Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF) is pleased to provide an update on the Thompson Brothers Lithium Project in Canada, through its majority-owned investment in Snow Lake Resources Ltd.
Snow Lake has a new board with what it calls “a well-balanced set of skills”, which has begun working in earnest to position the company on a path to execute on its development strategy at the Thompson Brothers Lithium Project.
Further growth
The strategy aims to create shareholder value by fast-tracking project development, expanding the resource and investing in further growth through exploration and M&A.
Snow Lake plans to commission a preliminary economic assessment (PEA), which considers the possibility of direct shipping ore (DSO). This process may involve selectively mining and/or ore sorting.
Beginning the development process through DSO will streamline the project, removing many of the permitting and capital spending hurdles while generating cash flow for the company.
The inclusion of DSO into the company's strategy offers additional assurance of supply to potential offtake partners. Importantly, the PEA will also investigate a complete flow sheet which will include a DMS / concentrator operation.
The company has increased its land holdings to 59,587 acres of prospective lithium ground and plans to conduct a field exploration campaign once the snow melts, with the objective of identifying additional lithium-bearing pegmatite swarms across the project.
Snow Lake then plans to kick off exploration drilling on any high-priority targets generated through the campaign, with the objective of increasing its project tonnage.
Plans are also afoot to evaluate M&A opportunities in the region and to grow the project portfolio via accretive acquisitions.
What’s next?
Next steps are to:
- recruit a high-calibre CEO;
- conduct infill and extension drilling at the Grass River Project;
- update a resource estimate for the Thompson Brothers Project and a maiden resource estimate for the Grass River Project;
- prepare for permitting through the advancement of environmental and social studies;
- conduct the PEA for a DSO product (a concept recently demonstrated by Core Lithium Ltd (ASX:CXO) with 1.4% lithium dioxide DSO sold out of Australia at US $951 per dry metric tonne); and
- commence discussions with potential offtake partners.
Nova CEO Christopher Gerteisen said: “As a 37% shareholder in Snow Lake Lithium, Nova is pleased with the conservative, systematic path, and the speed the new board is taking to quickly transition the company back to its core fundamentals of fast-tracking its lithium development project with the aim of generating early positive cash flows from an initial simple direct shipping ore (DSO) operation and further spodumene concentrate sales.
“This approach is well thought out and prudent for the benefit of shareholders, and Nova looks forward to reporting further progress as Snow Lake Lithium implements its new strategy.”