ASX Gold Stock Soars 41% Today on Achieving 'Significant Milestone - Kalkine Media

November 15, 2023 09:59 PM AEDT | By Team Kalkine Media
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ASX gold stocks are causing a stir on the Australian Securities Exchange (ASX), and one, in particular, is grabbing attention. Metalstech Ltd (ASX: MTC) is experiencing a remarkable surge, with its shares soaring by as much as 41% in a single trading session. The stock, valued at 17 cents at its peak during morning trade, has settled to a still impressive 12.5% gain at 13.5 cents at the time of this writing. 

This significant increase in share value is directly linked to the release of Metalstech's scoping study for the Sturec Gold Mine, a 100%-owned venture located in central Slovakia. Investors eagerly embraced the stock after the study revealed highly promising economics and technical viability, positioning the Sturec Gold Mine as a potential low-cost gold and silver concentrate producer. 

The scoping study underlines the mine's ability to sustain a base case scenario through an underground-only mining operation, projecting gold and silver concentrate production of approximately 1.134 million ounces over an initial mine life of 9 years. With a plant production capacity of 2.3 million tonnes per annum, the study estimates a life-of-mine operating cost of US$927 per ounce. This robust operating margin is based on a forecast long-term gold price of US$1,850 per ounce. 

The financial metrics paint an optimistic picture for the project, with a pre-tax net present value (8% discount rate) of US$506 million (A$791 million) and an internal rate of return (IRR) of 116%. Even with a conservative gold price assumption of US$1,550 per ounce, the project retains an after-tax net present value of US$239 million (A$376 million). Remarkably, these figures stand out against the company's current market capitalization, which hovers around $30 million. 

Gino D'Anna, the director of Metalstech, emphasized the significance of this achievement, labeling the completion of Sturec's updated Scoping Study as a "significant milestone" for the company. He expressed enthusiasm for the project's potential to revitalize one of Slovakia's historic mining operations, bringing opportunities for local communities in the region. 

The scoping study is regarded as a high-quality assessment, with 78% of the mining inventory based on Measured and Indicated Resources, and only 22% in the Inferred category. D'Anna highlighted the production target, which indicates that only 40% of the current JORC (2012) Mineral Resource has been mined, underscoring the substantial project and economic upside. 

As Metalstech looks to the future, the company plans to advance to a pre-feasibility study for the Sturec Gold Mine, building upon the positive outcomes of the scoping study. This latest development reinforces the potential of ASX gold stocks, with Metalstech emerging as a notable player in the thriving sector. 


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