The Nova Minerals (ASX: NVA) share price is racing higher today. We take a look at the updates the miner has released to the market today to explore what’s driving those gains.
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Today’s latest share price rally means Nova has now returned more than 233% in the last year. This is in contrast to the S&P/ASX 200 Index (ASX: XJO), which has seen a loss of 5.72% over the same period.
What’s pushing the Nova Minerals share price higher?
After temporarily entering a trading halt this morning, Nova Minerals released an update on its Thompson Brothers lithium project located in Manitoba, Canada. This project is owned by Nova’s unlisted subsidiary, Snow Lake Resources.
In the update, Nova outlines its intentions to advance the Thompson Brothers Project. The reasoning behind this decision relates to the recent strength in the lithium market.
Reportedly, Snow Lake Resources is commencing a preliminary economic assessment (PEA), anticipated to be completed over the coming months. Upon completion, a preliminary feasibility study (PFS) will be conducted to form a basis for gaining project development funding.
According to the announcement, upon re-evaluation of data on the Thompson Brothers Project, Snow Lake sees potential in updating the resource numbers. Currently, the resource is estimated to be 6.3 million tonnes at 1.3 lithium oxide, containing 86,940 tonnes of lithium oxide.
Lastly, Nova Minerals noted that Snow Lake has commenced the necessary procedure to list on a New York exchange.
CEO readying for an eventful year ahead
In this morning’s letter, Nova CEO Mr Christopher Gerteisen included a recap of 2020’s highlights, as well as a look at the company’s areas of focus for 2021.
As per the CEO’s letter, 2020 highlights include:
- 3.3 million ounces interim gold resource at Estelle
- Created the premier large scale gold developer
- Strong safety and environmental performance with proactive implementation of COVID-19 “test, trace, isolate” policies
- Phase 1 Leach studies demonstrate exceptional gold leach recoveries averaging 76% at the Korbel deposit
- Continued Exploration Success with priority targets set on the Estelle Gold Property to increase ounces significantly.
After what the company labels a successful year of growth, the focus for 2021 is to continue expansion. Nova remains determined to be the next low-cost gold producer in Alaska. Consequently, the miner plans to build upon the existing Estelle Gold Project and identify new targets.
Mr Gerteisen closed the letter with the following remarks:
This is a transformational time for Nova Minerals with an interest in two company-making assets moving at the same time at different stages in with key minerals in long term bull markets, with the two holding significant near-term upside and further value creation over the long term. I am committed to delivering on our objectives, meeting your expectations, maintaining open communication, and delivering on our value creation strategy.
Based on the current Nova Minerals share price, the company’s market capitalisation now comes in at $287 million.
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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.