News Press Releases

Novo Commences Processing at Beatons Creek

T.NVO | September 6, 2016

(via Thenewswire.ca)

VANCOUVER, BC / TheNewswire / September 6, 2016 - Novo Resources Corp. (“Novo” or the “Company”) (TSX-V: NVO; OTCQX: NSRPF) is pleased to announce commencement of processing of its recently collected 30,000 tonne bulk sample at its 100% controlled Beatons Creek gold project, Western Australia. Processing is expected to take approximately two to three months.

Results of Bulk Sampling

Over a three week period beginning in late July, Novo extracted approximately 30,000 tonnes of mineralized conglomerate from a pit in the central part of the Beatons Creek oxide resource. Most of the material came from one conglomerate horizon (“reef”); however, about 500 tonnes were extracted from a second reef about two meters stratigraphically below. Although the initial plan was to extract 10,000 tonnes of reef from each of three pits, it was recognized that grade blocks in the reef that was mined displayed a similar range, 1.5-5.0 gpt, to that expected from the three pits, 1.9-5.0 gpt. Therefore, Novo considers the material that was extracted to be similarly representative. By taking sample from one pit, extraction took three weeks rather than the planned six, and costs were significantly reduced.

Results of trial bulk sampling were very encouraging. Findings include the following:

--Both waste and reef, proved to be “free-digging.” No drilling and blasting was needed. Material was extracted utilizing a D9 bulldozer and 80 tonne excavator and hauled utilizing 40 tonne articulated trucks (see Figures 1 and 2 below).
--Nearly 75,000 tonnes of waste and 30,000 tonnes of reef was moved, a ratio of 2.5-to-1. Given the large size, geometry and position of the pit within the resource area, Novo considers this a reasonable trial of potential future extraction of reef at Beatons Creek. Cost of delivering each tonne of reef to the run-of-mine (“ROM”) pad came in less than AU$10/tonne inclusive of site and road preparation, stripping, and extraction of reef.
--The top and bottom of the reef horizon proved to be readily visually identifiable based on large boulder size and abundance of oxidized detrital (“buckshot”) pyrite (see Figures 3 and 4 below). Exploratory trenches were dug into the pit floor as waste was removed allowing for a precise determination of the top and bottom of the reef while mining.
--The excavator operator was readily able to feel the contrast between overlying waste material and the top of the boulder-rich reef while stripping. While excavating reef, similar contrast was noted with the underlying sandstone proving much softer than the reef. These observations are very important because it indicates that excavator operators can use hardness as a guide for future mining.
--Minimal (<10%) dilution was incurred.
--The reef proved to be continuous and predictable across the entire bench. Thickness ranged from about 0.4-2.0 meters (see Figure 5 below). In places, bowl-like depressions were encountered at the base of the reef where it would rapidly thicken.
--Locally, the reef appeared to be comprised of two or three closely stacked sub-reefs. Interbedded sandstone partings up to 0.5 m thick sometimes occurred between such sub-reefs. A bright white sandstone marked the base of the reef making footwall determination easy (see Figure 6 below).
--No offsetting faults were encountered removing concern that the reef might be dislocated and difficult to follow.
--Reef appeared consistently mineralized with similar amounts of buckshot pyrite across the entire bench. Small samples were routinely collected, crushed and panned, all yielding visible gold grains. A determination of gold grades will come from data gathered during trial processing.

“We are very pleased with the results from our bulk sampling exercise,” commented Dr. Quinton Hennigh, President, CEO and director of Novo. “We were able to readily identify and selectively extract targeted gold-bearing reef material with minimal dilution. All aspects of this exercise indicate we can extract conglomerate cheaply and effectively.”

Bulk Sample Processing

Over the three weeks since receiving approvals to commence processing on August 10, 2016, Novo has installed and begun operating its trial processing equipment. Processing is expected to take two to three months.

As discussed in the Company’s news release dated April 13, 2016, Novo is utilizing a state-of-the-art Rubble Master RM100GO! horizontal impact crusher to crush mineralized conglomerate before gravity gold extraction. The advantage of this crusher is that it can take raw material and crush to sub-3 mm size in one step (see Figure 7 below). Novo recognizes that further crushing will be required to achieve optimal liberation in any future commercial scale operation, but for the purposes of trial processing, the product produced by the RM100GO! is suitable to liberate coarse gold.

Crushed rock is fed by conveyor into Novo’s IGR3000 gravity plant (see the Company’s news release dated September 9, 2015 for further detail) where it is mixed with water in a rotating scrubber, screened, then fed into two Falcon centrifugal concentrators (see Figures 8 and 9 below). Discharge is captured in a newly built tailings pond. No chemicals are used in processing. Concentrates will be treated offsite in a secure location.

Samples of the crushed feed material as well as the tailings will be routinely collected to monitor grade and enable Novo to calculate head grades. Given that coarse gold is abundant, this data will be critical to reconciling with predicted grades. Given that processing will likely last into November, it will be near calendar year-end before all data has been returned and Novo can present results to the public.

Alluvial Processing

Novo is seeking permits to extract 30,000 tonnes of alluvial material from various creeks and drainages across the Beatons Creek property. Pending permit approval, Novo hopes to extract and treat this material following processing of the trial bulk sample. Novo thinks there could be appreciable gold in gravels found in many of the creeks draining away from exposed gold-bearing reefs and hopes to demonstrate this with such a batch test.

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 Director of Novo Resources Corp.

About Novo Resources Corp.

Novo’s focus is to evaluate, acquire and explore gold properties. Indirect subsidiaries of Novo hold a 100% interest in the Beatons Creek gold project, a 70% interest in properties surrounding Beatons Creek and Marble Bar, a 100% interest in the Blue Spec gold-antimony project, and options covering approximately 400 square km over the Mosquito Creek Basin, all in the Pilbara region, Western Australia. 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.

“Quinton Hennigh”

Quinton Hennigh

CEO and President

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 the expected receipt of results from various sampling and processing activities. Forward-looking 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 exploration industry as well as Novo having sufficient cash to fund the planned processing activities.

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(Figure 1: Equipment used for bulk sampling at Beatons Creek. Both waste and mineralized material were found to be "free-digging" requiring no drilling and blasting. The excavator is removing waste above the targeted reef horizon.)

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(Figure 2: Free-digging mineralized conglomerate. The large boulders in front of the 80 tonne excavator are up to 1 m across.)

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(Figure 3: A 1.2 m thick section of mineralized conglomerate prior to mining. Note the large boulders scattered through the rock. Gold occurs in the matrix material between boulders.)

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(Figure 4: A large piece of mineralized gold-bearing matrix material. The round pits are left after oxidized pyrite clasts. These pits are a good visual guide to mineralization.)

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(Figure 5: Extracting the seam of mineralized conglomerate. At the right near the bulldozer, the seam is about 0.5 m thick. Under the excavator it is approximately 2 m thick. Although thickness varied as expected, this reef proved to be continuous and predictable. The excavator operator could readily discern the top and the bottom of the reef resulting in minimal dilution.)

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(Figure 6: Un-mined reef, left and white footwall sandstone, right. The footwall sandstone was easy to discern while mining.)

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(Figure 7: Rubble Master RM100GO! horizontal impact crusher. Raw material is fed into the top and sub-3 mm crushed product comes off the conveyor. This is the only crushing unit Novo is employing for test processing.)

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(Figure 8: Novo's newly constructed processing facility. Mineralized stockpile is at left. Crusher is at center left. IGR3000 gravity gold plant is center right. Crushed stockpiles are in the foreground.)

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