This tiny ASX mining share surged 14% today. Here's why

Investors have reacted positively to a drilling update. Here are the details.

Key points
  • This Metalstech share price soared 14% today on the back of a drilling update
  • It expects to report a "significant batch" of results from its Slovakian mine
  • This ASX mining share noted gold prices could hit more than US$2,000 per ounce 

The Metalstech Ltd (ASX: MTC) share price had a stellar day on the market today. The micro-cap ASX mining share surged 13.95% to close at 24.5 cents.

So why did this miner of lithium, cobalt, and gold have such a good day?

Let's take a look.

Five people in an office high five each other.

Image source: Getty Images

Gold update

The Metalstech Ltd (ASX: MTC) share price exploded today. Investors appeared to react positively to an update released before market open this morning.

The company provided a drilling update from its 100%-owned Sturec gold mine in Slovakia.

Metalstech said diamond core drilling is continuing to "progress well" during the Slovakian winter. Explorers are completing a drill hole known as UGA-30 within drill chamber three. Metalstech said the drilling has targeted areas "both within and outside" the existing mineral resource boundary.

The company expects to report a "significant batch" of drill results in the future. Construction of a fourth drill chamber is also underway.

In the announcement that drove up the Metalstech share price today, the miner said:

The company is currently working with an independent consultant to model a JORC exploration target for the historic mineralisation identified outside the current Sturec Mineral Resource Estimate area, including Wolf, Katerina, Volle Henne and Vratislav where extensive historical drilling and production has occurred.

The company has also engaged Measured Group to complete a scoping study based on a high grade, low impact, bulk underground mining operation at Sturec focussing on the higher grade zones within the mineral resource estimate.

Metalstech said this scoping study is going well and earmarked for completion in April. Finally, the company provided an update on the gold price.

It said the gold price is trading above US$1,980 per ounce. The company noted multiple analysts are increasing long-term forecasts to more than US$2,000 per ounce.

Metalstech share price snapshot

The Metalstech share price has leapt 90% in a year but has fallen nearly 14% year to date.

In the past month, Metalstech shares have slipped by nearly 6%, while they are surging 28% over the past week.

MetalsTech has a market capitalisation of about $41.7 million based on its current share price.

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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