The Metalstech Ltd (ASX: MTC) share price is exploding today on the back of a gold discovery.
The company's shares are currently swapping hands at 30 cents, a 20% gain. This comes after an intraday high of 35 cents a share, a 40% jump on yesterday's closing price.
The company's gains contrast with the S&P/ASX 200 Resources Index (ASX: XJR) today. It's currently down 0.84%.
So what is causing this ASX gold explorer's share price to surge today?
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Drilling intersects gold
Metalstech provided an update on a "bonanza gold intersection" from drilling at the company's Sturec Gold Mine in Slovakia.
Drilling at hole UGA-30 intersected with a thick mineralised zone of 173.2 metres (m) at 3.27 grams of gold per tonne (g/t) and 11.8 g/t of silver from 0m. This included 103m at 5.06 g/t gold and 13.4 g/t silver from 57m.
Meanwhile, drilling at hole UGA-25 intersected with a thick mineralised zone of 53m at 0.86 g/t of gold and 10 g/t of silver from 95m.
Commenting on the news, Metalstech director Gino D'Anna said:
The ore body at Sturec continues to deliver impress zones of gold mineralisation.
Our drilling has grown the confidence of the existing Sturec Mineral Resource and demonstrated that the mineralisation extends further to the south along strike of the existing resource and remains open down dip/plunge.
The company has completed drilling 12 diamond drill holes from the second drill chamber and eight from the third drill chamber. A nine drill hole within his third chamber is currently in progress.
Share price snapshot
The Metalstech share price has surged more than 210% in the past year while it's gained 3.45% in the year to date.
For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has gained just over 4% during the past year.
Metalstech has a market capitalisation of about $50 million based on the current share price.
