Novo Resources Corp. (
“Novo” or
the
“Company”) (TSX: NVO, NVO.WT & NVO.WT.A)
(OTCQX: NSRPF) provides an update on its mechanical sorting
program.
Phase Two Trial
The Phase Two mechanical sorting trial has been
completed, with samples from Comet Well, Purdy’s Reward, and Egina
processed through the Sorter which was assembled adjacent to the
Golden Eagle processing plant at the Nullagine Gold Project
(“Nullagine”).
The Phase Two trials represent a culmination of
four years of test work conducted by Novo to determine the
amenability of mechanical sorting across its 11,000 sq km of
Pilbara tenure in Western Australia.
The Phase Two trial involved thirty-three
samples, primarily from the Comet Well and Purdy’s Reward
tenements, which were processed though the Sorter. The Comet Well
and Purdy’s Reward samples were taken from areas peripheral to the
main mineralized zone representing lower-grade tenor material and
contained approximately 145 tonnes of bulk sample material.
Concentrates from each sample were collected in their entirety and
the tails or ‘rejects’ stream was sub-sampled and sent for assay
via Chrysos™ PhotonAssay.
The Phase Two trial confirmed that the mass pull
to concentrate averaged 1.05% for lower-grade tenor material, which
aligns with previously collected results from higher-grade lab
scale test work. Preliminary Phase Two results are outlined in
Table 1 below.
Phase Three Trial
Following completion of the Phase Two trial, the
Sorter was scheduled to be transported to Comet Well for the Phase
Three trial, which is designed to process up to 20,000 tonnes of
potentially mineralized material from the Comet Well and Purdy’s
Reward projects.
Detailed project planning has confirmed that the
expected cost of the Phase Three trial has significantly increased
from earlier estimates. Work completed as part of the project plan
development confirms the nuggety nature of the Comet Well and
Purdy’s Reward mineralization and the difficulty in confirming gold
inventory. The use of the Sorter to complete processing of a test
parcel of potentially mineralized material remains the most
appropriate means of determining potential gold deposition and
project economics, and it is expected that the Phase Three trial
will assist with establishing a modest mineral inventory for the
Comet Well and Purdy’s Reward projects.
Following the production pause at Beatons Creek1
and requirement to direct immediate attention towards development
of the Fresh mineral resource, along with exploration across high
potential Pilbara-wide targets in the short-to-medium term, the
Novo Board of Directors has made the decision to defer the Phase
Three trial at Comet Well until the first half of CY2023. Novo’s
Sorter project team has been reassigned to assist with the Beatons
Creek Fresh feasibility study2.
Novo is dedicated to prioritizing resources to
deliver key workstreams at the Beatons Creek Fresh mineral resource
including completion of the Feasibility Study2, upgrading the
current Fresh mineral resource, and continued resource and
extensional drilling to expand potential for life-of-mine
operations. Additionally, Novo is also focused on aggressively
advancing the high-potential exploration targets at Becher for gold
in the Egina district and at Purdy’s North for nickel in the West
Pilbara district.
Commenting on the mechanical sorting update,
Executive Co-Chairman, acting Chief Executive Officer, and director
Mike Spreadborough said, “While we are disappointed to defer the
Phase Three trial at Comet Well, all work to date shows that
innovative use of sorting technology for the Comet Well and Purdy’s
Reward projects is expected to generate positive results. Our
immediate focus is on delivering shareholder value through the plan
we outlined for Phase Two operations at Beatons Creek.”
“We have a very busy second half planned and
once we complete those various workstreams, we will re-consider the
timing of the Phase Three trial at Comet Well and make a decision
on the path forward.”
SAMPLE PREPARATION, ASSAYING AND QUALITY
ASSURANCE/QUALITY CONTROL
Concentrate samples from the Sorter were
collected in their entirety. The tails or ‘rejects’ stream was
sub-sampled at regular intervals manually. This was achieved by
placing a container through the full width of the sample stream as
it transferred by gravity from one conveyor belt to another. A
composite of approximately 20kg from the ‘rejects’ stream was
collected across the sample run. All samples and sub-samples were
then weighed (wet), recorded, and submitted for transport to
Intertek’s mineral laboratory in Maddington, Western Australia.
On sample receipt at Intertek Maddington, all
samples and sub-samples were dried for 24 hours. They were then fed
through a Smart Crusher, where their material particle size was
reduced to P90 -3 mm. The crushed concentrate and ‘rejects’ samples
were then placed into Chrysos™ PhotonAssay pots. The pots were
then assayed in their entirety by Chrysos™ PhotonAssay.
Chrysos™ PhotonAssay is a non-destructive method, based on
technology that measures gold concentration via X-ray excitation to
produce gamma rays. Intertek Chrysos™ PhotonAssay is NATA
accredited (3244) via ISO/IEC 17025 (2017) for method PA W0002.
Program design, quality assurance/quality control, and
interpretation of results is performed by qualified persons
employing quality control (“QC”) analysis
consistent with industry best practices. Chrysos™ PhotonAssay
certified CRMs and blanks are included at a rate of 1 in 40 samples
for QC purposes by Intertek, the results of which are provided to
Novo. Novo does not know of any factors of sampling that could
materially affect the accuracy or reliability of the assay data
disclosed.
All data was verified without limitation by a
qualified person by reviewing analytical procedures undertaken.
QP STATEMENT
Dr. Quinton Hennigh (P.Geo.) is the qualified
person, as defined under National Instrument 43-101 Standards of
Disclosure for Mineral Projects, responsible for, and having
reviewed and approved, the technical information contained in this
news release. Dr. Hennigh is the non-executive co-chairman and a
director of Novo.
CAUTIONARY STATEMENT
The decision by the Company to produce at the
Beatons Creek Project was not based on a feasibility study of
mineral reserves demonstrating economic and technical viability
and, as a result, there is an increased uncertainty of achieving
any particular level of recovery of minerals or the cost of such
recovery, including increased risks associated with developing a
commercially mineable deposit. Production has not achieved forecast
to date. Historically, such projects have a much higher risk of
economic and technical failure. There is no guarantee that
anticipated production costs will be achieved. Failure to achieve
the anticipated production costs would have a material adverse
impact on the Company’s cash flow and future profitability.
The Company cautions that its declaration of
commercial production effective October 1, 20213 only indicates
that Beatons Creek was operating at anticipated and sustainable
levels and it does not indicate that economic results will be
realized.
ABOUT NOVO
Novo operates its flagship Beatons Creek gold
project while exploring and developing its prospective land package
covering approximately 11,000 square kilometres in the Pilbara
region of Western Australia. In addition to the Company’s primary
focus, Novo seeks to leverage its internal geological expertise to
deliver value-accretive opportunities to its shareholders. For more
information, please contact Leo Karabelas at (416) 543-3120 or
e-mail leo@novoresources.com.
On Behalf of the Board of Directors,
Novo Resources Corp.
“Michael Spreadborough”
Michael Spreadborough
Executive Co-Chairman and Acting CEO
Forward-looking information
Some statements in this news release contain
forward-looking information (within the meaning of Canadian
securities legislation) including, without limitation, that Phase
Three trials at Comet Well will begin in the first half of CY2023,
that the Beatons Creek Fresh feasibility study and upgrade of the
current Beatons Creek Fresh mineral resource and continued resource
and extensional drilling is expected to expand life-of-mine
operations, that the use of the Sorter to complete processing of a
test parcel of potentially mineralized material remains the most
appropriate means of determining potential gold deposition and
project economics, that it is expected that the Phase Three trial
will assist with establishing a modest mineral inventory for the
Comet Well and Purdy’s Reward projects, and that funds will be
allocated to aggressively explore key sulphide and oxide prospects
along the Mosquito Creek formation to extend operations at
Nullagine beyond Beatons Creek. 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 the risk
factors identified in Novo’s management’s discussion and analysis
for the three-month period ended March 31, 2022, which is available
under Novo’s profile on SEDAR at www.sedar.com. Forward-looking
statements speak only as of the date those statements are made.
Except as required by applicable law, Novo assumes no obligation to
update or to publicly announce the results of any change to any
forward-looking statement contained or incorporated by reference
herein to reflect actual results, future events or developments,
changes in assumptions or changes in other factors affecting the
forward-looking statements. If Novo updates any forward-looking
statement(s), no inference should be drawn that the Company will
make additional updates with respect to those or other
forward-looking statements.
Table 1 shows the assay and
mass pull data from the first ten samples of the Phase Two trial,
confirming strong upgrade ratios from low grade material can be
achieved through the Sorter in a single pass.
Sample ID |
Total SampleFeed Mass (t) |
Con. Grade(Au, g/t) |
Rejects Grade(Au, g/t) |
Total AuRecovery (%) |
Mass Pull toconcentrate, % |
Head Grade(Au, g/t) |
UpgradeRatio |
P1 |
2.1910 |
1.1375 |
0.0009 |
86% |
0.49% |
0.0065 |
174 |
P2 |
2.6260 |
2.2372 |
0.0009 |
99% |
6.05% |
0.1363 |
16 |
P3 |
2.8680 |
0.0533 |
0.0008 |
42% |
1.08% |
0.0014 |
39 |
P4 |
1.5370 |
2.1603 |
0.0016 |
95% |
1.30% |
0.0296 |
73 |
P5 |
4.6220 |
0.3960 |
0.0018 |
73% |
1.16% |
0.0064 |
62 |
P6 |
0.4440 |
6.3822 |
0.0215 |
83% |
1.60% |
0.1232 |
52 |
P7 |
6.6720 |
3.5877 |
0.0004 |
98% |
0.69% |
0.0252 |
142 |
P8 |
5.1750 |
0.8324 |
0.0005 |
92% |
0.67% |
0.0060 |
138 |
P9 |
5.2090 |
0.0661 |
0.0005 |
30% |
0.34% |
0.0008 |
86 |
P10 |
4.2790 |
0.0476 |
0.0005 |
52% |
1.06% |
0.0010 |
50 |
___________________1 Refer to the Company’s news release dated
June 14, 2022.2 Refer to the Company’s news release dated June 14,
2022.3 Refer to the Company’s news release dated October 12,
2021.
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