The Phase 2 Scoping Study confirms the potential for a commercially robust mining operation at the
Highlights
- The Phase 2 Scoping Study, based on a mining scenario which focuses on the higher grade, confirms the technical and financial robustness of a commercial mining operation at the
- Financial Metrics
o Net Present Value (NPV5%) of
o Internal Rate of Return (IRR) of 53% pre-tax
o 11 month payback period
o Undiscounted net free cashflow of
o Annual free cash flow after the payback period of ~
o All in Sustaining Costs (AISC) 1st year
o Pre-production capital of
- Mining Metrics
o Annual production 1st year 363 Koz Au and LOM average increased to 132 Koz pa
o Total production increased to 2.25
o Early production driven by the higher grade RPM resources with 2.02 g/t Au material
- Scoping Study only includes 3 of the 4 resource deposits currently defined within the
- All deposits are from surface suitable for open pit truck and shovel mining methods. Test work has indicated that the gold is easily liberated with an average recovery of 88.3% using conventional processing methods (Figure 13*)
- The Scoping Study envisages mining commencing at RPM, targeting a higher grade starter pit initially, and then has factored the optimum mine sequencing throughout the LOM
- The Scoping Study is based on a solid foundation with reputable engineering firms, detailed and conservative geological modelling, extensive test work and front-ended high grade ore
- Study provides great exploration upside and a solid platform for growth and has identified clear opportunities for immediate improvement of metallurgical test works that would add to the bottom line
- Nova intends to undertake fines by-pass test work which has the potential to further increase the LOM production schedule and most importantly also reduce waste
- The proposed
Significant Potential Upside Drivers for the PFS
- Estelle has all the hallmarks of a world-class gold district with a 9.9
- The study production and cash flow profiles (Figures 3 & 4*), along with the NPV sensitivity analysis (Figure 5*), show that even a 10% increase in the LOM average mill feed grade above the current 0.73 g/t Au increases the NPV by ~
We already know where to look with targets established at:
- RPM
o 2023 drill program focused on infill and expansion of the high-grade resource
o 600m high priority continuous target area linking RPM North to RPM South which intersected a 2nd large mineralized intrusive in the lower part of holes RPM-037 (ASX Announcement:
- RPM-037: 103m @1.0 g/t Au, incl 30m @ 1.9 g/t Au, 21m @ 2.5 g/t Au from 325m
- RPM-037: 79m @ 1.0 g/t Au from 471m, incl. 30m @ 2.0 g/t Au from 501m
- RPM-025: 76m @ 1.2 g/t Au from 440m, incl 43m @ 1.5 g/t Au from 474m
- Train
o 2023 drill program focused on exploration and resource definition drilling to target the RPM-style mineralization at both Train and Trumpet (ASX Announcement:
- Cathedral
o Cathedral 2.01 Moz Au Inferred resource was not included in the Phase 2 Scoping Study with a potential high-grade target zone remaining to be drill tested (ASX Announcement:
To view CEO Christopher Gerteisen Video, please visit:
https://www.abnnewswire.net/lnk/7S1W09I8
*To view the full PFS Study, please visit:
https://abnnewswire.net/lnk/87B17D38
About
Additionally, Nova has an indirect interest in the
Contact:
P: +61-3-9614-0600
F: +61-3-9614-0550
WWW: novaminerals.com.au
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