Metalstech (MTC.AX) has announced its exploration activities have restarted on its flagship Sturec gold project in Slovakia. In the initial phase, 8 holes will be drilled as part of a Phase II underground drill campaign and those holes will be drilled within the Andrej Adit from Drill Chamber 2? Which is about 70 meters further south from Drill Chamber 1. This should help the company to further extend the mineralization along strike and at depth towards the south and that could help to further increase the existing resource as the upcoming drill program will fill in some gaps, as you can see in the image above.
While the initial 8 holes of the Phase II drill program have already been designed, Metalstech has budgeted for an additional 8 holes but the location of those holes will only be determined after the company receives the assay results of the first 8 holes. Meanwhile, Metalstech continues to guide for an updated scoping study to be completed in the fourth quarter of this year, so the company clearly isn’t wasting any time to unlock shareholder value at Sturec.
Within the next few days, Metalstech will also complete the spin out of Winsome Resources (WR1.AX) which will be the vehicle for the lithium assets. The distribution date will likely be in early September and for every 3,5 shares of Metalstech owned, a shareholder will receive 1 new share of Winsome Resources with a deemed value of A$0.20. This basically means that someone who owns 20,000 shares of Metalstech at a current value of A$4,900 will receive just over 5,700 shares of Winsome Resources with a total value of just over A$1,100. Of course, it remains unknown at what share price Winsome’s first trade will take place. Lithium has been hot since the plans to spin the lithium assets out and although there may be some selling pressure from Metalstech shareholders that are only interested in gold exposure, there may be some investors out there looking to increase their exposure to lithium.
Disclosure: The author has no position in Metalstech but may go long ahead of the spinoff date. Metalstech is a sponsor of the website. Please read our disclaimer.
