Scoping study by Nova Minerals shows Korbel Main in Alaska can support large bulk tonnage gold open pit

Alaska gold hunter Nova Minerals (ASX: NVA) says a scoping study on its plans for a “starter pit” at the Korbel Main deposit highlights the potential for that part of its project to support a large stand-alone, bulk tonnage open pit mining operation.

The company adds that Korbel Main has an ideal ore body geometry that allows mining at a very low strip ratio.

So far, the company has announced a gold resource of 9.6 million ounces within the Korbel and RPM deposits, the latter accounting for 1.5Moz of that total.

Both are part of Nova’s Estelle gold project which is located approximately 177km northwest of Anchorage, Alaska’s major city, which provides a large labour force and all essential services. Access is via snow road or by air, with the nearby airstrip being able to handle DC3 aircraft.

It is located on the long Tintina gold belt of Alaska.

Has 9.6Moz, aiming for 50Moz

The 9.6Moz figure, while substantial, is only part of Nova’s ambitions in Alaska, the chief executive officer Christopher Gerteisen having previously told Small Caps that “we aren’t going home until we uncover 50Moz”.

Korbel and RPM cover 27 prospects over a 450 sq km area.

Korbel has an indicated 286 million tonnes at 0.3g/t and an inferred 583Mt at 0.3g/t and, as explained previously, the gold in this region of Alaska is typically in bulk tonnage, low in grade but with high margins.

Payback is expected within three years with an all-in sustaining cost of US$879 per ounce (A$1,220/oz).

The study forecasts production of more than 200,000oz in first year of production at Korbel Main.

‘Only the start of things to come’

The estimated development has been put at US$424 million (A$589 million), which includes a 6Mt per year plant, site infrastructure and mining fleet.

Mr Gerteisen said the scoping study results exceeded, in many respects, the company’s expectations.

“Estelle has all the hallmarks of a world class gold trend with 9.6Moz in current resource inventory only the start of things to come.”