MetalsTech (ASX:MTC) sitting on a goldmine of opportunities at Sturec

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Summary

  • MetalsTech deals with two of the hottest commodities currently - gold and lithium.
  • The Company operates the Sturec Gold Project in Slovakia with an updated mineral resource estimate of 1.5Moz of gold.
  • MetalsTech has entered into a deal with Lithium Royalty Corp regarding the former’s lithium assets in Canada, a premium mining jurisdiction.
  • The Company has received the first part of the deal to fast track the development works at the Sturec Gold Project.

For ages, gold has been traded as a precious metal. The yellow metal has maintained its ‘safe haven’ tag when it comes to investment. As witnessed on several occasions of economic/financial turmoil or uncertainty in stock markets, gold provides a unique opportunity for investment and also hedges the portfolio.  

Another metal, which is stealing the limelight and witnessing massive investment, is lithium. The global demand for electric vehicles and battery-based energy systems is heating up, which in turn, is creating a massive market for battery materials. And lithium is the main component of chargeable batteries.

Gold and lithium have become hot picks in the commodity sector. With high demand for these two metals, the popularity of players belonging to the related segments is also growing. 

With gold and lithium exposure in world-class geographies, dual-listed MetalsTech Limited (ASX:MTC | FRA:MT1) is one such player that has given an impressive return of 86% on the ASX in the last three months to its shareholders, as of 8 July 2021.

The diversified mineral explorer operates the wholly owned Sturec Gold Project in Slovakia and holds lithium assets in Quebec, Canada.   

Sturec gold project holds tremendous resource growth potential

Gold mining in Sturec dates back to the 8th century, and the historic gold production in the region is estimated at around 1.5Moz of gold and nearly 6.7Moz of silver. Most of the gold and silver produced has been from underground mine workings.

The Rozalia mine, producing gold concentrate from underground mining, sits nearly 30km south of Sturec. Moreover, several mining majors hold prolific assets targeting large porphyry and epithermal style deposits within the Western Tethys orogenic belt, which is one of the highly prospective regions.

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MetalsTech recently updated the mineral resource estimate for the Sturec project to 38.5Mt @ 1.23g/t Au containing 1.522 Moz of gold and 8.8g/t Ag containing 10.93Moz of silver. The cut-off grade of 0.26g/t Au is considered for an optimised open pit shell.

On an underground mining basis, the resource has been estimated to 148kt @ 3.55g/t Au for 17koz of gold and 12.6g/t Ag for 60koz of silver.

The Company also highlighted that the current mineral resource is nearly 93% in the measured and indicated categories.

The project remains open to the north and south along strike, as well as down-dip, indicating the potential of significant exploration upside.

The Company will commence another round of drilling campaigns in July 2021.

High-grade lithium asset portfolio in Canada

MetalsTech has lithium assets with significant potential in Canada’s premium mineral jurisdictions, where it operates the Cancet, Adina and Sirmac-Clapier projects. The Company has planned a spinout of its high-grade lithium assets into its wholly owned subsidiary Winsome Resources Limited.

The Company is also gearing up for the proposed listing of its lithium spinout vehicle on the ASX with the ticker code WR1.

MetalsTech receives AU$6.65 million as lithium royalty

In May this year, MetalsTech signed a binding agreement with North America-based Lithium Royalty Corp (LRC) as part of a deal valued at AU$18 million in relation to its lithium asset portfolio.

The deal will provide significant cash boost to the Company to accelerate the exploration and development activities at the Sturec Gold Project.

Recently, MetalsTech received AU$6.65 million from LRC in a restructured deal. In exchange, LRC has secured a 4% Gross Revenue Royalty over the Company’s non-core lithium assets. The Company retains gold rights over tenements.

Share price

The shares of MTC were trading at AU$0.260 on 9 July 2021 (AEST 11:38 AM). The Company has a market cap of AU$39.66 million.


 


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