Novo Resources Corp. (
“Novo” or
the
“Company”) (TSX-V: NVO; OTCQX: NSRPF) is
pleased to announce an updated resource estimate (the “
2019
Resource Estimate”) for its Beatons Creek conglomerate
gold project located in the eastern Pilbara region of Western
Australia. The 2019 Resource Estimate incorporates diamond drilling
and trench channel sampling conducted in 2018. Additionally, bulk
sampling has been used to validate a significant portion of the
oxide resource. The effective date of the 2019 Resource Estimate is
March 29, 2019. A technical report in respect of the 2019 Resource
Estimate will be filed under the Company’s SEDAR profile upon its
completion.
Highlights:
- The updated 2019 Resource Estimate includes a 30% increase in
tonnes driven predominantly by an improved geological framework
from the recent diamond drilling program compared to the previous
2018 estimate supported by the technical report titled “NI 43-101
Technical Report Resource Update, Beatons Creek Gold Project,
Pilbara Region, Australia” issued on November 20, 2018 (the
“2018 Resource Estimate”) and filed on SEDAR
(www.sedar.com) under the Company’s profile on November 21,
2018.
- The new model sees an increase of 115,000 oz Au (+33%) in the
Indicated Mineral Resource category (over the 2018 Resource
Estimate’s Measured + Indicated) within the Open Pit.
- Recent three-stage gravity recoverable gold
(“GRG”) test work on the fresh mineralization
achieved a gravity recovery in the range of 89-95%.
- The expanded 2019 Resource Estimate, along with Beatons Creek’s
high metallurgical recovery (+97% gravity + carbon-in-leach; please
refer to the Company’s news release dated March 7, 2017 for further
details), make it the premier gold deposit in the Nullagine mining
camp in the eastern Pilbara region.
- Mineralization remains open to the north-west and south-west
with several areas identified for resource development
drilling.
2019 Resource Estimate:
Open Pit Mineral Resources
(oxide and fresh mineralization) |
|
Cut-off
Grade |
Tonnes |
Grade |
Ounces
Troy Au |
Classification |
Au g/t |
(x1000) |
Au g/t |
(x1000) |
Indicated |
0.5 |
6,645 |
2.1 |
457 |
Inferred |
0.5 |
3,410 |
2.7 |
294 |
Open Pit Mineral Resources
(oxide mineralization) |
|
Cut-off
Grade |
Tonnes |
Grade |
Ounces
Troy Au |
Classification |
Au g/t |
(x1000) |
Au g/t |
(x1000) |
Indicated |
0.5 |
4,500 |
1.9 |
272 |
Inferred |
0.5 |
765 |
1.8 |
44 |
Open
Pit Mineral Resources (fresh mineralization) |
|
|
|
Cut-off Grade |
Tonnes |
Grade |
Ounces Troy Au |
Classification |
Au g/t |
(x1000) |
Au g/t |
(x1000) |
Indicated |
0.5 |
2,145 |
2.7 |
185 |
Inferred |
0.5 |
2,645 |
2.9 |
250 |
Underground Mineral Resources (fresh
mineralization) |
|
Cut-off
Grade |
Tonnes |
Grade |
Ounces Troy
Au |
Classification |
Au g/t |
(x1000) |
Au g/t |
(x1000) |
Inferred |
3.5 |
885 |
5.3 |
152 |
Total
Mineral Resources (oxide and fresh mineralization; open pit and
underground) |
|
Cut-off
Grade |
Tonnes |
Grade |
Ounces Troy
Au |
Classification |
Au g/t |
(x1000) |
Au g/t |
(x1000) |
Indicated |
0.5 |
6,645 |
2.1 |
457 |
Inferred |
0.5, 3.5 |
4,295 |
3.2 |
446 |
Notes:
1. Open pit Mineral Resources contain oxide and
fresh mineralization within an optimized shell and constrained
within a mineralized wireframe. |
2. An optimized Whittle pit shell was estimated
with the following indicative parameters: |
(a) USD $1,311 (AUD $1,850) / troy
ounce; |
(b) Metallurgical recoveries of 95%
oxide and 90% fresh; |
(c) SGs applied: Oxide 2.40 t/m3
and fresh 2.85 t/m3 based on measurements taken on drill core; |
(d) USD $2.40 / tonne mining cost
for oxide and USD $3.68 / tonne for fresh; |
(e) USD $17.00 / tonne oxide and
USD $19.00 / tonne fresh processing cost; and |
(f) USD $3.00 / tonne general and
administrative costs. |
3. Underground Mineral Resources contain fresh
mineralization outside the optimized shell. Underground resources
are constrained to discrete areas of contiguous mineralization. NB:
cut-off grade for underground resource has been increased from 2.0
Au g/t to 3.5 Au g/t for the 2019 Resource Estimate. |
4. Columns may not total due to rounding. |
5. One troy ounce is equal to 31.1034768
grams. |
“We are very pleased to announce this Mineral
Resource increase at Beatons Creek,” commented Mr. Rob Humphryson,
CEO and a director of the Company. “Importantly, this demonstrates
the potential for conglomerate gold deposits in the Pilbara. Novo
has significant land holdings across the Pilbara prospective for
this type of mineralization. We have leveraged our learnings and
applied bulk sampling and processing techniques from our work at
Comet Well in the west Pilbara, with more than 40 two-tonne samples
excavated at Beatons Creek and treated at the SGS pilot plant
facility in Perth underpinning the robustness of this increased
Resource.”
In this news release, the terms “Mineral
Reserve”, “Mineral Resource”, “Inferred Mineral Resource”,
“Indicated Mineral Resource” and “Measured Mineral Resource” have
the meanings given in the CIM Definition Standards on Mineral
Resources and Mineral Reserves adopted by the Canadian Institute of
Mining, Metallurgy and Petroleum Council.
Resource Modelling
The spatial extent of the 2019 Resource Estimate
covers a surface area of over 2km x 2km. Mineralization exists as
multiple sub-horizontal, narrow stacked and un-classified
ferruginous-conglomeritic horizons (“reefs”),
which are interbedded with un-mineralized conglomerate, sandstones
and grits with minor intercalations of shale, mudstone, siltstone
and tuffs. Reefs vary from <1 m to several metres thick and are
continuous for up to 2km.
Mineral Resources were estimated from 3,909
samples, sourced from 2,422 samples from reverse circulation holes,
302 samples from diamond core holes, and 1,185 trench ‘channel’
samples. The majority of assays used for the estimate were
determined using the LeachWELL (cyanide leaching) technique, with
the 2018 diamond drilling and trench programs also analysing the
LeachWELL residues by fire assay.
Grade interpolation was performed using a
three-pass Ordinary Kriging (“OK”) estimation
method within modelled reef domains. Wireframed mineralized domains
differentiate between regionally continuous marine lags and
localized stacked-channel mineralization. A weathering profile has
further differentiated the estimate into oxide and fresh
components.
All samples were composited to 1m for
estimation. Composites were analysed and top-cut per domain using
statistical and graphical methods. OK was constrained by variograms
per domain, though some domains had too few samples to define an
acceptable variogram. In such cases, the most appropriate domain
variogram was applied based on geological reasonableness. A total
nugget effect of 65% was applied during the kriging process. Two
estimation block sizes were applied: 20m by 20m by 1m and 40m by
40m by 1m for relatively densely spaced data versus sparsely spaced
data respectively. All blocks were sub-blocked to 2.5m by 2.5m by
0.25m. Block size and number of samples applied in search passes
were selected based on kriging neighbourhood analysis. Estimation
was undertaken in three passes, with passes one and two being no
more than the geostatistical range defined in the variogram. Search
pass three used up to three times the geostatistical range. The
estimate was validated by visual comparison of samples and
estimation block grade by domain, moving window plots, and global
grade comparisons. The 2018 bulk sampling program was also used to
validate sections of the oxide mineralization (refer to the
Company’s news release dated February 20, 2019). Indicated Mineral
Resources were classified based on passes one and two, and Inferred
Mineral Resources classified based on pass three. As well as search
passes, resources were also classified on consideration of sample
data quality, mix of different sample types, and quantity and
quality of SG data. The qualified person (as defined in National
Instrument 43-101 Standards of Disclosure for Mineral Projects
published by the Canadian Securities Administrators (“NI
43-101”)) has applied the principles of reasonable
prospects of eventual economic extraction. Geostatistical analysis
was undertaken using Snowden Supervisor [v8.11.0] software and
estimation was undertaken in Datamine Studio RM [v1.4.175]
software.
The Mineral Resource estimation process was peer
reviewed by Mr. Ian Glacken FAusIMM(CP), a Director and Principal
of Optiro Pty Ltd. Optiro have endorsed the estimation approach and
classification.
Mineral Resources are not Mineral Reserves and
do not have demonstrated economic viability; it is uncertain if
applying economic modifying factors will convert Measured and
Indicated Mineral Resources to Mineral Reserves. The estimate of
Mineral Resources may be materially affected by environmental,
permitting, legal, title, taxation, socio-political, marketing, or
other relevant issues, however, no issues are known at this time.
The quantity and grade of reported Inferred Mineral Resources in
this estimation are uncertain in nature and there has been
insufficient exploration to define these Inferred Mineral Resources
as an Indicated or Measured Mineral Resource and it is uncertain if
further exploration will result in upgrading them to an Indicated
or Measured Mineral Resource category. The Mineral Resources in
this news release were estimated using current Canadian Institute
of Mining, Metallurgy and Petroleum (CIM) standards, definitions
and guidelines.
Dr. Simon C. Dominy, FAusIMM (CPGeo) has
coordinated the 2019 Resource Estimate for the Beatons Creek
conglomerate gold project, and is independent of the Company for
purposes of NI 43-101. Dr. Dominy is a Qualified Person as defined
by NI 43-101.
Dr. Dominy is preparing a NI 43-101 technical
report in respect of the 2019 Resource Estimate, which the Company
is obligated under NI 43-101 to file on SEDAR within 45 days of the
date this news release was disseminated.
Metallurgical Test Work on Fresh
Mineralization
Three (3) PQ diamond drill holes (BCMET18-021,
BCMET18-022, BCMET18-023) were drilled for metallurgical testwork
within Fresh mineralization. These holes each intersected two (2)
mineralized horizons within the Fresh zone (M1 and M2 reefs).
Whole core was taken for each of the six
intersections and subjected to non-destructive head grade assay by
PhotonAssay, followed by comminution testwork. The three
intersections of each reef were then blended to form two approx. 60
kg composites for M1 and M2. These were each subjected to the
three-stage gravity recoverable gold test (the so-called “Laplante”
test) to determine the GRG of the composites. Leach testwork on the
GRG residues is currently being completed.
The result of the GRG testwork was a 95% GRG
recovery for the M1 composite (head grade 5.6 g/t Au) and 89% GRG
recovery for the M2 composite (head grade 4.6 g/t
Au).
All metallurgical testwork was undertaken at
Metallurgy Pty Ltd, Perth, Australia. PhotoAssay analysis was
undertaken at MinAnalytical Pty Ltd, Perth, Australia. All testwork
and analysis was supported by a QAQC programme including process
documentation, blanks, barren flushes and CRMs (where
appropriate).
Dr. Quinton Hennigh (P.Geo.) 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, Chairman, and a director of Novo
Resources Corp.
About Novo Resources Corp.
Novo’s focus is to explore and develop gold
projects in the Pilbara region of Western Australia, and Novo has
built up a significant land package covering approximately 12,000
sq km. For more information, please contact Leo Karabelas at
+1416-543-3120 or e-mail leo@novoresources.com
On Behalf of the Board of Directors,
Novo Resources Corp.
“Quinton
Hennigh”
Quinton Hennigh
Chairman and President
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
Forward-looking information
Some statements in this news release contain
forward-looking information (within the meaning of Canadian
securities legislation) including, without limitation, the
estimation of Mineral Resources at the Company’s Beatons Creek
project. These statements address future events and conditions and,
as such, involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the statements.
Such factors include, without limitation, customary risks of the
resource industry and risks and uncertainties inherent to mineral
resource estimates.
Cautionary Note to U.S. Readers Regarding Estimates of
Inferred, Indicated and Measured Resources
This news release uses the term "inferred
mineral resources", "indicated mineral resources" and "measured
mineral resources". We caution U.S. investors that while these
terms are recognized and required by Canadian regulations, they are
not recognized by the U.S. Securities and Exchange Commission (the
“SEC”). "Inferred mineral resources" have a great
amount of uncertainty as to their existence, and great uncertainty
as to their economic and legal feasibility. It cannot be assumed
that all or any part of an "inferred mineral resource" will ever be
upgraded to a higher category. Under Canadian rules, estimates of
"inferred mineral resources" may not form the basis of a
feasibility study or prefeasibility studies. U.S. investors
are cautioned not to assume that any part or all of an “inferred
mineral resource” exists or is economically or legally
mineable. The terms "indicated mineral resources"
and "measured mineral resources" are not defined under SEC Industry
Guide 7 and are not normally permitted to be used in documents
filed with the SEC. U.S. investors are cautioned not to
assume that any part or all of mineral deposits in these categories
will ever be converted into SEC Industry Guide 7
reserves.
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