Novo Resources Corp T.NVO

Poor Jimbo

[BingoBucc]

jimbowie Using 2022 H1 production figures and numbers from the new MRE I calculate the following for the fresh ore only. The oxide is not worth mining at 1.3 gpt. Using the MRE projected 25% dilution, 5% of the gold not picked up during mining, and a 91% mill recovery rate, the out the door grade for fresh would be 1.7 gpt. The out the door grade for 2022 H1 was 1.09 gpt. Extrapolation of the improved out the door grade to cash costs and AISC incurred in H1 of 2022 results in Canadian cash cost per ounce of $1,479, Australian $1,618, and U.S. $1,164. Projected AISC costs per ounce of $1,879 C, $1,846 A, and $1,425 US. Current fresh tonnage would last about 16 months with mill operating at 1.6 million tons per year. I guess managements thinking is let's get enough tonnage worth mining at Beaton's to keep the mill running for 3 years, wait and see what the gold price does and see what the gov't does regarding permits before we start the plant up again. Mgmt has enough cash to operate until the end of 2023 before they have to start worrying about a cash raise. Wing and a prayer but still some hope.

Still hasnt figured out the game.



Bucco