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Nova Minerals - ASX-listed Gold Company provides exposure to the first fully integrated renewable energy-powered electric mine in the world

Highlights

  • Nova Mineral wholly owns and operates Estelle Gold Project in Alaska.
  • Nova maintains a diverse asset portfolio in the form of strategic investments to leverage from other booming sectors.
  • Snow Lake, an investee of Nova, is engaged in the exploration and development of a high-grade lithium project in Manitoba, Canada. Direct access to the US Auto Alley
  • Snow Lake is in the advanced stage to soon float an IPO in the U.S. market to raise up to US$23 million alongside peers Albemarle Corporation (NASDAQ: ALB), Livent Corporation (NASDAQ: LTHM), Lithium Americas Corp.(NASDAQ: LAC), Piedmont Lithium Inc. (NASDAQ: PLL) and Tesla (NASDAQ: TSLA)
  • The lithium project holds significant resource potential as the current resource of 11.05 Mt is from 5% of the tenure area only.

Since the onset of the COVID-19 pandemic, gold has seen a lot of investor interest. Yellow metal, often termed a ‘safe haven’ asset, historically has performed well during the time of duress. Gold is among a very few assets which investors can buy both in physical and electronic form. One can buy physical gold in the form of bars, coins and jewellery, and at the same time, buy gold in the electronic form through gold ETFs or participate indirectly via gold mining stocks.

Related read: June quarter sees Nova Minerals (ASX:NVA) make serious strides at Estelle gold project

A boom in the EV segment has significantly increased the demand for lithium for the manufacturing of lithium-ion batteries. The companies engaged in lithium mining have delivered excellent returns to their shareholders in the last one year. The demand for battery metal is expected to remain strong.

ASX-listed Nova Minerals (ASX:NVA| OTCQB:NVAAF| FSE:QM3)  is an innovative mineral explorer and developer. The Company has exposure to both the safe-haven metal, gold, and battery metal, lithium.

The Company operates Estelle Gold Project in Alaska. The flagship project, fully owned by Nova, currently has a Mineral Resource of 4.7Moz of gold at Korbel Main, one of 15 known targets, Korbel Main offers 3.3km on continuous mineralization which remains open along strike with the Company targeting to unlock the district with major resource updates by the year-end on Korbel Main and RPM.

Korbel Main offers 3.3km on continuous mineralization which remains open at Korbel on Estelle Project (Image source: Company update, 9 August  2021)

Drilling rig on first hole location on RPM prospect on Estelle Project (Image source: Company update, 16 June 2021)

Related read: Nova Minerals eyeing mineral resource outside the Korbel Main 4.7Moz at the RPM prospect with drilling kick-started

To diversify its asset portfolio and spread risk, Nova has made strategic investments in other companies to gain exposure to the assets of diversified sectors. One such investee company is Snow Lake Resources.

Snow Lake operates Thompson Brother Lithium Project in Canada. The Company has applied to the Securities and Exchange Commission (SEC) for listing and floating an initial public offering (IPO) to raise up to $23 million on NASDAQ alongside peers Albemarle Corporation (NASDAQ: ALB), Livent Corporation (NASDAQ: LTHM), Lithium Americas Corp.(NASDAQ: LAC), Piedmont Lithium Inc. (NASDAQ: PLL) and Tesla (NASDAQ: TSLA)

Nova holds 74% interest in Snow Lake Resources

Snow Lake to power its mine with renewable energy

Snow Lake is working on mine design to make it the first fully integrated renewable energy-powered electric mine in the world. The Company is committed to providing battery-grade lithium to the EV sector with zero emission. The lithium produced by the Company would be traceable and conflict-free and intends to become the first lithium producer to achieve the Certified B Corporation status.

Certified B Corporation means a business that has attained a balance between purpose and profit.

Related read: Nova Minerals’ (ASX:NVA) investee Snow Lake inches closer to IPO listing in the U.S.

Current Mineral Resource is from 5% of the tenement area

During the June 2021 quarter, Snow Lake announced the updated Mineral Resource Estimate (MRE) of the project. The Company reported Indicated Resource of 9.08 [email protected]% of Li2O and Inferred Resource of 1.97 [email protected]% of Li2O. The MRE holds good for a cut-off grade of 0.3% Li2O.

The current MRE is from 5% of the tenement area and the Company has deployed a relatively modest exploration budget on the project. This opens an avenue for a major resource upgrade when the rest of the area is brought under exploration.

Location is working in favour of the Company

Copyright © 2021 Kalkine Media, Data source: Company update, 9 August 2021

Related read: Nova Minerals’ (ASX:NVA) shares tick up as its subsidiary Snow Lake upgrades MRE for lithium project

Next steps on Lithium Project

  • Depth metallurgy analysis, resource definition, ore sorting and optimisation studies to be conducted during the third quarter of 2021.
  • The drilling program for the extension of the resource during Q3 or Q4 of 2021.
  • A magnetic drone survey is also planned on the tenement.

Shares of Nova Minerals were trading at AU$0.11 (as at 4:10PM AEST) with a market cap of AU$193 million as of 20 August 2021.

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