If a mining firm raises its total gold resource estimate for a property then it is generally seen as a positive by investors but that was not the case with the Nova Minerals (OTCMKTS:NVAAF) stock yesterday.
Trading Data
On Wednesday, NVAAF stock was down 8.30% to $0.71 with more than 23k shares traded, compared to its average volume of 92k shares. The stock has moved within a range of $0.7100 – 0.8000 after opening trading at $0.80.
Estelle Gold Project grows by over 50% to 9.6 million ounces
Yesterday, the company announced that it had decided to raise its gold resource estimate at the Estelle Project to 9.6 million ounces, which reflected a jump of as much as 54.9%. It is the company’s flagship project and is situated at the prolific Tintina Gold Province in Alaska. While it goes without saying that the announcement was a significant one, it did not lead to any optimism among investors and in fact, the Nova Minerals stock tanked by as much as 8% amidst a selloff.
The selloff may have been triggered by the fact that the investors may have been expecting a higher number with regards to the gold resource estimate. However, all the remains unclear at this point in time. Hence, it may be a good idea for investors to add the Nova Minerals stock to their watch lists and keep an eye on the developments over the course of the coming days for any kind of rebound.
