Why the Metalstech (ASX:MTC) share price is climbing 7% today

The resource explorer’s latest gold update appears to have excited investors…

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a woman in a business suit sits at her desk with gold bars in each hand while she kisses one with her eyes closed. Her desk has another three gold bars stacked in front of her.

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The Metalstech Ltd (ASX: MTC) share price is leaping higher in morning trade today. At the time of writing, it is up by 7.14% to 45 cents. However, earlier in the day it was as high as 49 cents, a 16% gain on its previous closing price.

Below we look at the ASX resource explorer’s latest gold update that looks to be spurring investor interest.

What gold update was announced?

The Metalstech share price is surging after the company reported it had identified visible gold at its 100%-owned Sturec Gold Mine, in Slovakia.

The explorer is engaged in phase 2 of a diamond drilling campaign. During geological logging and sampling it said visible gold was identified at 97.6 metres “within a quartz filled vein/stockwork/breccia zone, variably rich in fine to very fine grained sulphides and hosted within variably argillic altered andesite host rock from approximately 75 metres to 120 metres down hole in the drill core…”

The hole in question, UGA-20, was completed to a depth of 140.5 metres.

Metalstech said the core from UGA-20 is currently being sampled and will be dispatched to a lab for analysis “as soon as possible”. The company will provide a market update once those results are in.

October tailwinds for the Metalstech share price

Gold prices have been edging higher in October, up 1.3% so far this month to US$1,782 per troy ounce.

But the Metalstech share price enjoyed an even bigger boost earlier this month from another positive gold announcement out of Sturec.

On 4 October its shares surged 17% intraday after the company reported it had encountered “bonanza gold” at the project.

Following the bonanza gold strike, Metalstech chairman Russel Moran said:

Sturec is shaping up to be an extraordinary deposit with bonanza grade potential … we are hopeful we will continue to hit these incredible mineralised zones, which can expand on and help grow what is already a very exciting and significant gold resource.

Metalstech share price snapshot

The Metalstech share price has been a standout performer over the past full year, up around 180% in 12 months. For comparison, the All Ordinaries Index (ASX: XAO) gained 21% over that same time.

Over the past month, Metalstech shares have gained 12%.

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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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