This price breakout has probably succeeded: The share of the Australian gold explorer Nova Minerals (WKN A2H9WL / ASX NVA) shoots up another 11.9% today – with over 31 million shares traded. There are several reasons for this, as a new research report shows.
The analysts at Evolution Personal-Financial.com Advisors have taken a closer look at Nova Minerals and are now recommending the paper as a “speculative buy”. The experts see the price target at more than AUD 0.20! From today’s closing price of AUD 0.094 to AUD 0.20, there is again almost 113% price potential. Investors who have bet on the company’s shares since the first meeting of Nova Minerals by the editorial team of GOLDINVEST.de would now be 276% up!
Evolution Personal-Financial.com attributes the rapid revaluation of the price and company value of Nova Minerals in the last few days to the fact that the selling pressure from exercising the listed options ended on August 31st. Since then, the price has already risen by 65% and is now more in line with the rise in gold prices over the past eight months, according to the analysts.
New resource estimates in the short and medium term
They expect further news in the short term from the recently completed first drilling phase on the Block B target area (12 holes or only 33% of the 2020 drilling program) and Nova also expect to get the market at the end of this month via an interim update of the Korbel deposit resource estimate to inform. This is part of the massive Estelle project in Alaska.
For Korbel there is already a resource estimate of 181 million tons at 0.44 g / t gold and thus 2.5 million ounces of gold contained. In addition to the anticipated expansion in tonnes and ounces (+ 1,500m strike and additional mineralization at depth), Evolution Personal-Financial.com also expects a slight increase in grades given the recently reported drill results.
With ongoing and intensifying drilling (36 holes), another resource estimate is planned for the end of the year, according to the analysts, which will expand the resources of blocks A and B. With this update, part of the resource should also be able to be transferred to the higher category displayed. In addition, the experts expect the results of metallurgical tests as well as tests on ore sorting and heap leaching. It is also expected that Nova Minerals will provide mid-term exploration results on the Cathedral, You Beauty, Isabella and Sweet Jenny prospects.
With regard to the geology of the Estelle project, Evolution Personal-Financial.com states that it is an Intrusion Related Gold System (IRGS). The lower grades at Estelle, which were associated with lower risk, would be similar to mineralization seen at other millions of ounce gold deposits in the region.
The Tintina gold belt contains a number of IRGS deposits with low grades but millions of ounces of gold. According to the experts, this includes:
– Fort Knox (5.6 million ounces @ 0.3 g / t Au) from Kinross (market capitalization CAD 15 billion),
– Golden Summit (2.9 million ounces @ 0.7 g / t Au) from Freegold Ventures (376 million CAD) and
– Eagle (5.3 million ounces @ 0.6 g / t Au) from Victoria Gold (1.263 billion CAD).
Potential for high grade zones of mineralization at depth
In addition to the low grade mineralization, Evolution Personal-Financial.com also has the potential to discover some thick, high grade gold zones at depth, as demonstrated by Novas with a 101 meter drill section at 1.3 g / t Au.
With the exercised options, Nova Minerals now has a cash balance of around AUD 15 million as of September 1st. The company is in an excellent position to use this fresh capital to discover more gold ounces and to lower the risk of the Estelle project through development studies – such as metallurgy and feasibility studies. In addition, so the analysts further, Nova can accelerate the exploration and development programs with the now strengthened balance sheet.
Nova Minerals appears, Evolution Personal-Financial.com explains, as a gold exploration and development opportunity with low risk. The size of the resource (near surface, suitable for open pit and heap leaching) only appears to depend on how many meters the company will drill. The path towards development and start of production (or a takeover) already seems highly likely. Aside from the revaluation to reflect the rise in gold prices, the analysts believe that Nova stocks should experience another revaluation with the release of the upcoming “interim resource”. Then the course target will be checked again, it said.
In accordance with Section 34b WpHG and Section 48f Paragraph 5 BörseG (Austria), we would like to point out that clients, partners, authors and employees of GOLDINVEST Consulting GmbH hold or can hold shares in Nova Minerals and that there is therefore a possible conflict of interest. Furthermore, we cannot rule out that other stock market letters, media or research firms will discuss the values recommended by us during the same period. Therefore, symmetrical generation of information and opinions can occur during this period. Furthermore, there is a consulting or other service contract between a third party in the Nova Minerals warehouse and GOLDINVEST Consulting GmbH, which creates a conflict of interest, since this third party remunerates GOLDINVEST Consulting GmbH for reporting on Nova Minerals. This third party may also hold, sell or buy Nova Minerals shares and would benefit from a rise in the price of Nova Minerals shares. This is another clear conflict of interest.
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