Nova Minerals has commenced a new drilling campaign at its flagship Estelle gold project in Alaska. The company aims to increase its value through the drill program, which is part of its pre-feasibility study (PFS) stage. Nova plans to drill approximately 15,000 meters using diamond rigs to increase the resource’s drill density and expand the global gold resource. The drilling will primarily focus on the RPM area, with the goal of further infilling and expanding the higher grade resources. Nova will also target the Train area to define a third gold resource. In addition to drilling, the company will conduct surface exploration mapping and sampling programs in the RPM and Train areas, as well as the Stoney prospect.
A recent research paper by Martin Place Securities (MPS) highlighted Nova Minerals’ significant trading discount compared to its regional and local peers. The report emphasized the market’s under-rating of Nova’s Estelle gold project, which was confirmed to be a robust project with strong financial returns and exploration potential in a recent scoping study. The research note also compared Nova’s market capitalization to other companies in Alaska’s Tintina Gold Belt, such as US GoldMining and Snowline Gold, which have significantly higher ratings.
The Estelle gold project, located in Alaska’s Tintina Gold Belt, is considered one of the world’s important undeveloped gold deposits. The region hosts substantial gold deposits, and some of the largest undeveloped resources in the world are located just outside the belt. The MPS research note suggested that Nova’s trade value is significantly discounted, considering the potential added value through the Estelle project in comparison to its Tintina peers.
Nova Minerals has already drilled over 90,000 meters at Estelle, resulting in a resource of 10 million ounces of gold at a cost of $11 per ounce. In mid-May, the company announced an aggressive 2023 field program to follow up on the Phase 2 Scoping Study. This study indicated the potential for a commercially robust mining operation at Estelle, with attractive financial and mining metrics.
The MPS research note concluded that Nova Minerals’ current market ratings were abysmally low and projected a major share price lift in the next 12 to 24 months. It forecasted a 12-month share price target of $1, which could potentially double in 24 months.
Nova Minerals is focused on advancing its Estelle gold project and aims to complete a full pre-feasibility study by the end of 2024. With its ongoing drilling campaign and promising scoping study results, Nova is poised to unlock the potential of the Estelle gold project and deliver significant value to its shareholders.
