From MPS securities
10 April 2024
9.9 moz gold resource in Alaska
Enterprise value of a ridiculous A$0.00/oz.
Much more coming
Listing on NASDAQ to improve market valuation
Exploration indicating considerable potential
Low grade ore but high operating margins
Korbel is main deposit
RPM high grade growing resource
Excellent prospects at
- Train
- Trumpet
- Shoeshine
- Muddy Creek
Very cheap against its peers.
The market has a love/hate relationship with Nova Minerals.
Everyone knows its potential for additional resources and everyone knows the grades are relatively low.
The stock surges when it's in favour and drops away when interest wanes.
The sentiment can come and go but it needs to be recognised that 10 million ounces is 10 million ounces in a bull market.
The rock types at Estelle are essentially granites and the mineralized veins are geologically and optically quite different so they would be ideal materials for ore sorting.
Low grade gold mines typical all the Tintina Belt and low cost near surface open cut mining and treatment is the norm.
At US$2400/oz this is >US$77/g and most bulk mining and processing can be done for well under US$10/t so US$35/gEq is a good margin.
It's all about the margin.
Fort Knox and Victoria gold Dublin Gulch are low grade sub 1g/t mines in the Tintina Belt and they operate very profitably.
Nova Minerals doesn't really deserve a market cap that gives you 10moz for nothing!
The company's strategy has been to find and develop resources and move through to PFS.
It has done the PFS twice to reflect improved resource positions.
It now has cornucopia of targets that would make any WA based explorer ecstatic and its biggest problem is probably priorities.
Each of the major projects Korbel, RPM and Train/Trumpet are excellent prospects with current total resources of 10 moz with a lot more coming.
A US NASDAQ listing would certainly help particularly whencompared to peers.
Any geologist would be delighted to work on the Estelleproject which has over 20 potential prospects.
The projects will be large low grade bulk tonnage operationscomparable to other Tintina Belt mines.
And here are a couple of peers.
Note that US GoldMining Inc literally abuts the Estelletenements with 9.3moz AuEq resource in a mixture of porphyry copper and IRGSdeposits.
Enterprise value of US$88m or US$9.50/oz resource.
Snowline is a market favorite without a resource yet and amarket cap of US$542m.
Go figure
This was listed just a year ago at a value of~US$20/oz. Next door to NVA and same sorts of grades at its WhistlerProject.
Victoria Gold is a new Yukon producer with a four yearhistory producing ~165kozpa @ 0.7g/t.
Patience required here.
This is a downward sloping wedge that will soon be resolvedto the upside and will again move towards A$2.
(20min delay)
