The Metalstech Ltd (ASX: MTC) share price is soaring 14% into the green during this afternoon's session and now trades at 75.5 cents.
Metalstech shares are on the move after the lithium and cobalt exploration company announced a key update today regarding its gold mine in Slovakia.
Here's what we know.
What did Metalstech announce?
Metalstech gave details of what it called a "bonanza gold hit" at its Sturec Gold mine in Slovakia.
The company has now completed two diamond drill holes at the site, aimed at "increasing confidence in the mineralisation zone" outside the existing Sturec resource.
One of the drill holes, UGA-18, intersected a thick, mineralised zone "for an extraordinary 622 'grams-metres' including higher grade zones".
This resulted in a "new record bonanza result" 81 metres downhole from the second drill hole at the site.
Today's announcement follows a similar announcement from the first drill hole at the site, UGA-17, last week. Assay results from this hole offer basically the same benefits to the Sturec site, as per the company.
Metalstech is confident that the assay results obtained from UGA-18, alongside the assay result in UGA-17, offers "strong confidence to the mineralised zone interpretation" to the existing Sturec resource.
The company is also finalising a report on the metallurgical test work, which investors can expect to see released next week, per the release.
One important factor is that the "intersections are not a true thickness, as the drill hole was drilled at an angle to the mineralised zone due to the location of the underground drill site relative to the target zone".
Additional drilling is therefore necessary to "better constrain the interpretation", as per Metalstech.
The company itself certainly appears happy, with chairperson Russel Moran saying:
Sturec is shaping up to be an extraordinary deposit with bonanza grade potential…we are hopeful we will continue to hit these incredible mineralised ones which can expand on and help grow what is already a very exciting and significant gold resource.
Shareholders appear to agree too and are buying Metalstech in droves today, despite the price of gold coming off 3 previous highs since June to trade at US$1,764.93/t.oz.
Metalstech share price snapshot
The Metalstech share price has been a major winner on the ASX this year, booking a gain of 268% since January 1. It's rallied over the past month by over 179% and gained another 29% this past week.
This extends its return over the past 12 months to 372%, well ahead of the S&P/ASX 200 index (ASX: XJO)'s gain of about 25% in this time.
