- Nova Minerals (NVA) has claimed an 85 per cent interest in the Estelle Gold Camp after it surpassed ongoing expenditure requirements for its joint venture agreement
- It means the agreement now significantly escalates Nova’s position to continue fast-track development
- The company is now hoping to expand and upgrade the mineral resource estimate (MRE) to measured and indicated status to expedite feasibility studies
- It comes off the back of Nova establishing a 2.5 million ounce inferred gold resource, as well as gold leach recoveries averaging 76 per cent at Korbel Blocks A and B, which were announced last year
- Nova’s Managing Director Avi Kimelman said the company is fully committed to moving the Korbel prospect to development stage throughout the course of this year, but will need more funds to do so
- Nova Minerals’ share price is up 4.3 per cent today, with shares selling for 4.8 cents each
Mining outfit Nova Minerals (NVA) has confirmed it now has an 85 per cent interest in the Estelle Gold Camp after it surpassed expenditure requirements as per its joint venture agreement.
The announcement means Nova can continue to fast-track the development of the Korbel project in the North American state of Alaska, which the company hopes to move to the development stage this year.
Nova hopes to expand and upgrade the mineral resource estimate (MRE) to measured and indicated status to expedite feasibility studies.
It comes off the back of the company establishing a 2.5 million ounce (Moz) inferred gold resource, as well as gold leach recoveries averaging 76 per cent at Korbel Blocks A and B, announced last year.
Nova’s Managing Director Avi Kimelman said the move demonstrated the company’s intent and ambition to explore and ultimately develop the Estelle Gold Camp.
“We are committed to significantly increasing the current 2.5Moz resource and move the Korbel prospect to development stage during the course of 2020, and note that the resource achieved remains open in all directions,” Avi said.
“The Company has confidence in its prioritised systematic exploration strategy and the team is committed and on track to solidify the Estelle Project as the next emerging major gold camp.
“We look forward to updating the market on operations and results in the coming weeks,” He continued.
Nova recently completed its fully-owned camp at the site, which includes a commercial kitchen, laundry facilities, sleeping quarters and a social area.
Following the completion of the camp, the company said it had $3.9 million in the bank at the end of the previous quarter.
Mr Kimelman said the company is going to have to raise more money in order to utilise both diamond rigs and their reverse circulation rig.
“It is no secret that if we are to utilise both diamond rigs and our RC rig to complete the targeted 20,000-metre plus program, the current cash position is insufficient,” he said.
“We have had many proposed mandates and bridging financing facilities presented to us over the past weeks, of which a number are quite attractive.
“However, we note and are conscious of the potential for the NVAO options to be converted and if all were to convert it would yield the company in excess of $13 million.”
Nova Minerals’ share price is up 4.3 per cent today, with shares selling for 4.8 cents each at 1:15 pm AEST.