07:34:55 EDT Sun 21 Jul 2019
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Novo Resources Corp
Symbol C : NVO
Shares Issued 76,998,428
Close 2015-11-19 C$ 0.62
Recent Sedar Documents

Novo delays Beatons mill design, costing to early 2016

2015-11-19 13:13 ET - News Release

Dr. Quinton Hennigh reports

NOVO UPDATES PROGRESS AT ITS BEATONS CREEK GOLD PROJECT - PROVIDES OVERVIEW OF ITS NEW BLUE SPEC GOLD-ANTIMONY PROJECT

Novo Resources Corp. has provided an update of progress at its Beatons Creek gold project and an overview of its newly acquired Blue Spec gold-antimony project, both located in Western Australia.

Progress at Beatons Creek

Novo is aggressively evaluating the potential economics of an open-cast/gravity-recovery mining scenario for its Beatons Creek gold project. This work will form the basis for a coming preliminary economic assessment that will examine the viability of mining shallow, oxide-only resources documented in the company's recently released report, titled "NI 43-101 Technical Resource Report, Beatons Creek Gold Project, Pilbara Region, Australia." This report can be accessed on SEDAR or on the company's website.

In the company's news release dated Oct. 14, 2015, Novo discussed favourable metallurgical results indicating good gold recoveries are achievable with a simple, gravity-only mill. Soon after receiving this information, Novo began examining options and costs for constructing a new, turnkey mill for the Beatons Creek project. Two recent findings have caused Novo to reconsider this approach in favour of looking at potentially much cheaper alternatives.

Firstly, Novo recently contracted an engineer to inspect components comprising its newly acquired Blue Spec gold mill, part of the Blue Spec project. Although this mill dates to the mid-1980s, the jaw crusher and cone crusher were determined to be in good condition and potentially compatible with the Beatons Creek milling scenario. Both have adequate throughput to meet the scope of the Beatons Creek project.

Second, due to the downturn in the mining sector, Novo has identified numerous new and used mill components across Western Australia that are available at modest prices. Novo has been looking at a spectrum of equipment potentially compatible with the Beatons Creek milling scenario.

As a result of these additional investigations, completion of designing and costing a mill, a critical component of the coming economic study, will be delayed until early 2016. The company deems this added work and time as justifiable given the potential savings for the project. Work on other facets of the economic study are proceeding as planned.

Blue Spec gold-antimony project overview

The Blue Spec gold-antimony project encompasses approximately 125 square kilometres and is situated approximately 20 kilometres due east of Novo's Beatons Creek project. Gold mineralization is of orogenic lode vein style and is hosted by an east-west-trending shear zone extending approximately 20 kilometres along the length of the property. A significant amount of stibnite, an antimony-sulphide mineral, accompanies high-grade gold mineralization. This style of gold mineralization is present elsewhere in Australia, including at the Costerfield mine in Victoria state (operated by Madalay Resources Ltd.).

High-grade shoots at the Blue Spec and Gold Spec mines host indicated resources of 151,000 tonnes at 21.7 grams per tonne gold (105,300 ounces) and 1.7 per cent antimony and inferred resources of 264,000 tonnes at 13.3 grams per tonne gold (112,600 ounces) and 1.0 per cent antimony. This historical estimate, disclosed in Northwest's news release of Sept. 30, 2013, and in the mineral resource statement issued by Northwest on the same date, is stated to have been reported in accordance with the 2012 edition of the Australasian Code for reporting of exploration results, minerals resources and ore reserves (2012 JORC code), which is consistent with sections 1.2 and 1.3 of NI 43-101. For the key assumptions, parameters and methods used to prepare these estimates, please refer to the Northwest disclosure documents, which are available on Northwest's website. These are the most updated estimates and data available regarding the Blue Spec and Gold Spec deposits, and, as such, no work needs to be done at this point in time to upgrade or verify the estimates. Novo is unaware of the existence of any technical report prepared in connection with the technical information contained in the Northwest disclosure documents. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. Novo is not treating the historical estimate as current mineral resources or mineral reserves.

Since completing the Blue Spec acquisition on Oct. 5, 2015, Novo has undertaken a comprehensive review of the project with a focus on exploration potential. Findings from this study conclude:

  • Drilling has not closed off mineralized shoots at either of the historic Blue Spec and Golden Spec mines. In fact, each of these shoots is open to the east, west and at depth. Importantly, the 900-metre gap between these two mines (Golden Spec to the west and Blue Spec to the east) remains largely untested below depths of around 100 metres. See the attached table for historic drill intercepts from multiple zones across the project, including the Blue Spec and Golden Spec zones.
  • Splay zones coming off of the Blue Spec and Golden Spec veins have not been fully tested. Although drill holes targeting the main veins were largely successful at hitting those structures, many of these holes stopped short of testing nearby subparallel splays. Also, some holes appear to have been selectively assayed, so it is also possible that core from splay structures was never sampled.
  • Near-surface mineralization is evident in numerous locations along the 20-kilometre strike of the Blue Spec shear zone. Numerous shallow (less than 150 metres depth) drill intercepts from the Green Spec, Red Spec and Orange Spec zones reported in the attached table illustrate this. In addition to shallow potential, it is worth noting that these three zones are also open at depth.
  • Four historic surface rock-chip samples taken from outcrop and subcrop in areas ranging between 600 metres and 1,300 metres west of the Golden Spec deposit display high grades (from east to west: 86.9 grams per tonne gold with no antimony assay; 78.3 grams per tonne gold and 0.67 per cent antimony; 143.8 grams per tonne gold and 0.56 per cent antimony; and 22.5 grams per tonne gold and 1.21 per cent antimony). These samples suggest high-grade vein targets may present in this area.
  • Previous rock-chip sampling efforts appear to have lacked focus. Through mapping, Novo has identified structural zones and has undertaken detailed sampling. Results are expected in early 2016.

Based on the conclusions of this initial review, Novo sees considerable potential for expanding known zones and discovering new high-grade shoots. "We are quite excited by the prospect of potentially realizing significant cost savings for mill components for our Beatons Creek gold project," commented Dr. Quinton Hennigh, president, chief executive officer and director of Novo Resources.

"We are similarly excited about recognizing significant upside for expanding gold zones and discovering new high-grade shoots at our newly acquired Blue Spec project."

Dr. Quinton Hennigh, PhD, PGeo, is the qualified person pursuant to NI 43-101 responsible for, and having reviewed and approved, the technical information contained in this news release. Dr. Hennigh is president, chief executive officer and a director of Novo Resources.

    HISTORIC DRILL INTERCEPTS FROM THE BLUE SPEC GOLD-ANTIMONY PROJECT     

Hole No.               From          To      Length          Au          Sb 
                         (m)         (m)         (m)       (g/t)         (%)

BSP0215                  57          58           1         5.7        0.12
BSD0017               414.7         421         6.3        9.46        0.01
BSD0018                 457         458           1      123.81        0.03
including             457.5         458         0.5         245        0.03
and                   468.8         475         6.2       27.72        1.05
BSD0018_W1           477.55      484.03        6.48        6.55        0.08
and                     489         492           3        5.75        0.02
BSD0018_W2           476.54      477.48        0.94       19.12        0.05
and                  495.37         500        4.63        3.04        0.02
and                   554.4         557         2.6        8.91        0.01
BSD0019                 164      167.45        3.45        2.62        0.02
and                  167.45      169.27        1.82       14.86        1.89
BSD0022               401.8       406.2         4.4        65.4        4.96
including             401.8       403.4         1.6      176.63       13.61
BSD0027                 470      471.15        1.15       62.67        0.43
BSD0028              425.63      427.64        2.01       40.71        0.01
BSD0033_W1            520.2       521.7         1.5       14.18        0.07
BSD0034              532.52      534.13        1.61       30.57        4.14
BSD0034_W1              597         599           2         3.7        0.01
BSD0035               608.6       617.5         8.9        4.93        1.48
and                     620         622           2        6.46        0.01
BSD0035_W1              496         499           3        2.66        0.01
and                     587         594           7        3.03        0.05
and                   609.2       620.7        11.5       12.71        0.49
including             614.2       614.7         0.5        78.1        0.16
BSD0036                 485         490           5        2.67        0.02
and                     506      506.55        0.55        4.74        0.01
and                     617       619.2         2.2        3.83        0.01
and                   622.6       625.7         3.1        3.07        0.01
BSD0036_W1            486.5       487.5           1        3.02        0.32
and                     490         493           3        2.91        0.02
and                     565         567           2        2.86        0.03
and                   695.1       697.1           2        4.94        0.46
and                   714.1       717.6         3.5      112.16       10.55
BSD0036_W2           501.33       502.9        1.57        3.32        0.01
and                     572      573.95        1.95       17.49         0.8
and                  739.75      740.65         0.9       13.98        0.07
BSD0040              715.83       718.8        2.97        3.08        0.01
BSD0041                 792      792.38        0.38        7.95        0.08
BSD0042_W1            414.1      415.95        1.85       18.99        0.01
and                  419.25      424.47        5.22        4.05        0.01
BSD0044_W1              413      414.85        1.85       17.61        0.11
including            413.95      414.85         0.9        34.9        0.19
and                  416.55      417.95         1.4        3.21        0.02
and                   420.6      421.77        1.17        3.16        0.02
BSS_177                 121         125           4         4.5        0.01
BSS_178                  42          44           2         3.7        0.01
BSS_184                  72          76           4           6           0
DDH_101              370.94      374.45        3.51       98.34        8.17
DDH_101-D            364.85      372.72        7.87       11.08        2.16
including            371.63      372.72        1.09       43.47         4.3
DDH_103-D            305.71      306.93        1.22         5.6           0
and                  309.98      313.41        3.43       69.64        1.25
including            310.59      311.68        1.09      201.43         3.2
DDH_104              453.85      454.76        0.91        3.32           0
DDH_106              233.48      252.23       18.75       30.84        2.83
including            240.79      243.23        2.44        73.4       11.75
DDH_21                285.7      293.37        7.67       96.09        4.02
including            290.47       292.3        1.83      255.62       16.37
DDH_22               323.16      329.97        6.81       42.11       17.01
including            328.85      329.97        1.12      127.04        25.4
DDH_505                0.99         1.6        0.61       21.74        9.38
DDH_506                   0        7.87        7.87        4.81        1.61
including              4.63        5.37        0.74          30        3.89
DDH_507                 7.7       19.21       11.51         5.2        0.16
DDH_507-D1            25.75        30.5        4.75       15.42        1.65
DDH_507-D4            71.75       76.75           5       20.72        9.48
DDH_507-U1             23.6       38.75       15.15        5.99        1.37
including             35.05       35.55         0.5        37.6       12.95
DDH_507-U3            26.75          27        0.25          30        0.86
and                    52.5       54.25        1.75       15.71        2.55
DDH_508                 6.9         8.4         1.5       18.44        2.61
and                    11.4        11.7         0.3          30           1
and                    18.9        24.3         5.4       15.76        4.27
DDH_509                38.7        39.9         1.2       12.25        4.73
DDH_510                 1.8           3         1.2       21.64        0.55
including               2.7           3         0.3          52        0.04
and                     7.1         7.4         0.3           7        0.02
DDH_512                22.6        24.4         1.8       18.87        6.93
DDH_512-U2            40.25          42        1.75       17.34        4.02
including              40.5          41         0.5          28       13.55
DDH_515                2.25        4.75         2.5       13.72        8.72
DDH_516                25.5       26.25        0.75       11.53        4.51
DDH_517                 3.1         9.1           6        4.77        0.61
DDH_518               117.8      119.05        1.25        29.6        4.79
DDH_520              124.47      125.61        1.14       68.44       15.94
including            124.97      125.22        0.25       204.5       30.07
DDH_522              125.75      126.75           1        4.08        0.02
DDH_523               128.3       145.6        17.3          21        1.49
including             128.3       128.5         0.2      258.98          19
MP0003                    3          16          13        5.26           0
MP0004                   15          16           1        3.42           0
MP0005                    5          13           8        7.26           0
MP0006                    3          14          11        5.61           0
MP0007                    1          13          12        8.85           0
MP0008                    5          15          10       17.09           0
and                      18          25           7        6.43           0
including                 8           9           1        41.2           0
MP0009                    9          28          19        6.37           0
MP0010                    3           4           1        4.46           0
MP0026                   24          39          15        3.43           0
MP0030                   25          30           5        3.72           0
RCPH0021                 12          13           1        6.76        0.02
BSD0037              232.68      233.84        1.16        5.26        0.01
BSP0174                  88          89           1        4.23        1.37
BSP0177                 137         143           6        2.52           0
and                     149         160          11        7.53        0.01
BSP0178                 177         179           2        4.89        0.01
BSP0264                  58          64           6        2.43        0.01
and                      68          70           2        2.78        0.01
and                      92         105          13        2.11        0.01
and                     121         129           8        7.43        0.01
and                     136         138           2        4.08        0.01
BSP0266                  23          27           4        4.53           0
BSP0273                 179         180           1        3.57        0.01
BSP0275                 117         118           1        3.86        0.01
and                     124         126           2         3.1        0.01
BSP0279                 148         151           3        4.18        0.01
BSP0280                 182         183           1        3.13        0.01
BSP0303                  91          92           1         4.4        0.01
BSP0305                 145         148           3           3        0.01
BSP0312                   0           8           8        2.21        0.08
BSP0316                  17          19           2        3.09        0.01
BSD0001                 295         296           1       11.85        0.04
and                   299.6       300.5         0.9       100.5       16.85
BSD0002                 342         343           1        4.06        0.01
and                  343.32         344        0.68         214        0.06
BSD0007                 292       292.5         0.5        7.44        0.01
BSD0008              134.94      136.26        1.32       28.91        1.15
BSD0009                 228         229           1          51         3.1
BSD0010              188.33      189.23         0.9       61.35       20.28
BSD0011               190.3       193.1         2.8       77.59        7.22
BSD0012               223.9       226.2         2.3       75.51        7.66
BSD0013              229.88      230.55        0.67        42.9        0.02
BSD0014              153.25         155        1.75       18.31        0.06
BSD0015                 233       238.9         5.9        2.99        0.03
BSD0016                 148      151.65        3.65        6.84        0.36
BSD0021                 186         189           3        1.71        0.03
BSS_035                  16          20           4        5.74        0.01
BSS_038                  22          24           2        8.71        0.06
BSS_041                  14          16           2       31.15       10.21
BSS_048                   0           5           5          14        3.67
including                 3           4           1        47.3       12.85
BSS_050                  14          16           2       10.19        0.34
BSS_153                  49          50           1        4.62        0.02
BSS_158                  83          86           3        5.26        0.03
GS_15                    51          53           2        6.66        0.29
GS_16                    53          54           1        4.13        0.04
GS_20                   129         131           2       35.15         0.2
GSI_001              167.12      168.25        1.13        6.88        0.01
GSI_003               222.7       224.8         2.1       17.09        5.53
including             222.7      223.57        0.87       33.32       10.24
GSI_004               152.5      158.97        6.47       34.21        6.77
including             155.6      155.97        0.37        98.1        10.8
GSI_006              166.27       166.8        0.53        20.4        0.04
GSI_007              184.36      186.46         2.1       20.09        0.04
GSI_009               214.6       215.4         0.8       17.33         0.2
GSI_014              150.16      151.75        1.59       12.17        0.02
including            151.34      151.75        0.41        40.1        0.02
BSP0148                  63          64           1        6.87           0
BSP0168                  65          66           1        9.04        1.85
BSS_185                  40          42           2        9.63        0.01
BSS_191                  33          46          13        5.66           0
BSD0024                 157         158           1        2.08        0.02
and                   163.1      165.12        2.02         9.9        0.27
BSD0025                 111         114           3        8.36        0.01
BSP0023                  10          12           2        3.06        0.01
and                      23          28           5       23.25        0.99
including                23          26           3       37.23        1.52
BSP0075                  35          42           7        11.6        3.66
BSP0079                  50          52           2        8.14        0.04
BSP0088                  66          70           4        6.72        0.02
BSP0089                  99         107           8       14.74        0.06
BSP0109                 150         163          13       13.78        1.33
including               150         155           5       32.13        3.35
BSP0116                 156         158           2         6.4        0.03
BSP0118                  47          52           5       12.13        5.59
including                47          49           2       25.55         6.4
BSP0119                  59          61           2         7.1        0.01
BSP0128                  28          30           2        20.1        4.95
BSP0129                  38          50          12        6.85         0.5
including                38          40           2        27.6        1.36
BSD0038_W1            474.6      475.38        0.78        9.44        0.01
and                  491.55         492        0.45        7.32        0.02
BSD0039              721.25      723.47        2.22        3.76        0.74
and                   782.4      783.64        1.24       15.82        4.02
and                   837.5       839.5           2        3.27        0.01
BSP0061                  18          21           3        2.11        0.05
BSI_008                 426         431           5       53.32        1.66
BSI_011              440.46       442.7        2.24       29.45        5.03
BSI_012              491.87       492.4        0.53        25.5        0.02
BSP0040                  82          84           2        3.59        0.03
BSP0041                 117         118           1        3.98        0.02
BSP0047                   9         138           8        5.05        2.45
BSP0090                   0           3           3        1.94        0.03
and                      53          56           3        3.23        0.03
BSP0095                  87          88           1        10.6        0.28

Drill intervals in this table are historic and date from the early 
1980s to 2012. Some of these intercepts are in or near mine workings 
dating to the late 1980s and early 1990s. Some, but not all of these 
drill results form the basis for the JORC 2012-compliant resource 
estimate announced by Northwest Resources Ltd. in a news release 
dated Sept. 30, 2013, and in the mineral resource statement issued by 
Northwest on the same date. This table provides readers with an 
overview of the widths, grades and depths of historic drill intercepts 
encountered on the Blue Spec property.

We seek Safe Harbor.

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