday.

This continues an impressive run for the Metalstech share price which has climbed a further 48% into the green over the last week.

What did management say?

Commenting on the results, Metalstech chair Russel Moran said:

We’ve always had the belief that Sturec possesses incredible prospectivity outside of the existing core zone where the current mineral resource is located.

Speaking on the company’s next moves, Moran added:

The results from these prospects clearly warrant the company undertaking further exploration as part of our planned regional drilling program. We look forward to expanding our drill campaign to include these and other regional targets as we continue to develop a better understanding of the growth potential of the deposit.

Metalstech share price snapshot

The Metalstech share price has climbed 110% this year to date, extending the last 12 month’s gain to 100%.

Over the last month alone, it has jumped a further 115% into the green.

These results have outpaced the S&P/ASX 200 Index (ASX: XJO)’s return of around 25% over the past year.

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The author Zach Bristow has no positions 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 Bruce Jackson.

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