News. Novo updates progress.2015-11-19 13:13 ET - News Release
Dr. Quinton Hennigh reports
NOVO UPDATES PROGRESS AT ITS BEATONS CREEK GOLD PROJECT - PROVIDES OVERVIEW OF ITS NEW BLUE SPEC GOLD-ANTIMONY PROJECT
Novo Resources Corp. has provided an update of progress at its Beatons Creek gold project and an overview of its newly acquired Blue Spec gold-antimony project, both located in Western Australia.
Progress at Beatons Creek
Novo is aggressively evaluating the potential economics of an open cast/gravity-recovery mining scenario for its Beatons Creek gold project. This work will form the basis for an upcoming preliminary economic assessment that will examine the viability of mining shallow, oxide-only resources documented in the Company's recently released report titled: "NI 43-101 Technical Resource Report, Beatons Creek Gold Project, Pilbara Region, Australia" (this report can be accessed on SEDAR or on the Company's website by clicking the following link: https://novoresources.com/pdf/NI-43-101-Technical-Report.pdf).
In the Company's news release dated October 14, 2015, Novo discussed favorable metallurgical results indicating good gold recoveries are achievable with a simple, gravity-only mill. Soon after receiving this information, Novo began examining options and costs for constructing a new, "turn-key" mill for the Beatons Creek project. Two recent findings have caused Novo to reconsider this approach in favor of looking at potentially much cheaper alternatives.
Firstly, Novo recently contracted an engineer to inspect components comprising its newly acquired Blue Spec gold mill, part of the Blue Spec project. Althought this mill dates to the mid-1980's, the jaw crusher and cone crusher were determined to be in good condition and potentially compatible with the Beatons Creek milling scenario. Both have adequate throughput to meet the scope of the Beatons Creek project.
Second, due to the downturn in the mining sector, Novo has identified numerous new and used mill components across Western Australia that are available at modest prices. Novo has been looking at a spectrum of equipment potentially compatible with the Beatons Creek milling scenario.
As a result of these additional investigations, completion of designing and costing a mill, a critical component of the upcoming economic study, will be delayed until early 2016. The Company deems this added work and time as justifiable given the potential savings for the project. Work on other facets of the economic study are proceeding as planned.
Blue Spec Gold-Antimony Project Overview
The Blue Spec gold-antimony project encompasses approximately 125 sq km and is situated approximately 20 km due east of Novo's Beatons Creek Project. Gold mineralization is of orogenic lode vein style and is hosted by an east-west trending shear zone extending approximately 20 km along the length of the property. A significant amount of stibnite, a Sb-sulfide mineral, accompanies high-grade gold mineralization. This style of gold mineralization is present elsewhere in Australia including at the Costerfield mine in Victoria State (operated by Madalay Resources Ltd.).
High grade shoots at the Blue Spec and Gold Spec mines, host indicated resources of 151,000 tonnes at 21.7 gpt Au (105,300 oz) and 1.7% Sb and inferred resources of 264,000 tonnes at 13.3 gpt Au (112,600 oz) and 1.0% Sb. This historical estimate, disclosed in Northwest's news release of September 30, 2013 and in the mineral resource statement issued by Northwest on the same date (the "Northwest Disclosure Documents"), are stated to have been reported in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves (2012 JORC Code), which are consistent with sections 1.2 and 1.3 of NI 43-101. For the key assumptions, parameters, and methods used to prepare these estimates, please refer to the Northwest Disclosure Documents which are available on Northwest's website (www.nw-resources.com.au). These are the most updated estimates and data available regarding the Blue Spec and Gold Spec deposits and, as such, no work needs to be done at this point in time to upgrade or verify the estimates. Novo is unaware of the existence of any technical report prepared in connection with the technical information contained in the Northwest Disclosure Documents. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. Novo is not treating the historical estimate as current mineral resources or mineral reserves.
Since completing the Blue Spec acquisition on October 5, 2015, Novo has undertaken a comprehensive review of the project with a focus on exploration potential. Findings from this study conclude:
--Drilling has not closed off mineralized shoots at either of the historic Blue Spec and Golden Spec mines (see Figures 1 and 2 below). In fact, each of these shoots is open to the east, west and at depth. Importantly, the 900 meter gap between these two mines (Golden Spec to the west and Blue Spec to the east) remains largely untested below depths of around 100 meters. See the table below for historic drill intercepts from multiple zones across the project including the Blue Spec and Golden Spec zones.
--Splay zones coming off of the Blue Spec and Golden Spec veins have not been fully tested. Although drill holes targeting the main veins were largely successful at hitting those structures, many of these holes stopped short of testing nearby, sub-parallel splays. Also, some holes appear to have been selectively assayed, so it is also possible that core from splay structures was never sampled.
--Near surface mineralization is evident in numerous locations along the 20 km strike of the Blue Spec shear zone. Numerous shallow (<150 m depth) drill intercepts from the Green Spec, Red Spec and Orange Spec zones reported in the table below illustrate this. In addition to shallow potential, it is worth noting that these three zones are also open at depth.
--Four historic surface rock chip samples taken from outcrop and subcrop in areas ranging between 600 and 1,300 m west of the Golden Spec deposit display high grades (from east to west: 86.9 gpt Au w/ no Sb assay; 78.3 gpt Au/0.67% Sb; 143.8 gpt Au/0.56% Sb; 22.5 gpt Au/1.21% Sb). These samples suggest high-grade vein targets may present in this area.
--Previous rock chip sampling efforts appear to have lacked focus. Through mapping, Novo has identified structural zones and has undertaken detailed sampling. Results are expected in early 2016.
Based on the conclusions of this initial review, Novo sees considerable potential for expanding known zones and discovering new high-grade shoots. "We are quite excited by the prospect of potentially realizing significant cost savings for mill components for our Beatons Creek gold project," commented Dr. Quinton Hennigh, President, CEO and director of Novo Resources Corp.
"We are similarly excited about recognizing significant upside for expanding gold zones and discovering new high-grade shoots at our newly acquired Blue Spec project."
Quinton Hennigh (Ph.D., P.Geo.) is the Qualified Person pursuant to National Instrument 43-101 responsible for, and having reviewed and approved, the technical information contained in this news release. Dr. Hennigh is President, CEO and a Director of Novo Resources Corporation.
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