Nova Minerals Ltd Raises A$24 Million to Accelerate Drilling and Resource Programs at Estelle Gold Project

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Nova is now fully funded, with zero shareholder dilution, to continue its aggressive drilling and resource development study programs at the 9.6 million ounce Estelle Gold Project.

Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF) has now completed the sale of part of its stake in Snow Lake Resources Ltd (NASDAQ:LITM), with funds expected to be received overnight.

The sale included 3 million shares of Snow Lake Resources in a secured secondary offering, which represented approximately 31% of Nova’s stake, for total proceeds of US$18 million (~A$24,000,000 ).

Following the transaction, Nova continues to hold 6.6 million Snow Lake shares which, by agreement, are in escrow until March 21, 2023.

Nova is now fully funded, with zero shareholder dilution, to continue its aggressive drilling and resource development study programs on its 9.6 million ounce Estelle Gold project.

“An important step for the company”

Nova CEO Christopher Gerteisen said: “This funding represents another significant milestone for the company and exemplifies our disciplined capital management strategy of identifying and capturing strategic investments at lower cost, developing them at over time, then to monetize them to finance our path to production at Estelle. Gold Project, while minimizing dilution for Nova shareholders and keeping debt off our balance sheet.

“The price obtained for the sale of our Snow Lake shares, which was a complex transaction given Nova’s position as a major founding shareholder, was dictated by the regulatory approval timeline and market conditions, with the LIT ETF, NASDAQ, many lithium juniors, and other major lithium indicators all down sharply after experiencing a price-time correction.

“Nova is a gold mining company that is focused with passion, determination and determination on the development of our flagship Estelle Gold project.

“The opportunity cost of not being fully funded and committed to completing the full slate of aggressive 2022 work programs, which are expected to add tremendous value to society with so many resources at stake, was not an option that we considered.”

Pre-feasibility study in progress

Nova’s initial focus will be to increase the resource, both in size and confidence, at the Korbel Main deposit and the high-grade RPM North deposit, where the company met the spectacular hit in RPM-005 by 132 meters at 10.1 g/t gold, for inclusion in the highly anticipated Phase 2 scoping study to be delivered later this year.

Additionally, Nova intends to drill the RPM South Zone, which has a much larger surface footprint based on rock chip sampling and geological observations, as well as further explore the wider Korbel Valley. , with drilling this year also testing the Isabella Zone, Blocks C and D, and the encouraging Cathedral Zone, which contained rock chip samples of up to 114 g/t.

Resources derived from these additional areas will be included in the pre-feasibility study (PFS), also underway, which is expected to be completed in 2023.

In addition, planned exploration programs in the broader Estelle gold trend will also continue, with more targets identified in the RPM area, as well as the promising new Muddy Creek prospect.

Estelle gold trend – unlocked

With drill rigs and personnel mobilizing to accelerate exploration activities, and environmental and feasibility studies underway, the company is in a strong position to make rapid progress and generate shareholder value in 2022.

“Fully funded for an exciting future”

Gerteisen added: “With approximately A$25 million in cash, Nova is fully funded to complete all of its planned drilling and surveys in the Korbel and RPM areas up to the PFS, with the option of adding additional drill rigs. to explore some of the other 19. as well as exciting insights as the company continues to unlock the broader Estelle Gold trend.

“In particular, we look forward to getting the drills back on the RPM deposit shortly, weather permitting, where we hit the high-grade zone in our last hole to the west (RPM-005 132m @ 10.1g/ t) .

“This high-grade zone remains wide open, and we look forward to drilling its core, and further to the west, as soon as possible.

“With this drilling, the first objective in 2022 at RPM is to prove that the existing resource of 1.5 Moz at 2.0 g/t Au at the higher confidence category indicated for inclusion in the scoping study. phase 2 later in the year, to significantly improve the overall economics of the project.

“The RPM South zone also shows tremendous potential, and this zone will be another priority for the company to drill this year, as it seeks to significantly increase the resources at RPM.

“With Nova’s well-established financing pathways, which offer the least dilution to shareholders, we are now fully funded for an exciting future at the Estelle Gold Project.

“With two massive resources already defined and a pipeline of prospects defined for systematic exploration, the Estelle gold trend, in terms of scale and potential gold endowment, is shaping up to be a major gold trend in North America, as Nova is progressing on its path to gold production and its vision to become a leading world class gold producer.

Activities planned for 2022

  • RPM Phase 1 – Two 5,000 meter drill rigs at the RPM North deposit to prove that the resource has reached Indicated status;
  • RPM Phase 2 – Three drills drilling 15,000m at the RPM North deposit to extend strike up to 1km west of high-grade hole RPM-005;
  • RPM Phase 3 – 3,000 meters of drilling to test the highly prospective RPM South zone;
  • Korbel Main – Infill resource definition drilling in the saddle zone to prove that additional resources are indicated;
  • Korbel Valley – Begin drilling testing additional Korbel Valley targets, including Cathedral, Isabella and Blocks C and D;
  • Updates to the mineral resource estimate, with the aim of increasing both the confidence and the size of the resource;
  • The Phase 2 scoping study which will include the expanded and higher confidence RPM North Mineral Resources, with the anticipation of significantly improving the overall project economics;
  • Transportation studies examining four options;
  • Environmental studies and permits in progress;
  • Metallurgical studies and test work at the PFS level in progress;
  • Improve access to the site, including the “Korbel Highway” and expand the airstrip to accommodate larger aircraft; and
  • Expand men’s camp and winter facilities.
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