A$21 million Capital Raising to Propel Estelle Gold
Melbourne, Nov 25, 2020 AEST (ABN Newswire) - Nova Minerals Limited (
ASX:NVA) (QM3:FRA) (NVAAF:OTCMKTS) is pleased to advise that the Company has received firm commitments for a placement to raise approximately A$21 million (before costs) ("Placement").
In conjunction with existing cash on hand, proceeds of the total Equity Raising will be used to grow resources and accelerate development of the Estelle Gold project.
NVA CEO, Mr. Christopher Gerteisen commented: "This raising will allow us to keep our momentum as we unlock the full value of what we believe to be a district scale asset with immense scope for further inventory growth.
Mineralisation at Korbel Main alone is identified over an area spanning +2,000m north-south and +600m east-west, with depths of +500m in areas tested with a 3.3Moz resource established to date on a small portion of this strike. We expect to add substantial tonnages within Korbel Main through the delivery of a Global Resource Estimate for Blocks A, B, C and D in 2021 whilst maintaining a low cost per discovery ounce. We anticipate that this cost will go down further with the establishment of a core preparation lab onsite.
In addition, have commenced ore sorting studies which will form part of the flow sheet and PEA, as well as a baseline environmental assessment which is to commence in the coming weeks.
Nova has never been better placed to achieve our goal of progressing Korbel Main to production whilst concurrently unlocking the Estelle gold district. By implementing our dual exploration and development strategy, we will seek to maximise our ability to create value for shareholders through both resource growth and project development."
Use of Funds and Funding
The Company currently has three diamond rigs (two of which are currently operational) and one RC rig on site at Korbel. The new funds will allow extension and definition drilling to continue with two additional drill crews to be added in 2021.
The Korbel Main system remains open along strike and at depth, with multiple rigs currently testing extensional targets and the South east extension feeder system. As the recent field works of the remainder of Korbel Main (Block A and Block B), Block B Southeast Extension, Blocks C and D, Cathedral, You Beauty, Isabella and Sweet Jenny show, considerable scope exists in the immediate boundaries of the Korbel prospect to further grow and upgrade the mineralisation footprint.
The opportunity at the Estelle Gold Project continues to be a significant focus for the Company. Korbel remains wide open and leaves significant room to grow the resource together with drill testing in the near term of equally large outlier targets at RPM, Shoeshine and T5. In early 2021, Nova will allocate more drilling resources to fully test these areas. Beyond the Korbel Main and Greater Korbel area, there are known targets throughout our 220km2 contiguous land position we have yet to test, along with large, highly prospective areas which have had no first pass target generation work.
Funding will be allocated to a range of additional areas, including:
o Ongoing extension and definition drilling to expand the current 3.3Moz Korbel Main deposit
o Continuous drilling to expand resource inventory at Korbel Main throughout 2021 across Korbel Main (Block A and Block B), Block B South-eastern extension, Blocks C and D, Cathedral, You Beauty, Isabella and Sweet Jenny
o Regional exploration of advanced targets
o Lower drilling costs through establishing core crushing infrastructure on site
o Initiate Environmental Assessment (EA) works
o Completion of Preliminary Economic Assessment (PEA) and Pre-Feasibility Study (PFS)
o General working capital and offer costs
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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