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Resource boost at Estelle lights up Nova Minerals’ December quarter

Image Source: NVA update, 21 January 2022

Highlights

  • Nova Minerals’ estimated gold resource grew to 9.6Moz, a 54.9% rise compared to previous quarter.
  • Delivering on its promise, Nova has jacked up the resource at its Korbel Main deposit from 4.7Moz to 8.1Moz during the December quarter.
  • The Company delineated 1.5Moz of a maiden resource on the RPM deposit.
  • Nova’s investee Snow Lake hit a major milestone after it was successfully listed on NASDAQ.
  • At the end of 31 December 2021, Nova reported a strong cash balance of AU$41,263,335

Gold explorer and developer Nova Minerals Limited (ASX:NVA|OTC: NVAAF|FSE: QM3) reported its December 2021 quarterly activities report today. Thanks to its exploration successes and other key milestones, it was an upbeat quarter for Nova. First it was the RPM deposit, whose maiden gold resource was delineated at 1.5Moz, followed by a resource update on the Korbel Main deposit.

Related read: Latest results shore up Nova Minerals’ confidence in RPM deposit; shares up 5%

Location of 17 identified gold prospects on the Estelle Project (Image source: Company update, 21 January 2021)

The Korbel Main and RPM deposits are two of the 17 major prospects at the 450km2 Estelle Gold Project in Alaska’s Tintina Gold Province. Korbel Main had an estimated resource potential of 4.7Moz at the beginning of the year 2021. This was also the mineral resource of the entire Estelle Project during the period. Nova launched an extensive drilling operation over Korbel Main and RPM in 2021 and started unlocking the values hidden under the icy Alaskan landscapes.

Korbel’s mineral resource grew from 4.7Moz to 8.1Moz, while RPM’s maiden mineral resource amounted to 23Mt @ 2.0g/t Au for 1.5Moz. Nova has branded Korbel Main and RPM as ‘company making’ deposits, on back of the positive developments.

Nova is on a strong footing and =the Company’s management believes that this is just the beginning of what can become one of the largest gold trends in the North -American region.

Related read: Nova Minerals appoints Colin Belshaw as head of new in-house technical advisory panel

Here are some key numbers:

Data source: NVA update, 21 January 2022

Nova is carrying out infill and extensional drilling at Korbel after the maiden 3.0Moz of Indicated Resource.

According to the Company, Korbel is one of the largest and fastest-growing resources in the world. It represents a small area of the extensive local mineralised system on the Estelle Project area. If Nova is able to replicate the Korbel success story on 16 other identified gold prospects on the Estelle Project, a major upside in resource potential could be witnessed.

Nova reports that assay work on over 8,000m of drilling is still pending at Korbel. Also, the Company is in the process of mobilising multiple diamond drilling rigs on RPM for its planned resource update program of 2022.

Related read: ‘Just getting started’: Nova shares leap on massive resource boost at Estelle ‘The Carlin of the North’

Strategic investments

Nova has strategic investments in a lithium project in Canada and in a US-based innovative aircraft manufacturing company. The diversified investment portfolio of the Company provides hedge to Nova’s investors to protect against massive fluctuations in the gold market.

Nova holds a 57.52% interest in lithium explorer Snow Lake Resources (NASDAQ:LITM). Snow Lake operates the Thompson Brothers Lithium Project in Manitoba, Canada. Snow Lake raised US$24 million before costs in its IPO via the issue of 3,200,000 common shares at US$7.5.

Snow Lake was valued at US$70 million upon listing.

Related read: Nova Minerals (ASX:NVA) hits jackpot at Estelle; unlocks 1.5Moz maiden resource at RPM

Nova also owns a 9.9% stake in Rotor X Aircraft Manufacturing. It is a cash- generating US-based aviation company currently engaged in the development of the world’s most affordable electric aircraft and heavy-lift drone technology.

Rotor X sells kits and parts for the Phoenix A600 Turbo helicopter. It is twin-seater high quality, and advanced helicopter with an effective range of 170 miles.

Rotor X is developing the electric version of Phoenix A600.

Financial and cash position

At the end of 31 December 2021, Nova reported a consolidated cash balance of AU$41,263,335. The Company estimates to incur a total exploration expenditure of AU$5.5million for the next half-year, subject to planned exploration and design.

Related read: With discovery of gold on RPM, Nova (ASX:NVA) ends September quarter on high note

NVA traded at AU$1.070 at the ASX with a market cap of AU$201.82 million, as on 21 January 2022


 


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