Nova Minerals Share Price Climbs on New Resource Estimate (ASX:NVA)
The Nova Minerals Ltd [ASX:NVA] share price has received a modest boost today thanks to its interim mineral resource estimate at its Estelle Gold Project in Alaska.
NVA shares have risen rapidly in the past few months.
Since the end of August, the NVA share price has climbed ~130%.
Although, the reason behind this rapid rise isn’t exactly clear, as it does not appear to correlate with trading updates.
At time of writing, NVA share are up 5% to trade at 10.5 cents per share.
Estelle adds nearly one million more ounces
NVA today released its interim mineral resource estimate from the Korbel site at the Estelle gold project.
When we last took a look at the NVA share price, the company had just increased its ownership in the Estelle Gold Camp.
And was looking to expand its 2.5Moz resource.
NVA said it has now grown the resource to a 3.3Moz inferred JORC mineral resource estimate.
The 800,000oz increase is underpinned by 7,200 metres of drilling to the end of June this year.
With up to 40,000 metres of drilling planned for the whole of 2020.
Today’s upgrade represents an increase in total tonnage of 61% to 290Mt at 0.4 grams of gold per tonne.
There are still results from 32 drill holes taken from the Korbel prospect to be released, according to NVA.
Which may add to a future resource upgrade.
Further drilling is also planned to target a new high-grade extension zone.
Highlights in this area include:
- 101m at 1.3 g/t incl. 82m at 1.5 g/t
- 30m at 2.4 g/t
- 3m at 7.7 g/t
Progress at Estelle marches on
NVA CEO Christopher Gerteisen said further resource updates would be released as many more drill results flow in.
‘We are very pleased with the results of this Interim Mineral Resource Estimate which represents a “snap-shot in time” and is based on very few of the additional drill results of the total planned drill program.
‘Drilling is ongoing into the foreseeable future to continue on defining further ounces while executing our path to production with urgency.’
Which might explain the modest jump in share price today.
From what Mr Gerteisen said, it seems as though NVA expect Estelle to grow a fair bit.
Meaning that the 800,000oz added today might be a small fry compared to what’s actually underground.
NVA say that the extent of the system at Estelle remains elusive and continues to stay ‘wide open’.
And with the gold price recovering nicely after its drop in late September, it’s a great time to be drilling and adding to an already massive resource. There’s plenty of gold action to be had back in Australia, too! If you haven’t already, make sure you check out our gold expert, Shae Russell’s latest report on Aussie gold stocks. She’s tipping Australia to become the new ‘gold epicentre’, which could have huge spikes for Aussie gold miners. Get your free copy here.
For The Daily Reckoning Australia