Moves to 85% Ownership of the Estelle Gold Camp JV
Melbourne, May 12, 2020 AEST (ABN Newswire) - The Directors of Nova Minerals Limited (
ASX:NVA) (QM3:FRA) (NVAAF:OTCMKTS) are pleased to confirm that Nova now has a 85% interest in the Estelle Gold Camp through surpassing ongoing expenditure requirements as per joint venture agreement announced on 20 November 2017.
Project Highlights:
- Nova Earns 85% interest in the Estelle Gold Camp through ongoing expenditure (ASX 20 November 2017)
- Agreement now significantly escalates Nova's position to continue fast-track development
- Established 2.5Moz inferred gold resource at Korbel Blocks A and B (one of fifteen known occurrences) (ASX 11 September 2019)
- Drilling on track, focused on Block B (Starter Pit) with the goal of expanding and upgrading the Resource to Measured & Indicated status to expedite project feasibility studies.
- Exceptional gold leach recoveries averaging 76% at the Korbel Deposit (ASX 30 December, 2019)
- Additional resource development drilling will also be carried and continue to advance the pipeline of projects across the district.
NVA Managing Director, Mr. Avi Kimelman said: "Completing the move to 85% in a quick time considering the resource achieved demonstrates Nova's intent, ambition, strategy and its absolute confidence to fully 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. 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.
Nova's greatest accomplishment in 2019 on such small budgets was proving up 2.5Moz of gold in the Inferred Category in a very short period of time and demonstrating exceptional gold leach recoveries averaging 76% at the Korbel Gold Deposit (one of 15 known prospects). We look forward to amplifying our exploration and project development efforts in 2020 and are committed to keeping our shareholders constantly updated on our progress.
At the end of quarter we had circa $3.9m AUD and have completed our fully owned camp. This includes a commercial kitchen, laundry and washing facilities, sleeping quarters and social area. 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. 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 AUD$13 million. The size and scope of the project we are trying to achieve is self explanatory. We believe the size and potential of the project will become apparent upon the completion of the resource upgrade program, which the board believes will be a game changer for the Company and will maximise shareholder return. A significant exercise of the existing NVAO options would achieve this without any further dilution that has not already been factored in to the fully-diluted capital structure. It is because of this that I call on all our loyal option holders to do their part and assist the Company by exercising their NVAO options as soon as possible to allow us to fast track with our second rig without the need for other funding or bridging facilities.
We take the opportunity to thank those that have exercised their NVAO options and to those that have indicated that they intend to exercise.
Should any option holder require the exercise form please email the company secretary at info@novaminerals.com.au
Furthermore, we have a clear objective across the Korbel project alone to push Block B "Starter Pit" towards a feasibility study in 2021 (ASX announcement: 02 September 2019 and 9 December, 2019) on the path to production."
About Nova Minerals Limited
Nova Minerals Limited (ASX:NVA) (FRA:QM3) is a Gold, Antimony and Critical Minerals exploration and development company focused on advancing the Estelle Project, comprised of 514 km2 of State of Alaska mining claims, which contains multiple mining complexes across a 35 km long mineralized corridor of over 20 advanced Gold and Antimony prospects, including two already defined multi-million ounce resources, and several drill ready Antimony prospects with massive outcropping stibnite vein systems observed at surface. The 85% owned project is located 150 km northwest of Anchorage, Alaska, USA, in the prolific Tintina Gold Belt, a province which hosts a >220 million ounce (Moz) documented gold endowment and some of the world's largest gold mines and discoveries including, Barrick's Donlin Creek Gold Project and Kinross Gold Corporation's Fort Knox Gold Mine. The belt also hosts significant Antimony deposits and was a historical North American Antimony producer.
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