Nova Minerals (ASX:NVA) share price rockets 52% on gold update

Let's take a closer look at the gold update.

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The Nova Minerals Ltd (ASX: NVA) share price is off to a flying start this week and is trading 50% higher at 16.5 cents.

Nova Minerals shares are on the move after the company announced a key update regarding its flagship Estelle Gold Project.

Here's what we know from what Nova released.

Rising gold share price represented by a green arrow on piles of gold block.

Image source: Getty Images

Nova Minerals share price spikes on 'bonanza' gold results

Nova announced it had intersected a broad zone of high-grade "bonanza" gold grades when drilling at the Estelle site's RPM North mineralised prospect.

Drilling is now complete at this section with a further three holes pending. According to Nova, the goal is to "delineate a maiden resource by late 2021" and then advance through the project's pipeline.

This marks the end of the maiden drill program at RPM North, and a follow-up work program is now being planned for the next round of drilling.

Aside from this, the work program also intends to extend the gold zone's footprint for the RPM South prospect as early as possible in 2022.

Furthermore, the RPM prospect is "now confirmed to be the second significant project development area at Estelle, and will be a key component" in the path to production at its Estelle site.

The results build on previous drill results Nova announced last month regarding its RPM North prospect. The company now has assay results pending for over 10,000m of drilling from both its RPM prospect and additional Korbel Main site.

Nova also advised that all rigs have moved back to the Korbel Main site, to maximise infill and drill data for upcoming mineral resource updates.

In a separate point, Nova also exclaimed that a "Snow Lake Resources update (is) due shortly".

What did management say?

Speaking on the announcement, Nova Minerals CEO, Christopher Gerteisen said:

This marks a major milestone for Nova Minerals. RPM is now confirmed to be the second significant project development area at Estelle and will be a key component of our ongoing resource development work on our path towards production at the Estelle Gold Project. This is what unlocking a district looks like, and we will continue to do so with Korbel and RPM representing only 2 of 15 known prospects with the wider Estelle Gold Project claims. In addition to these, there are numerous unnamed colour anomalies across our 324km2 claim block.

Nova Minerals share price snapshot

The Nova Minerals share price has had a difficult year to date, having posted a return of just 3% since the beginning of the year.

Despite this, it has climbed over 68% into the green in the past year of trade, after rallying 14% in the last month.

This result outpaces the S&P/ASX 200 Index (ASX: XJO)'s gain of around 20% in the past year.

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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