The Australian Exploration Company Nova Minerals (ASX NVA / WKN A2H9WL) primarily looks after the exploration and development of its huge Estelle gold project in Alaska. However, the company has a second hot topic in the fire: the Thompson Brothers lithium project run by the subsidiary Snow Lake Resources in which Nova owns the majority.
Today Snow Lake presented a new resource estimate for Thompson Lake, which represents a significant increase compared to the previous calculation, especially with regard to the proportion of resources that can be found in the higher category “indicated”. The new resource is 9.08 million tons with an average of 1% Li2O (cut-off 0.3%) in the indicated category and 1.97 million tons with an average of 0.98% Li2O in the inferred category.
And this resource comes from an area that does not even extend over 5% of the project area and is completely contained in a single, high-grade, lithium-bearing pegmatite, which partially extends to the surface and also remains open in strike and at depth.
As Snow Lake CEO Phil Gross said, the new resource estimate represents an important milestone in the company’s plan to become North America’s first fully sustainable, transparent and carbon-neutral lithium supplier. Only comparatively low exploration expenditures have been made and since the current resource comes from an area of less than 5% of the total property, Snow Lake has the potential to become a world-class lithium producer, according to Gross. Now that the electric vehicle market is at a tipping point, it is in a unique position to play an important role and fully integrate into the supply chain for the electric vehicle market, he said.
According to a report from proactiveinvestors.com, Nova believes the resource offers particularly upside when compared to the similar resource from Galaxy Resources (ASX GXY) for the Mt Cattlin project in Western Australia. Galaxy recently updated the Mt Cattlin resource to 11 million tons at 1.2% Li2O and 151 ppm Ta2O5 (tantalum oxide) and re-listed the reserves at 8 million tons at 1.04% Li2O and 139 ppm Ta2O5.
Conclusion: In the opinion of many experts, the market for electric vehicles is on the verge of a final breakthrough and thus the need for batteries and ultimately battery raw materials such as lithium in particular will increase rapidly. It is not for nothing that numerous battery and electric vehicle factories are being built all over Europe. And VW has just announced that it is even considering going public for the battery cell division and entering the business of raw materials required for battery production itself.
The timing for Nova / Snow Lake to further develop the Thompson Brothers lithium project, which already looks very promising, could hardly be more favorable. If Snow Lake succeeds, they are currently working on the company’s IPO, to expand resources and in particular to demonstrate the profitability of the project, we believe that this should generate great interest in the market and among investors. There is still a long way to go and of course there are still considerable risks with a young company like Snow Lake, but we believe the opportunities are also enormous. We’ll definitely stay tuned!
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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 information and opinion generation 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, as this third party pays GOLDINVEST Consulting GmbH for reporting on Nova Minerals. This third party may also hold, sell or buy Nova Minerals shares and would benefit from an increase in the price of Nova Minerals shares. This is another clear conflict of interest.
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