MetalsTechLimited: Interim Drilling Update - Sturec Gold Mine
July 28, 2020
Highlights
- Maiden drilling program is progressing well with the first hole currently at a depth of 100.50m (planned to continue to 350m) with core recovery reported to be excellent (>95%)
- The drill hole is expected to imminently intersect the interpreted exploration target zone along plunge of STOR 3.11 at approximately 107m into the hole
- The first drill hole is expected to intersect the exploration target zone approximately 80m along plunge from STOR 3.11 which intersected:
- 89.0m @ 6.9g/t Au and 23.6g/t Ag from 114m to 203m down hole using a 3g/t Au cut-off
- within a broader intersection of
- 137.3m @ 4.6g/t Au and 16.5g/t Ag from 67.7m to 205m down hole using a 0.3g/t Au cut-off
- Gold price eclipses previous 2011 high, reaching US$1,938 per ounce on Monday
- Slovakian economy has struggled in 2020 with National Bank of Slovakia's governor Peter Kažimír stating that “the Slovak economy has found itself in free fall” while Slovakia’s Gross Domestic Product (GDP) is expected to fall by 9% and the unemployment rate is expected to rise to 10% in 2020 due to the effects of the coronavirus pandemic
- Slovakia has reported a modest 2,179 cases of coronavirus with a total of 28 deaths, relative to its European counterparts
Commenting on the update, MetalsTech Chairman, Russell Moran stated:
“We intend to provide more regular updates as we progress through our drilling program to enable our shareholders to stay informed and to assist the Company with broadening investor awareness to the project activities.”
MetalsTech Limited (ASX: MTC) (the Company or MTC) is pleased to update stakelholders on its maiden drilling program from within the underground Andrej Adit at the Company’s 100%-owned Sturec Gold Mine (Sturec).
Maiden Diamond Drilling from within the Andrej Adit
The current diamond drill program is planned to test the previously unexplored area along strike/down plunge of the existing high-grade gold zone observed within the Mineral Resource at Sturec (see figure below). The drill program was designed from within the Andrej Adit in order to commence drilling sooner and at a lower cost than through surface drilling.
The first drill hole is expected to test the interpreted extension of the high-grade plunging zone at approximately 80m along plunge from historic drill hole STOR 3.11 and on the border of the recently announced JORC (2012) Mineral Resource Estimate for Sturec.
As predicted, so far the drill hole has intersected weakly altered andesite with only some minor, localised quartz veinlets. However, an unexpected, prospective quartz vein zone was intersected early during the drilling of the current hole at between 0.5-3m depth downhole. From approximately 110m into this hole, we expect to hit the exploration target zone where we have interpreted that the high grade gold mineralisation zone extends down plunge from drill hole STOR 3.11. If this drill hole successfully intersects this high grade gold zone, we would expect to intersect lower grade gold mineralisation at first, before intersecting sections of higher gold grade within the predicted 80-100m wide mineralised zone, similar to the style of mineralisation that was intersected in STOR3.11.
STOR 3.11 intersected 89.0m @ 6.9g/t Au and 23.6g/t Ag from 114m to 203m down hole using a 3g/t Au cut-off within a broader intersection of 137.3m @ 4.6g/t Au and 16.5g/t Ag from 67.7m to 205m down hole using a 0.3g/t Au cut-off.
Refer to ASX Announcement dated 21 April 2020 and titled “MetalsTech Targets High Grade Gold Zone”.
Slovakia Economy
The economy in Slovakia has suffered enormously in 2020 amidst the coronavirus pandemic, despite cases with Slovakia remaining relatively low compared to its European neighbors at 2,179 cases with a total of 28 deaths.
The National Bank of Slovakia's governor Peter Kažimír stated that “the Slovak economy has found itself in free fall” with Slovakia’s Gross Domestic Product (GDP) expected to fall by 9% and the unemployment rate is expected to rise to 10% in the 2020 calender year.
These circumstances, combined with a gold price that has enjoyed strong pricing gains in 2020, provides the Company with confidence that Slovakia is open for business, and that a sustainable gold mining operation would be welcomed.
Background: Sturec Gold Mine
The Sturec Gold Mine is located in central Slovakia between the town of Kremnica and the village of Lučky, 17km west of central Slovakia's largest city, Banská Bystrica, and 150km northeast of the capital, Bratislava.
Sturec contains a total Mineral Resource of 21.2Mt @ 1.50 g/t Au and 11.6 g/t Ag (1.59g/t AuEq) using a 0.4g/t Au cut-off and within an optimised open pit, containing 1,026,000 ounces of gold and 7,944,000 ounces of silver (1,086,000 ounces of gold equivalent) in accordance with JORC (2012). An additional 388,000 tonnes at 3.45 g/t Au and 21.6 g/t Ag (3.60g/t AuEq) outside the optimised open pit contains an additional 43,000 ounces of gold and 270,000 ounces of silver (45,000 ounces of gold equivalent), reported in accordance with JORC (2012).
Table 1: Mineral Resource Estimate - Sturec Gold Project
Sturec Mineral Resource Estimate
Resource Estimate above 0.40 g/t Au cut-off and within an optimised open pit shell
Resource Category
Tonnes (kt)
Density (t/m3)
Au (g/t)
Ag (g/t)
AuEq*(g/t)
Au (koz)
Ag (koz)
AuEq*
(koz)
Measured
3,000
2.17
1.69
13.5
1.79
161
1291
171
Indicated
11,200
2.24
1.79
14.9
1.90
643
5373
685
Measured + Indicated
14,200
2.23
1.77
14.6
1.87
804
6664
856
Inferred
7,000
2.33
0.97
5.6
1.01
222
1280
230
TOTAL
21,200
2.26
1.50
11.6
1.59
1026
7944
1086
Resource Estimate above 2.85 g/t Au cut-off: outside optimised open pit shell
Resource Category
Tonnes (kt)
Density (t/m3)
Au (g/t)
Ag (g/t)
AuEq*(g/t)
Au (koz)
Ag (koz)
AuEq*(koz)
Measured
-
-
-
-
-
-
-
-
Indicated
114
2.28
3.39
25.6
3.57
12
94
13
Measured + Indicated
114
2.28
3.39
25.6
3.57
12
94
13
Inferred
274
2.34
3.47
19.9
3.61
31
176
32
TOTAL
388
2.34
3.45
21.6
3.60
43
270
45
*AuEq g/t = ((Au g/t grade*Met. Rec.*Au price/g) + (Ag g/t grade*Met. Rec.*Ag price/g)) / (Met. Rec.*Au price/g)
Long term Forecast Gold and Silver Price USD/oz (source: World Bank, JP Morgan): $1,500 and $20 respectively.
Gold And silver recovery from the 2014 Thiosulphate metallurgical test work: 90.5% and 48.9% respectively.
It is the Company’s opinion that both gold and silver have a reasonable potential to be recovered and sold from the Sturec ore using Thiosulphate Leaching/Electrowinning as per the recoveries indicated.
ENDS
For further information, contact:
Russell Moran
Chairman
M +61 415 493 993
Nathan Ryan
Investor Relations
M +61 420 582 887
nathan.ryan@nwrcommunications.com.au
Gino D’Anna
Director
M +61 400 408 878
This document contains forward-looking statements concerning MetalsTech. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes.
Forward looking statements in this document are based on the company’s beliefs, opinions and estimates of MetalsTech as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.
Competent Persons Statement
The information in this announcement that relates to Exploration Results is based on information compiled by Dr Quinton Hills Ph.D., M.Sc., B.Sc. Dr Hills is the technical advisor of MetalsTech Limited and is a member of the Australasian Institute of Mining and Metallurgy (No. 991225). Dr Hills has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Hills consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.
The information in the report to which this statement is attached that relates to Mineral Resources for the Sturec Gold Deposit is based on information compiled by Mr Chris Grove, who is a Member of The Australasian Institute of Mining and Metallurgy (No. 310106). Mr Grove is a full-time employee of Measured Group Pty Ltd and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Grove consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.