VANCOUVER, B.C., Aug. 31, 2017 (GLOBE NEWSWIRE) -- Novo Resources Corp.
(“Novo” or the “Company”) (TSX-V:NVO) (OTCQX:NSRPF) is pleased to announce exploration plans for
its Karratha gold project located in the Pilbara region of Western Australia.
“With completion of property acquisitions now out of the way, Novo is eager to begin exploring at Karratha,”
commented Dr. Quinton Hennigh, President, Chairman, and a director of Novo Resources Corp. “In a very short time, we have developed
a carefully crafted analytical protocol to deal with coarse gold, secured a contract for large diameter reverse circulation
drilling, and filed critical exploration permits. We are currently developing plans to test hard rock trenchers as a means of
opening up trenches for bulk sampling. Lots of preparation is underway. Trenching and drilling will commence at the Purdy’s Reward
prospect where the exploration license has been granted and some exploration activities have already been permitted. Exploration
activities will extend to the adjoining Comet Well project and Novo’s wholly-owned ground once those tenements are granted and
exploration permits are approved. Karratha is a very exciting gold discovery, and Novo is ready to meet the challenge of exploring
it.”
Karratha Gold Project
Gold mineralization at Karratha is hosted by a sequence of conglomerate beds, fossil gravel horizons, ranging
from a few metres to approximately 20 metres thick comprising the base of a much thicker package of sedimentary and volcanic rocks
called the Fortescue Group. Rocks of the Fortescue Group were deposited between 2.78 and 2.63 years ago upon 3.0-3.7 billion
year old igneous and metamorphic rocks that make up the Pilbara craton, an ancient piece of Earth’s crust.
Over the past year, local metal detectorists have excavated gold nuggets originating from weathered conglomerate
along an eight-kilometre, southwest-trending corridor between the Purdy’s Reward prospect (please refer to the Company’s news
releases dated May 26 and August 15, 2017) and Comet Well (please refer to the Company’s news releases dated April 11,
June 26 and August 3, 2017). These gold-bearing conglomerates dip gently southeastward under cover at angles of between
2 and 20 degrees. The Company secured 100% control over approximately 7,000 sq km in areas along strike and down dip from Purdy’s
Reward and Comet Well through aggressive staking earlier this year. Novo believes that these gold-bearing conglomerates may
underlie significant areas within the greater Fortescue basin.
In the Company’s news release dated July 12, 2017, Novo discussed discovery of gold nuggets in a bulk sample
collected from a trench at the Purdy’s Reward prospect. Metallurgical test work conducted on this sample was discussed in the
Company’s news release issued August 8, 2017. The weighted average grade of two splits of this bulk sample was 67.08
gpt Au. Approximately 82% of the gold in this sample was determined to be coarse, mainly nuggets displaying several
interesting characteristics. These are commonly flattened with rounded edges giving them an appearance similar to watermelon
seeds. Most are coarse, +2 mm and are not attached to quartz or other minerals. Gold is of high purity, +96%, much
higher than the gold content of nuggets derived from basement-hosted lode gold deposits from the Pilbara region that commonly
display purities of 70-90%. Nuggets display crenulated surfaces thought derived from burial and compaction within a sandy
matrix.
In addition to coarse gold, this metallurgical test confirmed a significant fine-grained gold component is
present in these conglomerates. Such fine gold, if it is indeed disseminated throughout the conglomerates, could prove
important to help evaluate grade and continuity of this deposit.
Exploration Plans at Karratha
Due to the high profile of this unconventional yet exciting gold project, Novo plans to routinely provide
detailed information to the market about exploration planning, implementation, results and interpretation.
Assaying Methodology
Novo has recently worked with Nagrom Metallurgical Laboratory, Perth (“Nagrom”) to develop a system to analyze
bulk samples from future exploration at Karratha. Nagrom recently installed a Steinert sorting machine equivalent to that used for
the bulk sample test work discussed above, in preparation for testing Novo’s samples. Bulk sample processing and analysis
will be as follows:
- Bulk samples derived from trenches and large diameter reverse circulation (“RC”) drilling will be crushed to -60 mm (P100)
and dry screened at 10 mm and 2 mm.
- The +10 mm and 2-10 mm fractions will be fed through the Steinert XSS T sorting machine to generate a concentrate of rock
particles containing coarse gold (“sorted concentrate”) and tailings (“sorted tailings”). The sorted
concentrate will be crushed to -2mm (P100) and subjected to intense CN leaching and analysis. Tailings from intense CN
leaching will subjected to metallic screen fire assay to ensure no loss of gold. The gold content of the sorted
concentrate will be determined by mathematically combining the Au recovered by CN leaching with residual gold detected by
metallic screen fire assay.
- Sorted tailings will be crushed to -2 mm (P100) and recombined with any -2 mm material generated during initial
screening. A 30 kg split of -2 mm material will be taken and pulverized to -75 microns (P95). Three, 1 kg splits of
the pulverized material will be subjected to intensive CN leaching and analysis. A weighted average grade of these three
analyses will constitute the sorted tailings grade.
- A final bulk sample grade will be calculated by mathematically combining the sorted concentrate grade and the
sorted tailings grade.
Laboratory turn around for bulk samples is expected to be around 4-6 weeks.
Drilling
Novo envisions a two-pronged approach to drilling at Karratha. Scout diamond core drill holes will help
allow initial assessment of the depth and thickness of targeted gold-bearing conglomerates. Once target depth and thickness
have been determined, large diameter RC holes (17.5” diameter) will be drilled to collect bulk samples. Sampling will be done
on one-metre intervals through the targeted horizon. Novo has engaged FORACO International SA to undertake large diameter RC
drilling and is currently in discussions with various drill contractors for diamond core drilling.
Trenching
Novo plans to obtain geologic data and bulk samples through extensive trenching of the targeted conglomerate
horizon. Discussions are currently underway with contractors capable of excavating trenches using hard rock trenchers
designed to cut 2-3 metre deep slots for pipelines. Due to hard ground conditions, Novo is uncertain of the potential of
utilizing such a trencher, but plans to test one as soon as a contracting candidate has been chosen. Assuming this approach
proves viable, Novo plans to bulk sample the walls of trenches rather than sourcing bulk sample material from the trencher,
itself. Sample integrity is essential, and the material generated from the trencher is viewed as high-risk for cross
contamination of sample intervals. Should a hard rock trencher prove unviable, Novo plans to employ excavators with rock
breaking capabilities, a much slower and less precise alternative for trenching.
Permitting and Exploration Plans at Purdy’s Reward
Upon completion of definitive farm-in and joint venture agreements between Novo and Artemis Resources Limited
(“Artemis”), Novo was formally appointed exploration manager of the Purdy’s Reward exploration license. Over the past few
days, Novo has begun to line up necessary permitting needed to undertake work at Purdy’s Reward. A summary of permitting and
exploration plans is as follows:
- Novo plans to undertake trenching activities under an approved plan of work (“POW”) previously filed by Artemis.
Importantly, heritage clearance has been completed. Upon selection of a hard rock trenching contractor, Novo plans to test
this trenching method within 2-3 weeks.
- Novo recently filed a POW to allow scout diamond core drilling to be undertaken at Purdy’s Reward. Approvals are
awaited. Heritage clearance must be undertaken once the POW has been approved. This entire process is anticipated to
take 3-4 weeks.
- Novo recently filed a POW to undertake large diameter RC drilling at Purdy’s Reward. This was quickly approved.
Heritage clearance will be undertaken within the next couple weeks. Before beginning large diameter RC drilling, Novo plans
to drill some scout diamond core holes as discussed above.
Exploration at Comet Well
The five tenement applications comprising the Comet Well property are currently going through the process of
grant. Novo anticipates granting of these tenements within the next 1-2 months after which time POW applications will be
filed for drilling and trenching and heritage clearance will be undertaken. In the meantime, Novo is undertaking detailed
mapping of these tenements in preparation for future advanced exploration work. An update on the geology of the Comet Well
area will be provided to the market within the next couple weeks once this work has been completed.
Exploration on Novo’s 100% Controlled Tenements
Having been staked just a few months earlier, Novo’s 100% owned tenements adjoining Purdy’s Reward and Comet
Well must go through the process of grant. It is anticipated that this could take another 6-9 months. Once granted,
Novo plans to file POW applications for drilling the down dip continuation of gold-bearing conglomerates exposed at Comet Well and
Purdy’s Reward.
Dr. Quinton Hennigh, 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 to explore and develop gold projects in the Pilbara region of Western Australia, and Novo has
built up a significant land package covering approximately 12,000 sq km. Novo also controls a 100% interest in approximately 2 sq
km covering much of the Tuscarora Au-Ag vein district, Nevada. 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
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, the statement as to the results expected from various testing and sampling
exercises described in this news release. 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 Novo having sufficient cash to fund the planned
drilling, sampling, and other activities required before the Company is established as a mining company.
