GBA Capital has highlighted Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF) in a 'What’s making waves' company snapshot titled, 'Tier-1 gold in Alaska at A$6/oz'.
Nova is focused on large-scale gold and critical metal projects in North America, with its flagship Estelle Gold Project hosting around 10 million ounces of gold, all on State of Alaska mining claims.
The project spans 513 square kilometres in the prolific Tintina Gold Belt, which has a gold endowment of 220 million ounces of gold, with Tier-1 gold deposits and mines including the 45-million-ounce Donlin Creek, the 11-million-ounce Fort Knox and 6.9-million-ounce Pogo.
Estelle is 150 kilometres northwest of Anchorage, with multiple gold resources and exploration prospects along its 35 kilometres of strike. It has a resource of 9.9 million ounces of gold.
Attractive valuation
The GBA snapshot highlighted that Nova was trading at a very inexpensive A$6 per ounce gold on an enterprise value (EV)/resource basis.
This compares to the average EV/resource (in A$/oz) of ASX-listed gold stocks — with market caps of less than A$500 million — of A$70 per resource ounce.
GBA says, on that basis, “it’s reasonable to say that at $6 per ounce, NVA is trading at a discount to its peers. This is likely due to conservatism among ASX investors about large-scale open pit projects outside Australia – an opportunity if NVA can further improve project economics in the PFS.”
GBA also outlined potential milestones for the company this year, including drilling to expand resources and increase measured and indicated category; testing of antimony potential; ongoing metallurgical and flow sheet work for a pre-feasibility study (PFS); regional exploration of priority targets (eg gold Train, Trumpet, Shoeshine; and antimony, Stibium, Styx); and a US listing.
Pre-feasibility study due 2025
A May 2023 scoping study proposed open pit mining to produce an average 132,000 ounces of gold per annum for more than 17 years with 363,000 ounces in year 1; pre-tax NPV5 of US$654 million at a US$1800/ounce gold price. The company is expected to release a pre-feasibility study (PFS) reflecting updated costs and gold price next year.
GBA recognises that there could be upside from process refinements (such as advanced ore sorting, heap leaching of lower grades) and metallurgical advances (producing antimony as a credit).