Two weeks ago we entered a Trading Halt pending the release of diamond drill assay results. The Trading Halt and subsequent Trading Suspension wasn’t good to see as Management attempted to report the results. Since then, there has been significant selling pressure from shareholders in response to this. Management have responded by “rush processing” diamond drill holes UGA-04 and UGA-05 to try and reassure shareholders.
So where to from here?
The share price has closed this week at 16c, slightly higher than at the time the Trading Halt was announced two weeks ago. The share price has stood up even though the reaction from shareholders was one of disappointment.
Catalysts for share price growth are: - The pending assay results of diamond drill holes UGA-04 and UGA-05, which will help infer that the resource is potentially much larger than currently. - An update on MTC’s collaboration with CSIRO to move forward with a gold extraction processing method that doesn’t require the use of cyanide. Barrick is a good example of a company using an extraction method without cyanide at one of their operations so it is possible. The key for MTC is to grow the current resource to a size that justifies the investment in such technology, so the story at Sturec is still very much in its infancy for MTC at this stage.
MTC Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
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