Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF) has secured the services of METS Engineering in Australia and Rough Stock Mining Services in Alaska to advance a strategic review into the company’s Estelle Gold Project in preparation for a pre-feasibility study (PFS).
Rough Stock Mining Services has also been engaged to complete a report to SK-1300 standards to progress the potential listing on a major US exchange.
NVA’s core objectives for the review are to improve the processing flow sheet, lower initial capital costs and establish a faster path to commercial production while minimising shareholder dilution and advancing toward a completed PFS.
Accelerating path to profitability
“As a non-executive independent director with experience in a variety of mining projects, I've had the privilege of unlocking value in mineral projects by identifying operational strategies and pathways that reliably lead projects to production and expansion,” Nova Minerals independent director and experienced mining engineer Rodrigo Pasqua said.
“Together with the board, we've engaged in comprehensive discussions on our strategic focus, which centres on moving the Estelle Gold Project toward production and accelerating our path to profitability.
“We understand the significance of the current elevated gold prices and their potential impact on Estelle's economics, where even slight increases in metal prices can have a substantial positive effect on this project, given the significant amount of additional material that would become economically viable."
The review will include an audit of the current processing flow sheet with the goal of lowering initial capital costs, increasing recoveries and maximising value for each tonne through the plant.
PFS-level work will also assess improvements including heap leach agglomeration to process material which is currently going to stockpiles or waste.
The review will include geotechnical studies coupled with blasting methods to improve pit slope design and an examination of all plant options, as well as an investigation into different power options.
Highly skilled individuals
“Unlocking value from mineral deposits is not always straightforward. It requires a cohesive team of highly skilled individuals capable of building robust mines that can withstand industry cycles,” Pasqua continued.
“Fortunately, Nova Minerals has assembled such a team, and I am pleased with the approach taken by the executive team in allocating resources to areas with significant upside potential.
“Once you delve into Estelle's geology, it becomes evident that this project is poised for successful production and a sustained long-term operation, and I am committed to leveraging my experience and industry network to continue to guide the company toward accelerated production at the Estelle Gold Project.”
Once the strategic review is complete, Nova will incorporate the results into the PFS which will seriously consider the initial development of a low capital expenditure (capex) plant to process the higher-value material for the first several years.
Once the PFS is complete, the board will then decide between multiple funding sources available with an eye to minimal dilution of value for shareholders.
The company says it is well-funded to pursue this review and associated test work, and updates will be made available as progress advances.