Nova Minerals (ASX:NVA) share price jumps on gold discovery

Shares in the gold exploration company are climbing today after a major find

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St Barbara share price Minder underground looks excited a he holds a nugget of gold he has discovered.

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The Nova Minerals Ltd (ASX: NVA) share price has soared into the green on Thursday after the company made a key announcement.

At the time of writing, Nova shares are up 7.69% to 14 cents.

Let’s investigate further.

What did Nova Minerals announce?

In what was deemed a positive for the Nova Minerals share price, the company announced that a “large scale gold discovery” has been confirmed at its flagship Estelle Gold Project in Alaska.

Nova advised the maiden drill program at its RPM prospect at the project had “returned impressive results”. As such, drilling at this site is complete and the goal is now set on “delineating a maiden resource by late 2021”.

An additional diamond drill rig is expected on site “in the coming weeks to ramp up Korbell infill drilling”. This will “expand and prove-up resource to indicated status”, according to the release. Investors can expect an update on this in the fourth quarter.

The “significant intercepts” at the prospecting site “validates Nova’s strategy to unlock” the greater Estelle gold district, the company said.

What did management say?

Speaking on the announcement that is driving the Nova Minerals share price, CEO Christopher Gerteisen said:

This marks a major milestone for Nova Minerals. RPM is now confirmed as the next discovery within the Estelle Gold Project. Unlocking the district is no longer merely a plan — we HAVE unlocked it.

The gravity of this is huge for the company as well as the greater resource sector as it positively demonstrates we have another gold deposit that will add significant ounces to the global resource inventory at the Estelle Gold Project.

What’s next for the Nova Minerals share price?

According to the announcement, Nova’s “geological reconnaissance team” has completed field programs and has “unlocked further targets within the Estelle gold district”.

As a result, investors can expect more news on this as results and findings become available.

In addition, assay results are now pending for “over 10,000 metres of drilling” from Nova’s Korbel and RPM sites.

Finally, the company advised that a Snow Lake Resources update is due shortly. For reference, Snow Lake is Nova’s majority-owned lithium company.

Nova Minerals share price snapshot

The Nova Minerals share price has had a choppy year to date, posting a loss of 12.5% since January 1.

Despite this, Nova shares have still climbed 57% into the green over the last 12 months. In the last month alone, Nova shares have gained a further 27%.

This has outpaced the S&P/ASX 200 index (ASX: XJO)’s return of around 25% over the past year.

Should you invest $1,000 in Nova Minerals right now?

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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.

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