Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF) has unveiled its pioneer scoping study for the Korbel Main deposit, a key target within the company's flagship Estelle Gold Trend in Alaska’s prolific Tintina Gold Belt.
Ultimately, the study highlights the potential for Korbel Main to support a large, standalone, bulk tonnage open-pit mining operation, with an ideal ore body geometry that allows mining at a very low strip ratio.
However, the sensitivity analysis below demonstrates the potential that the addition of the high-grade RPM mill feed could add to the project, with each 10% increase in grade alone potentially adding a further US$200 million to the project’s net present value (NPV).
The 9.6-million-ounce gold resource at Estelle is hosted within the Korbel and RPM deposits, representing two of 21 prospects over a 450-square-metre claim area which is quickly developing into a prospective major gold trend.
Looking ahead, Nova plans to consider some immediate upside opportunities in a pre-feasibility study (PFS) for Korbel Main, which is already in the works.
Nova’s flagship Estelle Gold Trend is in Alaska’s prolific Tintina Gold Belt.
Study “exceeded our expectations”
Speaking to the scoping study findings, Nova CEO Christopher Gerteisen said: “Korbel Main is a key component to the rapid development of the Estelle Gold Trend and expected to contribute a significant portion of future gold production.
“Nova [is positioning] itself to supply a market with a strong appetite for gold, which continues to gain momentum amid high inflation globally, government deficits and central bank stimulus programs.
“Bottom line, gold is money, always has been, always will be, and Nova is in the business to produce gold, lots of it.
“Completion of the starter scoping study was an excellent achievement for the company and exceeded our expectations in many regards.
“This now provides a solid foundation on which to build as we transition to the project development phase and move rapidly to a PFS, which will capture the upside from further significant resource growth expected at both the Korbel and RPM Projects as we ramp up our 2022 resource drilling programs.”
Study highlights
Nova’s starter scoping study for the Korbel Main deposit covers a 15-year evaluation timeline and estimates a rapid payback period of three years.
In that three-year timeframe, a standalone gold operation is expected to attract an all-in sustaining cost (AISC) of US$879 an ounce, with more than 200,000 gold ounces forecast for production in the first year.
A gold hub at Korbel Main is predicted to generate 1.956 million gold ounces over its lifetime, with an 88% gold recovery rate estimated over the 15-year evaluation period, if Nova uses a conventional truck and shovel mining method and mill operation.
The scoping study outlines a US$381 million pre-tax net present value (NPV) at a 5% discount rate and a 20.4% pre-tax internal rate of return, based on a US$1,750 gold price.
The project is expected to attract US$990 in average cash costs per gold ounce and an AISC of US$1,120 an ounce over the evaluation period.
All up, a 6-million-tonne-per-annum processing plant and related site infrastructure is expected to cost US$424 million to get off the ground, including the US$57 million earmarked for mining fleet equipment and contingencies.
What’s more, the production rate and mine life has the potential to grow significantly as drill programs work to increase and prove up additional resources.
More information on Korbel Main’s key financial and production metrics from the scoping study are outlined below:
What’s next?
Nova hopes to consider immediate upside opportunities in a PFS, which is already in development.
Some of the key initiatives include:
- Increasing the size and confidence of resources at the RPM Gold Project, which currently hosts a maiden 1.5-million-ounce inferred resource. Geophysics and surface sampling has already identified several promising targets to drill test in 2022, with multiple diamond drill rigs set to mobilise in the coming months;
- Material handling studies are underway, investigating the low-cost transportation of high-grade RPM ore to a Korbel central processing facility;
- Continuing step-out and infill resource drilling across the wider Korbel Gold Project Area; and
- Ongoing exploration across the entire Estelle Gold Trend.
“Hallmarks of a world-class gold trend”
Gerteisen concluded: “This year, our drill programs and test work are aimed at rapidly converting the current 6.6 million ounces of inferred resources at both deposits into higher confidence measured and indicated resources, as well as advancing the high-grade RPM deposit to be included in the next stage PFS.
“We believe the results of the scoping study are a great starting point that demonstrates the technical and economic strengths which come from having a large, bulk tonnage project in a tier-one location.
“It’s all upside from here … additional key areas and opportunities have already been identified that have the potential to further improve the project’s economics.
“Estelle has all the hallmarks of a world-class gold trend, with 9.6 million ounces in current resource inventory only the start of things to come and multiple exciting targets outside of the Korbel and RPM projects, which offer huge potential to continue growing the overall resource inventory across the entire trend.
“We are confident that the combination of economic and technical studies, as well as significant resource growth, will drive further increases in shareholder value as we continue to unlock the Estelle Gold Trend and advance the PFS on our path towards production.”