The Metalstech Ltd (ASX: MTC) share price is taking a hit today and is now sliding 4% into the red at 61 cents at the time of writing.
Metalstech shares are edging lower today despite the company providing a key update to its "bonanza gold hit" at its Sturec mine in Slovakia.
Here's what we know.
Image source: Getty Images
What did Metalstech announce?
The company provided an "upward revision" of its previously announced gold strike at the Sturec site.
In that release, Metalstech noted that it had intersected thick, mineralised zones for 622 grams-metres, including high-grade zones.
The company believes the find is so significant, it labelled it a new "bonanza" result at the time – interesting terminology for a publicly listed entity.
Alas, the results from drill hole UGA-18 have been updated after the company received screen assay results from visible gold samples obtained from its diamond drilling program.
The outcomes return "an improved 646g/t Au result", up from a previous estimate of 594g/t Au, whilst overlimits analysis for silver returned a 459g/t Ag result.
As such, the company advised it intersected a thick, continuous mineralised zone for an "extraordinary 673 grams-metres, including higher-grade zones" – up from 622 in the previous announcement.
Metalstech does leave a cautionary note regarding its specific drill results, that state the intersections are "not a true thickness, as the drill hole was drilled at an angle to the mineralised zones" due to underground drill sites.
Today's release builds on three prior announcements out of Metalstech's camp in the past few weeks, each centred on the mineralisation finds at Sturec.
Investors have rewarded the company on this backdrop, and the Metalstech share price has soared around 135% from 26 cents in early September.
Despite today's announcement, investors don't appear too impressed by the updates. The Metalstech share price has also come off its 52-week high of 70 cents on October 4 – the date of its last release. That's a 13% drop in just a few days.
This follows selling pressures from Wednesday, where the company announced an update on a key investment into its lithium spinout vehicle, Winsome Resources (ASX: WR1).
And the selling pressures continue today, with the gold exploration company's shares edging lower across the day, down from an intraday high of 67.5 cents in early trade.
Metalstech share price snapshot
Zooming out, the picture is far brighter, as the Metalstech share price has climbed 198% this year to date, and over 276% this past 12 months.
Metalstech shares have also rallied 118% this past month alone, and are up 8% in the past week.
These results outpace the S&P/ASX 200 index (ASX: XJO)'s climb of around 25% in the last year.
