MetalsTech’s Sturec Project Faces Funding and Operational Challenges Ahead

Strategic Funding and Study Progress

MetalsTech Limited (ASX: MTC) has taken decisive steps to advance its flagship Sturec Gold Mine project in Slovakia by securing a $5 million working capital and Pre-Feasibility Study (PFS) facility. The company has already drawn down $1 million to initiate the PFS, with Mining One Pty Ltd appointed as the study manager. Mining One’s global expertise and reputation as one of the world’s top mining consulting firms underscore the seriousness of MetalsTech’s development ambitions.

The PFS is a critical milestone that will refine the project’s technical and economic parameters, building on the robust foundation laid by the recently updated Scoping Study. Completion of the PFS is expected to significantly de-risk the project and enhance shareholder value.

Robust Economics from Updated Scoping Study

The updated Scoping Study released in late 2024 paints a compelling picture for Sturec’s underground-only mining operation. With a pre-tax Net Present Value (NPV) at an 8% discount rate of US$768 million and an Internal Rate of Return (IRR) of 162%, the project promises strong financial returns. The study forecasts average annual EBITDA of US$125 million and a mine life of nine years, producing approximately 1.139 million ounces of gold equivalent (AuEq) from a 17.6 million tonne ore body at 2.12 g/t AuEq.

Operating costs are estimated at US$1,107 per ounce AuEq, positioning Sturec as a potentially low-cost producer. Capital expenditure is forecast at US$95.41 million, including process plant infrastructure sourced from Yantai Jinpeng Mining Machinery Co., Ltd in China. The study also highlights a high-quality resource base, with 78% of the mining inventory classified as Measured and Indicated Resources.

Operational and Community Engagement Updates

Mining activities officially commenced on 1 December 2024, marking a significant operational milestone. MetalsTech has submitted the necessary blasting permit applications to enable small-scale mining from the main Andrej Adit, ensuring the Mining Licence remains in good standing. Concurrently, the company has invested in preserving the historical mining infrastructure, including maintenance of the local mining museum and related buildings, fostering goodwill with the Kremnica community and stakeholders.

Exploration Upside: Antimony Potential

An extensive review of historical exploration data has revealed potential Antimony mineralisation within the footwall of the Schramen vein at Sturec. Although historically considered a low-value mineral and primarily used as a guide to gold and silver veins, Antimony’s presence opens new avenues for exploration and value enhancement. MetalsTech plans to further evaluate this mineralisation through a review of historical drill core and assay results, which could add a new dimension to the project’s resource base.

Financial Position and Outlook

Despite cash outflows related to exploration, development, and corporate costs, MetalsTech maintains access to significant funding through its facility with Minerva Investment Company Limited. With $38,000 in cash and $4 million in unused finance facilities at quarter-end, the company estimates it has approximately 4.4 quarters of funding available to support ongoing operations and the PFS completion.

The historically high gold and silver prices continue to attract strong market interest in Sturec, and MetalsTech is focused on leveraging this momentum to maximise shareholder value as the project advances.