Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF) has kicked-off a drilling program at the Estelle Gold Trend in Alaska that it considers “the most important and transformational for the company to date”, aiming to increase the size and confidence of both the Korbel and RPM deposits.
Nova intends to include the deposits in an upcoming phase 2 scoping study due later this year and a pre-feasibility study (PFS) slated for 2023.
The program will begin in the Korbel Valley with the initial goal of infill drilling an area within the proposed Korbel Mine pit zone, to convert additional inferred resources from the 8.1-million-ounce total gold resource into the higher indicated category.
Drill plan for Korbel Main.
Drill rigs will also test the maiden Cathedral target within the Korbel Valley, which has generated rock chip samples of up to 114 g/t with prospective geophysics indicating it may be the source of the Korbel Valley mineralised system.
Nova sees a near-term opportunity to increase resource tonnages at Estelle by delineating new mineralisation outside the current resource, namely from Korbel Main blocks A and B, Korbel blocks C and D, and the Isabelle and You Beauty prospects.
Finally, drill crews will assemble at site at RPM while pad building crews prepare the site to follow-up an intersection of 132 metres at 10.1 g/t from RPM-005.
“Another transformational year”
“This is another transformational year for Nova and we are excited to be recommencing drilling to further unlock the Estelle Gold Trend, with the view to adding additional tonnage to the already large resource, particularly in the higher indicated category from both the RPM and Korbel Main deposits, for inclusion in the very important upcoming Phase 2 Scoping Study,” CEO Christopher Gerteisen said.
“The Phase 1 Scoping Study announced in February, while showing that Korbel Main was a viable project in its own right, was constrained by the amount of Indicated resources available from a single ore source.
“However, as the sensitivity analysis demonstrated, a small increase in the resource grade will substantially increase both the NPV (net present value) and IRR (internal rate of return) of the project.
“We anticipate the inclusion of the high-grade RPM feed ore through the proposed Korbel Central Processing Plant, with minimal additional capital expenditure required as the current proposed plant has the flexibility to receive feed from ore sorter grade control and multiple ore sources, will result in significantly higher economic metrics being proved for the project in the Phase 2 Scoping Study due later this year.”
Field exploration work is expected to begin in the coming months to advance a pipeline of additional high-priority prospects around the Estelle Gold Trend, with a focus on the RPM surrounds and Muddy Creek.
Drill plan for RPM
Aiming to be tier-one global producer
“Like I have said in the past, not all that many opportunities come around to drill systems this large and of such high grade as we have at the Estelle Gold Trend, with an established 9.6-million-ounce total gold resource on a small area with both deposits remaining wide open and many other prospects yet to be explored as we continue to unlock the wider district,” Gerteisen continued.
“Our exploration efforts to date have produced results at an extremely low cost per discovered ounce and we intend to maintain this run rate with additional drill rigs and the on-site prep lab allowing economies of scale.
“With the team’s experience, commitment, vision and passion, we look forward to keeping the market updated as we advance the company through this truly exciting and transformational period as we continue to progress on our plans of unlocking a large gold trend containing multiple bulk tonnage gold deposits with the ultimate goal of becoming a world-class, tier-one, global gold producer.”
Nova is continuing the various mine and process optimisation, material haulage and environmental studies necessary for the phase 2 scoping study, the data from which will also be incorporated into the PFS.
The company expects a continuous flow of drill results from the ongoing Korbel and RPM programs to be reported throughout the year as assay results become available.