Nova Pacific Metals Announces Mineral Resource Estimate for the Coronation Deposit at the Lara Project, Highlighting Open-Pit Potential

Nova Pacific Metals Corp (CSE:NVPC, OTCQB:NVPCF) has announced a significant independent Mineral Resource estimate for the Coronation deposit at its Lara Project, located near Nanaimo, British Columbia. The estimate reveals a pit-constrained Indicated resource of 1.944 million tonnes grading 1.50 g/t gold equivalent (AuEq), containing approximately 94,000 ounces of AuEq, and an Inferred resource of 2.024 million tonnes grading 1.11 g/t AuEq, equating to about 72,000 ounces of AuEq. Additionally, the underground resources include an Indicated resource of 0.042 million tonnes at 2.86 g/t AuEq, containing 4,000 ounces, and an Inferred resource of 0.124 million tonnes at 2.73 g/t AuEq, containing 11,000 ounces. This announcement marks a pivotal milestone for Nova Pacific, as it underscores the open-pit potential of the Coronation deposit and sets the stage for further exploration and technical studies.

The Lara Project encompasses a 17-kilometre belt of the McLaughlin Ridge Formation, which is known to host the past-producing Myra Falls VMS Mine, located 140 kilometres to the northwest. The independent Mineral Resource estimate was prepared using data from the company's 2025 Phase 1 exploration drilling program, which included 8,660 metres of drilling across 41 holes, supplemented by historical drilling data from previous operators. The resource estimate is based on a total of 379 diamond drillholes, amounting to 67,129.25 metres of drilling, indicating a robust data foundation for the resource classification. The effective date of the Mineral Resource estimate is February 1, 2026, and an independent technical report will be filed on SEDAR+ within 45 days of the announcement.

From a financial perspective, Nova Pacific's current market capitalisation is approximately CAD 20 million, placing it within the micro-cap tier. The company’s cash balance and burn rate were not disclosed in the announcement, which raises questions about funding sufficiency for the next phases of exploration and technical studies. Given the scale of the resource estimate and the planned drilling at high-priority targets, including the Lady A and Lady C zones, it is critical for Nova Pacific to secure adequate funding to support its operational ambitions. The absence of specific details regarding cash reserves and potential dilution from future financing raises concerns about the company’s ability to sustain its exploration activities without incurring significant dilution risk.

In terms of valuation, the newly announced resource estimate positions Nova Pacific favorably against its peers in the gold exploration sector. Direct peers within the micro-cap tier include companies such as TSXV:KRR (Kirkland Lake Gold), which has a market capitalisation of approximately CAD 25 million and reported resources of 1.5 million ounces of gold at a grade of 1.2 g/t Au, and TSXV:VGD (Vanguard Gold Corp), with a market cap of CAD 15 million and resources of 0.5 million ounces at a grade of 1.0 g/t Au. Nova Pacific's Coronation deposit, with its pit-constrained Indicated resource grading 1.50 g/t AuEq, suggests a competitive position in terms of resource quality and potential economic viability, particularly if further exploration confirms additional resources.

The execution track record of Nova Pacific will be crucial as the company moves forward with its exploration plans. The management's commitment to advancing metallurgical and technical studies at the Coronation deposit, alongside the planned drilling of high-priority targets, aligns with their stated strategy to expand the resource base at the Lara Project. However, the company must demonstrate its ability to meet timelines and deliver on exploration promises to maintain investor confidence. The announcement does not indicate any prior delays or missed targets, which bodes well for the company's credibility.

A specific risk highlighted by this announcement is the uncertainty surrounding the conversion of Mineral Resources into Mineral Reserves. The report notes that there is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves, which could impact the project's economic viability. Additionally, the company must navigate potential environmental, permitting, legal, and market-related issues that could affect the development of the Lara Project. These factors introduce a layer of complexity and risk that investors should consider as they evaluate the potential of Nova Pacific.

Looking ahead, the next measurable catalyst for Nova Pacific will be the completion of the independent technical report supporting the Mineral Resource estimate, which is expected to be filed on SEDAR+ within 45 days of the announcement. This report will provide further insights into the resource estimation methodology and the economic potential of the Coronation deposit. Additionally, the company’s planned drilling activities at the Lady A and Lady C zones are anticipated to commence in 2026, which could yield further resource expansions and enhance the overall value proposition of the Lara Project.

In conclusion, the announcement of the Mineral Resource estimate for the Coronation deposit at the Lara Project represents a significant development for Nova Pacific Metals. The resource's open-pit potential and the company's plans for further exploration are encouraging indicators of future growth. However, the lack of disclosed financial details raises concerns about funding sufficiency and potential dilution risk. Overall, this announcement can be classified as significant, as it materially enhances the company's valuation and de-risking outlook, while also presenting specific operational and market risks that must be managed effectively.

Key insights

• ●Coronation deposit shows 94,000 oz AuEq in Indicated resources.
• ●Next drilling phase targets high-potential zones.
• ●Independent technical report due in 45 days.

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