Strategy & Studies
Advancing Project, Economic, and Environmental Studies
Overview
Development Optionality with Significant Upside
The Pre-Feasibility Study (PFS) currently underway is considering a strategy to achieve production as soon as possible with a scalable operation, subject to market conditions and strategic partners, by;
1. RPM High-Grade Starter Mine:
Establishing an initial lower capex smaller scale operation at the high-grade RPM deposit for potential near term cashflow at high margins to self-fund expansion plans; and/or
2. Expanded Project – Korbel + RPM + Regional:
Scalability – Large project for both gold and critical minerals with a pipeline spanning decades of potential production from over 20 known prospects. Higher capex larger mining operation with increased gold production, cash flow, and mine life, which is of interest to potential future large gold company strategic partners.
3. Stand Alone Antimony-Gold Starter Mine:
With China announcing export restrictions on antimony, the Company is now also investigating the possibility to fast track the Stibium gold-antimony prospect development option with potential US Dept. of Defense (DoD) support.
Pre-feasibility Study
Key Studies Underway
Environmental Studies
Ongoing environmental baseline studies include surface and ground water sampling and modelling, wetlands mapping, and wildlife surveys.
Stakeholder Engagement
Continuing positive engagement with stakeholders, regulators, and our local communities.
Host Rock Studies
Ongoing hydrogeological , geotechnical, and waste rock geochemical characterization studies.
Metallurgical Studies
Ongoing metallurgical studies including heap leach, ore sorting, CIL, and critical minerals by-product extraction.
Current and proposed conceptual flowsheet, which is being tested as part of the PFS level studies underway
Scoping Study
Scoping Study Confirms the Potential for a Commercially Robust Mining Operation at the Estelle Gold Project
Snapshot in time May 2023
The Study represents a snapshot in time utilizing the resources from 3 of the 4 currently defined large deposits within the Estelle Project (RPM North, RPM South and Korbel Main), based a mining scenario which focused on the higher grade material, and using a gold price of US$1,850 oz. The Study highlights the technical and financial robustness for Estelle to support a large open pit mining operation, with ideal ore body geometry that allows mining high-grade ore in the early years for a quick payback from RPM, and bulk tonnage mining from Korbel at a low strip ratio in the later years, using a central processing plant located at Korbel.
Test work has indicated that the gold is easily liberated with an average recovery of 88.3% using conventional processing methods and 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.
Sensitivity analysis shows the project is highly sensitive to mill feed grade
The sensitivity analysis showed that the Project’s overall economics is highly sensitive to mill feed grade, with just a 10% increase in the LOM mill feed grade from the current 0.73 g/t Au to 0.8 g/t Au potentially increasing the Project’s NPV by USD$277M to USD$931M. As a result Nova’s core focus now is to define minable resources to increase the LOM mill feed grade above the 0.73 g/t Au, and we know where to look, RPM, Train and Cathedral.
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. It 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.
Ore Sorting Test Work
Particle Density XRT Ore Sorting Works Extremely Well on the Estelle Ore Bodies
Particle density XRT (X-Ray Transmission density ore sorting, NOT optical ore sorting) ore sorting is a proven technology which has been successfully implemented as part of the pre-treatment concentration process in many mines around the world (see below for examples of mines using or intending to use ore sorting). X-rays are used to examine the density of the rock being sorted in order to separate a target mineral, ore or element from waste prior to the haulage, crushing and processing mining stages. By rejecting a considerable proportion of the lower grade rock before processing through the mill, the mill feed grade is effectively increased and energy requirements and tailings generation are reduced, resulting in a more environmentally friendly mining operation with improved overall mine efficiencies and economic benefits.
The process starts with raw ore being scanned with X-rays and data collected from the detector. With the help of big data and intelligent algorithms, the ore and waste rock is separately identified and a high-pressure blower sprays the waste rock away to realize efficient automatic intelligent sorting.
Ore sorting test work completed on Estelle drill core at Tomra’s assessment site in Sydney has shown that particle XRT ore sorting technology works extremely well on the Estelle ore bodies as the gold is contained in sheeted veins within the high density (4-7 S.G) arsenopyrite rock which is vastly different to the lower density (2 S.G) country rock. Extensive testing has shown the potential to upgrade 0.4 g/t Au material up to 6 g/t Au, with the optimum at 0.73 g/t Au. This allows Nova to operate at a lower cut-off grade with reduced processing costs and increased mine production.
The recent strategic review also recommended reviewing various selective ore sorting options on material from both RPM and Korbel with a combination of different sensors and conducting a pilot scale ore sorting test program.
Nova envisages the density based XRT ore sorters to come online in the later years, well after the payback period and through cash flow. The sorters can be installed on a modeller basis without a high capital intensity as all infrastructure will already be established.
Mining Companies Currently Using or Proposing to Use Ore Sorters
- Degrey Mining – Malina Gold Project, Toweranna Deposit (Gold), Western Australia, Australia – Information link here
- Pilbara Minerals – Pilgangoora Project (Lithium), Western Australia, Australia – Information link here
- Vista Gold Corp – Mt Todd Gold Project (Gold), Northern Territory, Australia – Infomation link here
- Couer Mining – Kensington Gold Mine (Gold), Southeast Alaska, USA – Information link here
- Stornoway Diamond Corp – Renard Mine (Diamonds), Quebec, Canada – Information link here
- Mikroman Mining – Mugla, Aydin & Usak mines (Quartz), Turkey – Information link here
- Gowest Gold – Bradshaw Deposit (Gold), Ontario, Canada – Information link here
- Agino Eagle – Sinter Deposit & Pinos Altos Mine (Gold), Chihuahua State, Mexico – Information link here
- Pantoro Ltd – Nicholsons Project (Gold), Western Australia, Australia – Information link here
- Minsur – San Rafael Mine (Tin), Peru – Information link here