MetalsTech: Significant Exploration Target Defined at the Sturec Gold Project
30 March 2022
Highlights
- Significant JORC (2012) Exploration Target defined at the Company’s 100% owned Sturec Gold Mine, central Slovakia, of between 37.9Mt and 58.2Mt at an average grade of between 1.79g/t AuEq and 2.75g/t AuEq for total ounces of between 2.18M oz AuEq and 5.15M oz AuEq
Prospect Name
Grade
(g/t AuEq)
(Low)
Grade
(g/t AuEq)
(High)
Tonnage (t)
(Low)
Tonnage (t)
(High)
Contained Gold (AuEq)
(Low)
Contained Gold (AuEq)
(High)
Volle Henne
3
4.5
7,200,000
9,600,000
694,456
1,388,912
HG Extension
3
4.5
1,440,000
1,920,000
138,891
277,782
Wolf and Vratislav
1.5
2.5
10,150,000
14,500,000
489,495
1,165,464
North Wolf
1.5
2.5
7,250,000
10,875,000
349,639
874,098
Katerina
1.5
2.5
2,250,000
4,500,000
108,509
361,696
Depth Extension
1.3
2
5,774,250
9,623,750
241,340
618,821
South Ridge
1.3
2
3,840,000
7,200,000
160,497
462,971
TOTAL
2,182,827
5,149,745
*The potential quantity and grade of the Exploration Target is conceptual in nature and therefore is an approximation. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The Exploration Target has been prepared and reported in accordance with the 2012 edition of the JORC Code.
- Exploration Target* is entirely separate from the existing JORC (2012) Mineral Resource Estimate at the Sturec Gold Mine which is 38.5Mt @ 1.23 g/t Au and 8.8 g/t Ag, containing 1.522Moz of gold and 10.93Moz of silver using a 0.26g/t Au cut-off and within an optimised open pit shell
An additional 148kt @ 3.55 g/t Au and 12.6 g/t Ag containing 17koz of gold and 60koz of silver using a 2.00g/t Au cut-off sits outside the optimised open pit shell on an underground mining basis JORC (2012) Mineral Resource includes a higher-grade subset of 6.25Mt @ 3.27 g/t Au and 19.4 g/t Ag containing 658Koz of gold and 3.89Moz of silver using a cut-off grade of 2 g/t Au which has been a key focus for the Company’s ongoing scoping study assessment
- Significant potential exists to increase the size of the Mineral Resource with further drilling planned to test the Exploration Target* area where mineralisation remains open at depth and/or along strike
- Scoping Study is in the advanced stages with completion expected during early Q2 of 2022
Commenting on the significant Exploration Target* at the Sturec Gold Mine, Director Mr Gino D’Anna stated:
“We’ve always had the belief that Sturec possesses incredible prospectivity outside of the existing mineral resource area. The independent identification of a significant Exploration Target at prospects which have been either previously explored or mined are a key part of the Company’s strategy to work up a world class gold asset at Sturec. We look forward to expanding our drill campaign to include these potential growth areas.”
MetalsTech Limited (ASX: MTC) (MTC or the Company) is pleased to announce the results from its regional exploration assessment and review of historical exploration and mining data at the Company’s 100%-owned Sturec Gold Mine, located in central Slovakia (Sturec).
The comprehensive program has defined seven (7) new zones of potentially significant gold mineralisation, within close proximity to one another. While the targets are conceptual in nature, each of the prospects have been historically drilled and/or explored, demonstrating significant exploration upside. The targets have a cumulative size range of between 37.9Mt and 58.2Mt at an average grade of between 1.79g/t AuEq and 2.75g/t AuEq for a total of between 2.18M oz AuEq and 5.15M oz AuEq (Exploration Target*).
The Exploration Target* is entirely separate from the existing Sturec Mineral Resource, which is 38.5Mt @ 1.23 g/t Au and 8.8 g/t Ag (1.30g/t AuEq), containing 1.522Moz of gold and 10.93Moz of silver (1.611Moz of gold equivalent) using a 0.26g/t Au cut-off within an optimised open pit shell. A total of 93% of the Mineral Resource is in the Measured + Indicated categories. In addition, there is a further 148kt @ 3.55 g/t Au and 12.6 g/t Ag (3.64g/t AuEq1), containing 17koz of gold and 60koz of silver (18koz of gold equivalent) outside the optimised open pit shell on an underground mining basis. The JORC (2012) Mineral Resource includes a higher-grade subset of 6.25Mt @ 3.27 g/t Au and 19.4 g/t Ag containing 658Koz of gold and 3.89Moz of silver using a cut-off grade of 2 g/t Au which has been a key focus for the Company’s ongoing scoping study assessment.
The Exploration Target* is based on the current geological understanding of the geometry of the mineralised zones at these prospects. This understanding has been developed through exploration drilling completed to date, regional mapping and sampling, and historic mining activity at Sturec, Wolf, Vratislav and Katerina, combined with an understanding of the host geology and structures.
This Exploration Target* has utilised data from both historic drilling, completed predominantly at Sturec, Wolf, Vratislav and Katerina, and from drilling completed by MetalsTech since 2020. The geological data used to support the Exploration Target* estimate consists of 245 drill holes for a total of 57,089m.
The Exploration Target*, being conceptual in nature, takes no account of geological complexity, possible mining methods, or metallurgical recovery factors. The Exploration Target* was estimated in order to provide an assessment of the potential scale of exploration within the Sturec Gold Mine tenement.
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. It is covered by the Kremnica Mining Territory for 9.47 km2. Well paved roads and a network of old mining and forestry tracks service the project and there is an operating rail line to the town of Kremnica. High voltage power lines pass through the margins of the mining lease, and connection to the national grid is possible. A network of historic water storage impounds from the historic mining of the area would ensure adequate water supply.
Gold mining commenced at Sturec in the 8th century and historic production reportedly totals ~46,000kg (~1.5Moz) of gold and ~208,000kg (~6.7Moz) of silver. Production was mostly from underground mine workings but also some small open pits. Refer to ASX Announcement dated 20 November 2019 and titled “MetalsTech Signs Option to Acquire the Sturec Gold Mine”.
The Slovak Geological Survey carried out extensive exploration in the Sturec area from 1981 to 1987, including extensive adit and cross-cut development within the Sturec zone. The State-owned company, Rudne Bane, subsequently operated an open-pit mine at Sturec from 1987 to 1992 and produced 50,028t of ore averaging 1.54g/t Au. Further core and RC drilling was undertaken by Argosy Mining Corporation and Tournigan Gold Corporation (120 holes totalling 25,000m), before Ortac Resources acquiring the project in 2009.
Mineralisation and Exploration Potential
The Sturec deposit, occurs in the southern part of the central First Vein System. It is continuously mineralised for 1,600m along a north-south strike, is typically 100 to 150m wide, generally dips steeply to the east and extends to a known depth of at least 300m. The deposit is composed of massive to sheeted quartz veins and is classified as a low-sulphidation epithermal Ag-Au deposit and is open to extension both at depth and along strike to the north and the south.
In the northern part of the deposit, a northeast-striking quartz vein system that joins with the main north-south striking vein system (Schramen Vein). This vein system projects southwest away from the Schramen Vein where it outcrops approximately 100m to the west. It then bends to the south and strikes parallel to the Schramen Vein. This vein system dips 40° to 55° east, re-joining with the Schramen Vein at depth.
Zones of stockwork gold mineralisation occur between the two principal veins and appear to plunge to the south. This plunging zone contains some of the highest-grade mineralisation within the deposit and is still open towards the south.
Numerous targets have been identified in addition to the existing Mineral Resource, which has the potential to increase provide resource expansion opportunities. These include the Vratislav and Wolf targets, which are located 1km and 2km, respectively, north along the continuation of the Kremnica vein structure and a large area of strongly clay and silica altered rhyolite, referred to as South Ridge, located south of the deposit, which is considered to be prospective for several styles of epithermal gold mineralisation.
Volle Henne
Surface sampling at Volle Henne returned very anomalous gold grades. Limited exploration has been conducted at the Volle Henne target, therefore a relatively wide potential range of tonnage and grade is applied when calculating the Exploration Target* at this zone. As illustrated in the plan view, adit sampling at this zone indicates an important degree of mineralisation distributed over an area of approximately 200m by 200m, to a depth of about 100 to 200 metres. If a conceptual zone of significant mineralisation is constrained on average to a unit of thickness of 15 to 20 metres, a depth of 250 metres (using the Sturec Resource zone as a geological analogue) and a strike length of 800 metres, at a density of 2.4, then potential tonnage range for an Exploration Target* calculates to 7,200,000 to 9,600,000t. Grades are estimated to lie between 3.0 to 4.5 g/t AuEq, based on adit sampling.
Surface and adit sampling at the Volle Henne target is highly encouraging and suggest a possible parallel zone to the mineralisation observed at the primary Sturec Mine resource. A fence of drillholes along the trend is considered reasonable to test the Exploration Target* potential at Volle Henne.
Vratislav Prospect
The Vratislav Prospect is located approximately 150 metres to the north and along strike of the Updated 2021 Sturec Mineral Resource Estimate area. This area has been drilled by previous exploration companies including Argosy Mining Corporation in 1996-1997 (2 Diamond core holes) and Tournigan Gold Corporation in 2004 (4 Diamond core holes).
Three major north-south veins have been identified at the Vratislav Prospect, which are all splays off the Schramen Vein (major structure in the Sturec Mineral Resource). The Schramen Vein is the eastern-most structure and the Schindler Vein the western-most splay, dipping back to the east at 40° to 50° and intersecting the Schramen Vein at depth. A second major vein, the Teich Vein, splays off the Schindler Vein in the Vratislav area. The Teich Vein is steeply dipping similar to the Schramen Vein in the Sturec Mineral Resource. The veins are surrounded by low-grade stockwork mineralization. From analysis of the historic drill results, it has been determined that a high-grade zone appears to be associated with the intersection between the Schindler and Teich veins. Further exploration drilling needs to be completed to understand the geometry of this high-grade mineralisation zone and whether or not it extents along strike/plunge.
This prospect was historically mined underground. Exploration drill results indicate that significant intervals of mineralisation that could be potentially economic remain and so further exploration drilling and underground mapping needs to be completed to understand the extent of the remaining mineralisation.
Wolf Prospect
The Wolf Prospect is located directly north of the Vratislav Prospect and along strike of the main mineralised veins. It is also 1.1 kilometres to the north and along strike of the Updated 2021 Sturec Mineral Resource Estimate area.
This area was drilled by previous exploration companies including Argosy Mining Corporation in 1996-1997 (7 diamond core drill holes) and Tournigan Gold Corporation in 2004 (3 diamond core drill holes). At Wolf, mineralisation has been intersected over 300m along strike and extends to about 100m depth. The mineralogy in this area is similar to Sturec, although considerably more silver-rich. The Wolf Prospect also contains a much larger amount of rhyolite dykes, which often intrude along the major, N-S trending structures and are variably overprinted by gold-silver mineralisation, especially where they run along the major structures that laterally contain the quartz vein mineralisation. As is the case at the Vratislav Zone, of particular interest in this area is the same intersection between the Schindler and Teich veins that produced the best drill result at the Vratislav Zone, which is interpreted to be below the current level of drilling.
A second sequence of veins at Wolf strike east-west, bisecting the rhyolite dyke on the footwall of the Kirchberger Vein and projecting into andesite wallrock. Pits that exploited the veins in historic times become shallower to the west. Thin, sparse stockwork veins have also been observed within rhyolite.
This prospect was historically mined underground. Exploration drill results indicate that significant intervals of mineralisation that could be potentially economic remain and so further exploration drilling and underground mapping needs to be completed to understand the extent of the remaining mineralisation.
Preliminary models completed for the Vratislav and Wolf targets, north of the Sturec Resource, seek to establish a continuous extension of the mineralised domain at the Sturec Resource. A theoretical mineralised domain model completed based on historical drilling at the targets predicts a potential upper value of combined 14.5M tonnes between the Vratislav and Wolf targets. This roughly works out to a strike length of 1,600 metres, depth of 250 metres and thickness of 15 metres, assuming a density of 2.4. An independent assessment has examined this domain and as well as other reports and considers the theoretical mineralised domain of 14.5Mt to be the upper end of the potential range of an Exploration Target*, and, in the context of the available data, applies a multiplier of 0.7 of this predicted tonnage to establish a lower end of an Exploration Target* range at these two targets, giving a range of 10.15 to 14.5Mt. Grade has been calculated as between 1.5-2.5g/t AuEq. This is considered to be a reasonable assumption based on grades from existing drillholes at these zones and is presented as a reasonably broad range based on the current subsurface resolution as defined by existing drilling.
North Wolf
Limited exploration has been conducted at the North Wolf Target, therefore a wider range of tonnage and grade is applied to arrive at an Exploration Target* at this zone. The strike length the North Wolf Target measures roughly 50-75% that of Wolf/Vratislav based on mapping. The same grade ranges will be applied to this zone, based on the grades observed at the main resource and the predicted grade range at Wolf/Vratislav. In the absence of significant drilling data, potential width and depth are assumed to be similar to that of Wolf/Vratislav. As all other parameters aside from strike length are assumed to be roughly similar to Wolf/Vratislav, a multiplier 0.5 to 0.75 against 14,500,000t (the maximum of the tonnage range of Wolf/Vratislav) in this zone to reflect the variation in strike length. Therefore, the potential tonnage of an Exploration Target* at this zone is assumed to be between 7,250,000 and 10,875,000t.
Sturec Depth Extension
The current resource estimate at the Sturec Gold Mine was optimised by open pit and underground mining method, with a cut-off grade of 0.26 g/t Au. Mineralised material that lies outside of the optimised open pit shell has an applied cut-off grade of 2.0 g/t Au and was reported as having “reasonable prospects of eventual economic extraction”. The block model is limited to a maximum elevation of about 400m ASL. From surface, this is between approximately 250-350 metres depth, depending on surface topography.
The 2021 Mineral Resource Estimate states “mineralisation depth exceeds 1.2km in the northern part of the system”. Vein systems of this nature tend to continue to considerable depth, therefore additional mineralisation deeper than the established block model at the Sturec Gold Mine is considered to be a realistic possibility.
The current 2021 Mineral Resource Estimate establishes the current resource at the Sturec Resource to be 38.495Mt @ 1.30 g/t AuEq for a total of 1,611,000oz AuEq.
Based on a geological cross section through the Sturec Resource and the width of the vein system as it approaches the lower boundary of the existing block model, it appears clear that there is potential continuity to depth. Extension of the mineralised domain to an additional depth of 200-300 metres could expand its size by 20-30%.
Although the vein system does extend to depth, the current block model shows that grade does appear to decrease down-dip, therefore the grades will be constrained to roughly the average grade of the current total average grade of the Sturec resource. Further deep drilling will be required to confirm whether grades at depth are comparable to the overlying Sturec Resource.
Therefore, the Exploration Target* for a potential “Sturec Depth Extension” would range from 5,774,250 to 9,623,750t. Grade may range from 1.3 – 2.0 g/t AuEq, based on average grade of 1.3 g/t AuEq at the overlying Sturec Resource.
Katerina Prospect
The Katerina Prospect is located approximately 150 metres to the west but parallel to the Updated 2021 Sturec Mineral Resource Estimate area. This prospect was drilled by Argosy Mining Corporation in 1996-1997 (5 diamond core drill holes).
The Katarina Prospect has been observed to contain discrete, narrow (up to a few metres wide), quartz (carbonate) veins. The veins strike in a north-northeast direction and appear to be near vertical or dipping steeply to the west. Geological mapping suggests that the vein system splays and weakens to the north and converging into larger structures in the south. Some diffuse stockwork mineralisation has been also been observed.
This prospect was historically mined underground. Exploration drill results indicate that significant intervals of mineralisation that could be potentially economic remain and so further exploration drilling and underground mapping needs to be completed to understand the extent of the remaining mineralisation.
The strike length of the Exploration Target* at the Katerina Target is approximately 250-300 metres, based on local surface mapping, with potential width given a range of 15-25 metres. A depth of 250 metres is assumed based on the proximity to the Sturec Resource and the absence of any deep drilling to indicate otherwise. Based on these parameters and a density of 2.4, the potential Exploration Target* tonnage calculates to 2,250,000 to 4,500,000t. A conservative grade range of 1.5-2.5 g/t AuEq is applied to this zone, based on local sampling.
South Ridge Target
As stated in the 2021 Mineral Resource Estimate Report (refer to ASX announcement dated 21 June 2021), the exploration potential along strike/plunge to the south of the currently defined mineralisation zone is very promising.
Estimation of tonnage and grade for this Exploration Target* was based dominantly on drill intercepts and mineralized domain modeling at the Sturec Resource. There is a likelihood of average grades ranging from 1.3-2.0 g/t AuEq within this zone, similar to grades encountered at the Sturec Resource. Limited exploration has been conducted at the South Ridge Target, therefore a relatively wide range of tonnage and grade is applied here to arrive at an Exploration Target*. The length of this zone is estimated to be between 400-500 metres, with an average width of 20-30 metres, and a depth of 200 metres to reflect the dimensions of the mineralised zone in cross section -1230250N of the Sturec Resource block model. Using those parameters and a density of 2.4, the Exploration Target* tonnage range calculates to 3,840,000t to 7,200,000t. The prospectivity of this zone is also evidenced by the cross section through the southern part of the Sturec Mineral Resource area. Mineralisation is projected to be open towards the south along strike of the vein system.
Sturec High Grade Extension
An independent assessment of the exploration potential of the Sturec High Grade Extension estimates the potential Exploration Target* at this zone to measure approximately 200 metres in length, with an approximate width of 15-20 metres and depth of up to 200 metres, based on a projection of the dimensions of the northernmost cross section through the Sturec Resource block model, which supports the average grade to lie between 3.0-4.5g/t AuEq. Based on these parameters, using a density of 2.4, the potential tonnage range of an Exploration Target* calculates to 1,440,000 to 1,920,000t.
Future Exploration Work
The Company is currently awaiting a significant number of assay results from the recently completed diamond drilling from within drill chamber # 2, part of the Phase II underground diamond drilling program.
In addition, the Company has designed a diamond drilling program from surface which is designed to test each of the Exploration Target* areas noted above. Permits for the planned surface diamond drilling program are expected to be lodged shortly.
Underground diamond drilling is continuing from within drill chamber # 3, part of the Phase III diamond drilling campaign. The Company’s Scoping Study also remains on track for completion in early Q2 of 2022 and is in the advanced stages.
ENDS
For further information, contact:
Gino D’Anna
Director
M +61 400 408 878
Nathan Ryan
Investor Relations
M +61 420 582 887
nathan.ryan@nwrcommunications.com.au
Caution Regarding Forward-Looking Information
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 Person Statement
Mineral Resource Estimate
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.
Exploration Target Estimate
The information in this announcement that relates to Exploration Targets is based on information compiled by or under the supervision of Stewart A. Jackson (PhD, P Geo). Dr. Jackson is the principal of SAJ Associates and a member of the Association of Professional Geoscientists of Ontario. Dr. Jackson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity he is undertaking 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. Jackson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.