The Nova Minerals Ltd (ASX: NVA) share price has been on fire on Tuesday.
In late trade, the gold explorer's shares are up 10% to 16.5 cents.
Why is the Nova Minerals share price charging higher?
Investors have been bidding the Nova Minerals share price higher today following the release of a positive announcement.
According to the release, Nova Minerals has achieved significant grades at Korbel Main, within its flagship Estelle Gold Project located in the prolific Tintina Gold Belt in Alaska.
The release explains that Korbel drilling is ongoing, with almost 10,000 metres drilled to date and further results to follow in the near term. The results to date are geologically looking very promising.
Management notes they show encouraging gold grade indicators. In fact, wide zones of mineralised intrusive containing internal higher grade "blow out zones" continue to be intersected in infill drilling. This could lead to a significant upgrade to the resource estimate in its next update.
Management commentary
Nova's CEO, Christopher Gerteisen, appeared to be delighted with the drilling results.
He commented: "The significance of these grades obtained this early in the infill program further confirms a higher-grade feeder zone within the SE Block B area of the Korbel Main deposit. Our expectation is that we will start to consistently intersect internal high-grade 'blow-out' zones, and that is exactly what these results show."
"This could mean a significant upgrade to the resource, with the next update to be released later this year. It will also have a major impact on our pit optimizations moving forward. As such, we see this upcoming interim scoping study as a 'snap-shot in time', a starting point, one which we are only set to grow from."
"We are starting to get a clearer structure of the deposit, which bodes for our move into PFS [pre-feasibility study] after this interim scoping study, where we will continue to hone and improve our capital expenditure and operating expenditure estimates," he added.
