Novo Resources Corp T.NVO

Nullagine Gold Project Production Update

[Mineshack]

Nullagine Gold Project Production Update

KEY POINTS
 

• No lost time injuries at the Beatons Creek conglomerate gold project through Q3 2021 (“ Beatons Creek ”)
• Minimal COVID-19 pandemic-related operational disruptions
• Gold production of 18,144 oz Au in Q3 2021 (vs 14,890 oz Au in Q2 2021)
  • Mining and milling targeted rates achieved
  • Head grades have been lower than forecast due to previous reliance on wide-spaced grade control drilling which results in lower accuracy of the modelled Beatons Creek oxide mineral resource
  • Higher mining dilution associated with the more complex mining areas of Beatons Creek also a contributing factor
  • Continued progression of closer spaced grade control drilling combined with rapid assay turnaround is providing more certainty for forecasting Beatons Creek oxide mineralization grade, with the backlog of assays being mostly resolved through Q3 2021
• Commencement of oxide mining study, focused on further optimizing production and profitability of mining of the Beatons Creek oxide resource
• Batch test processing of Beatons Creek fresh mineralization confirmed processing throughputs and recovery with good grade prediction
• Strong financial position
  • Q3 2021 revenue of C$43 million (A$45.8 million) from the sale of 18,753 oz Au at an average realized gold price of A$2,483
  • Quarter-end cash balance of C$44.1 million
  • Investment portfolio fair value of approximately C$135 million 1

Nullagine Gold Project Production Update

 

[ValuePro]

In summary, production rose 22 percent quarter to quarter. 

[Dormie18]

Many paragraphs yield one data point. They continue to leave too many unanswered questions. Alas, we wait for their 3Q report with no urgency to invest yet.

[roberto146]

Looks like 1.25 gm/tonne? 18,144 oz for 451,000 tonnes. I still think they should sell some of that NFG and get rid of the debt. It's a big hit every month.  The last time I thought this NFG was about 10 bucks.

[Harmoneca]

This post has been removed in accordance with Community Policy

[ValuePro]

"The Q3 2021 head grade was 1.34 g/t Au, a slight increase from a Q2 2021 head grade of 1.30 g/t Au 2 ."

[Harmoneca]

This post has been removed in accordance with Community Policy

[rob1237]

Grade consistency is the problem...and it will always be this problem. 

[BetontheFed1]

They been running for 7 months now and the grade is averaging 1.32 gpt.  What gives?  I thought the average grade was supposed to be closer to 2.5 gpt.  Maybe the mineral estimates are garbage.

[Harmoneca]

This post has been removed in accordance with Community Policy

[Rainman1]

May I humbly ask you or anybody whether Novo's mining operation is viable/profitable at an average grade of  1.3gmt? What is their cost per ton?

[GoldenEra]

This post has been removed in accordance with Community Policy

[DuellaDemill]

This post has been removed in accordance with Community Policy

[Rainman1]

You obviously can't answer my simple question H.

[Harmoneca]

This post has been removed in accordance with Community Policy

[Rainman1]

Is that Novo's AISC? What is your source for that number?

[Rainman1]

Is that Novo;s AISC? What is your source for that number?

[DuellaDemill]

This post has been removed in accordance with Community Policy

[Rainman1]

Wow you are name calling now? what is Novo's AISC? You probably don't know.

[DuellaDemill]

This post has been removed in accordance with Community Policy

[Mineshack]

Rainman1.May I respond to your question also with a humble approach. I think it depends on how much of the operations you want to include as a measure against cash to arrive at a cost estimate. Novo is both a mining/production company and an exploration business. If we include all of Novo's activities in the calculation, then it seems reasonable to divide the Quarter 3 Cash Position loss of

[Rainman1]

Thank you Mineshack;  In the long run, won't ongoing viability of Novo's Pilbura prospect depend on the value of gold extracted less extraction costs? It would be nice to know what Novo's processing cost per ton is. Do you or anyone else know this number? Your help is appreciated.

[DuellaDemill]

This post has been removed in accordance with Community Policy

[DuellaDemill]

This post has been removed in accordance with Community Policy