Novo Resources (TSXV:NVO)
Historical Stock Chart
From May 2020 to Jul 2020
Novo Resources Corp. (“Novo” or the “Company”) (TSX-V: NVO; OTCQX: NSRPF) is pleased to announce it has recommenced its 2020 exploration program at its Egina gold project and quickly identified another broad gold-bearing swale at Paradise.
Recommencement of 2020 field program
- Following a self-imposed isolation period due to COVID 19, Novo has recommenced its 2020 exploration program at its Egina gold project. The Company has implemented work and hygiene protocols to ensure a safe workplace for its field staff. Its Perth head office has reopened on a managed, lower-density basis.
Discovery of new gold-bearing swale
- Novo has identified another gold-bearing channel, or swale, in an area southwest of the Paradise prospect. This swale measures at least 750 m wide, is open to the southwest, and brings the total number of swales discovered in this area to three (Figure 1). Identification of gold-bearing gravels comes from processing approximately 1 tonne bulk samples using Novo’s mobile alluvial Knudson (“MAK”) test plant. Gold particle counts from MAK samples collected in this new swale, S3, range up to 210 per tonne, the highest yet seen in this area. Gold-bearing gravels were found at Paradise earlier this year, and the Company announced discovery of two broad gold-bearing swales, S1 and S2, last month (please refer to the Company’s news releases dated April 16, 2020 and February 13, 2020).
- Novo plans to undertake bulk sampling of gravels from the newly discovered Paradise swales during the 2020 field season. Novo also plans to expand the heritage survey footprint in this area once the Kariyarra Aboriginal Group has deemed it safe to come out of quarantine.
- In addition to the Paradise area, Novo has approximately 20 high priority target areas it plans to explore utilizing MAK sampling in 2020. The goal of this work will be to demonstrate proof of concept that the Egina terrace has potential to host an extensive, shallow gold-bearing gravel deposit.
Complete data from 2019 large bulk samples
- In February, before cessation of work at Egina due to COVID 19, Novo completed processing of two large bulk samples from a test area within the Egina mining lease (please refer to Novo’s news release dated February 13, 2020). All gold assay data has returned from these samples (Figure 2). Bulk samples from trenches 6A and 6B (Figure 3), both collected from the general trend of the swale and swale margin corridor, yielded a total of 592.6 grams of gold from 413.6 cubic metres and 393.8 grams of gold from 763.2 cubic metres, respectively (please refer to table below). Collectively, this totals 986.4 grams of gold from 1,176.8 cubic metres of gravel, or 0.84 grams gold per cubic metre. Conventional alluvial gold projects commonly display grades of 0.2-0.3 grams gold per cubic metre.
- Because of the extensive nature of gold-bearing gravel mineralization at Egina, Novo views environmental rehabilitation of disturbed areas as a critical component to gaining acceptance for potential future commercial operations. Figure 4 and figure 5 depict recent examples of Novo’s environmental stewardship whilst undertaking exploration activities, each area displaying impressive rates of vegetative regrowth. Novo’s in-house environmental team has used best practices including stockpiling and rapid re-establishment of topsoil and regrowth after the wet season. Data collected from these rehabilitation efforts will help underpin Novo’s case that this style of ground disturbance can be managed such as to restore the land to its original state.
“We are very happy to get back to work at Egina,” commented Quinton Hennigh, President, Chairman, and a Director of Novo. “We are very excited by the continued exploration success with the immediate discovery of yet another broad gold-bearing swale at Paradise. Our MAK sampling approach clearly delivers quick results showing us where gold-enriched gravels are situated, and we plan to aggressively use this technique to test a multitude of targets across the terrace this field season. As we identify these gold-bearing gravels, we plan to follow up MAK sampling with bulk sampling and processing that will allow us to assess gold grades of these gravels. Bulk sampling has clearly demonstrated robust grades of gravels in the swale within the 2019 test area, and we aim to similarly evaluate grades of gravels in these new areas. Also exciting are the spectacular results of our environmental rehabilitation efforts. Our in-house team has done a great job showing that we can reclaim disturbed areas to their former state, a critical step for Novo in its efforts to move Egina toward a commercial operation.”
Large-Scale Bulk Sample Results Table
| || ||Coarse Gold||Fine Gold ||Total Gold|
|Large Scale Bulk Sample*||Volume (cubic m)||Gold Nuggets Metal Detected While Excavating Bulk Sample (grams)A||Gold Nuggets Metal Detected in plus 5 mm Oversize Material (grams)A||Gold Nuggets from Sluice plus 1 mm (grams)A||Gold Nuggets Recovered by IGR 3000 plus 1 mm (grams)A||Total Coarse Gold Nuggets, plus 1 mm (grams)A||Gold in Shaker Table Concentrate (grams)B||Gold in Shaker Table Tailings (grams)C||Gold in IGR 3000 Tailings (grams)C||Total Fine Gold, sub 1 mm (grams)||Total Gold from Coarse and Fine Fractions (grams)|
Notes:A – Gold purity has been assessed at Egina and falls within a range of 89% - 95%. B – Based on whole sample assays.C – Back-calculated from assayed sub-samples.
*These bulk samples are from the swale and swale margins and are not necessarily representative of mineralization over the entire project area.
Description of bulk sampling process:
Large-scale bulk samples discussed in this news release were collected from trenches approximately 4 metres wide under the supervision of Novo personnel. Trench 19EGTR006A extends for 52 metres, and trench 19EGTR006B is 86 metres in length. Trench depth varies from about 1 - 1.5 metres. Sandy soil overburden was stripped prior to gravel extraction. Some underlying bedrock material was excavated along with gold-bearing gravels to ensure capture of gold on the bedrock interface. Each sample was excavated in lifts approximately 20-30 cm thick. Novo personnel detected every lift for gold nuggets prior to removal, and the location and weight of each nugget was recorded without limitation prior to being securely stored. Trench bulk sample gravel material of the entire excavated trench length is transported to Novo’s Station Peak camp and processed through the Company’s IGR 3000 gravity gold plant. Various concentrates and tailings from the IGR 3000 plant are currently being analyzed to evaluate fine grain gold. Once these results have returned, the fine gold contribution will be added to the coarse gold tally. X-ray fluorescence analysis of nuggets indicates purities ranging from 89-95%. Densities of gravels vary widely generally ranging between about 1.4-2.1 tonnes per cubic metre. Unlike hard rock gold deposits, alluvial gold deposit grades are commonly reported in grams per cubic metres.
Description of MAK sampling process:
MAK samples are collected from pits spaced approximately 50 metres apart across target areas. Pits are dug by track hoe and range up to 3 metres depth. Targeted sample size is approximately one tonne. Samples are placed in wooden crates lined with bulka bags and transported to Novo’s Station Peak camp where they are processed through a mobile alluvial Knudsen centrifugal concentrator. Concentrates are panned down to reveal gold for point counting and further study.
Dr. Quinton Hennigh, P. Geo., the Company’s President, Chairman, and a Director, and a qualified person as defined by National Instrument 43-101, has approved the technical contents of this news release.
About Novo Resources Corp.
Novo’s focus is primarily to explore and develop gold projects in the Pilbara region of Western Australia, and Novo has built up a significant land package covering approximately 13,000 square kilometres with varying ownership interests. 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 firstname.lastname@example.org
On Behalf of the Board of Directors,
Novo Resources Corp.
“Quinton Hennigh”Quinton Hennigh President and Chairman
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, statements as to planned exploration activities. 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 mineral resource industry as well as the performance of services by third parties.
PDFs accompanying this announcement are available at: