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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