A recent options exercise has bumped Nova Minerals’ (ASX: NVA) cash balance up to $15 million – ensuring the company is fully funded to fast track exploration at the Estelle gold project and deliver its strategic goals for 2020 and beyond.
According to Nova, almost 480 million options were due to expire on 31 August, but were all exercised at $0.0325.
Nova will use its healthy cash balance to expand the current 2.5 million ounce resource at Korbel – focusing on Block A and Block B.
Additionally, a preliminary economic assessment will be undertaken on the blocks and expanded Korbel resource area.
Drilling will also focus on expanding the resource beyond the two blocks.
Nova chief executive officer Christopher Gerteisen said the company had multiple positive developments underway as well as boosting its balance sheet.
“We are fully funded to complete our preliminary economic assessment studies and phase two metallurgical test work has begun.”
“Drilling is ongoing to continue defining further ounces within Korbel.”
Estelle gold project
Estelle is located 177km north-west of Alaska’s major city Anchorage. The project’s Block B has a resource of 181.29 million tonnes at 0.43 grams per tonne gold for 2.5Moz.
Recent grab samples at the Cathedral target at the project have returned gold grading up to 114g/t.
Five other samples assayed above 10g/t and were 98.3g/t, 37.1g/t, 24.5g/t, 19.6g/t and 11.05g/t.
Meanwhile, drilling at the Korbel prospect has uncovered further broad intervals with mineralisation remaining open at depth and along strike.
The latest continuation of mineralisation has been confirmed by eight diamond drill holes.
One hole returned 429m at 0.6g/t gold from 3m.
Within this hole were higher-grade intervals of 101m at 1.3g/t gold, including 82m at 1.5g/t; 30m at 2.4g/t, 3m at 7.7g/t, 6m at 4.7g/t and 3m at 8.2g/t.
An updated resource for Korbel is planned for release in December.
Nova’s plan at the project is to develop a bulk tonnage, high-margin gold operation.