Novo Resources Strategizes Moving Beatons Creek Toward Bankable Feasibility


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OTC:BB:NSRPF / CNSX:NVO
07/24/2014 [ACCESSWIRE]

VANCOUVER, BC / ACCESSWIRE / July 24, 2014 / On July 8, 2014, Novo Resources Corp. ("Novo" or the "Company") (CSE: NVO; OTCQX: NSRPF) released results from a deportment study in which it was recognized that over 98% of gold by weight in each of two samples of unoxidized gold-bearing conglomerates is of coarse grain size, >150 microns (>0.15 mm). Both samples were taken from diamond drill core from holes drilled within the 421,000 troy ounces gold inferred resource (8.9 million tonnes at a grade of 1.47 grams gold per tonne) at Grant's Hill (refer to Novo's news release dated May 1, 2013 and to the independent technical report, entitled Technical Report and Resource Estimate, Beatons Creek Project, Pilbara Region, Australia dated May 1, 2013, prepared by Patrick Huxtable (RPGeo MAIG), of Tetra Tech, Perth, Australia, which was filed on SEDAR under the Company's profile on May 23, 2013).

Further evidence for significant coarse gold comes from a suite of spot rock chip surface samples recently collected at Beatons Creek that was analyzed by screen metallic fire assay (data presented in nearby table). These samples come from a recently identified extension of the Grant's Hill gold-bearing conglomerates discovered east of the inferred resource mentioned above as well as from various sites across the Beatons Creek project where the Company is considering collecting bulk samples (see attached Surface Sample Results Map). Gold grades from this suite of heavily oxidized gold-bearing conglomerate range from 3.08 to 66.83 grams per tonne (gpt). The coarse gold contribution (+150 micron) in these samples is particularly notable, ranging from 6 to 84%, and 18 of 29 samples display coarse gold contributions in excess of 50%.

Select screen metallic fire assays from spot rock chip samples from the Beatons Creek area:

 -----------------------------------------------------------------------------------------------------------------------------
 |                                                                                                                           |
 |---------------------------------------------------------------------------------------------------------------------------|
 |Sample |Sample|Weight of +150 |First fire assay of |Second fire assay of|Weight of gold in the|Calculated |% contribution  |
 |       |weight|micron fraction|-150 micron fraction|-150 micron fraction|+150 micron fraction |grade (gpt)|from +150 micron|
 |       |(g)   |(g)            |(gpt)               |(gpt)               |(mg)                 |           |gold            |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR 1|998.7 |4.28           |2.12                |2.86                |1.21                 |3.69       |33              |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR 2|760.9 |1.98           |10.95               |9.78                |9.70                 |23.09      |55              |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR 3|814.2 |9.15           |8.84                |8                   |7.75                 |17.85      |53              |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR 7|946.4 |31.85          |3.16                |3.07                |5.20                 |8.51       |63              |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |1035.1|12.97          |2.13                |1.94                |1.11                 |3.08       |34              |
 |11     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |710.1 |3.36           |4.8                 |4.83                |6.35                 |13.73      |65              |
 |12     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |850.6 |18.73          |2.36                |1.9                 |6.45                 |9.67       |78              |
 |13     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |802.4 |3.72           |9.57                |9.4                 |8.25                 |19.72      |52              |
 |15     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |779.9 |11.19          |14.38               |17.22               |40.00                |66.83      |76              |
 |17     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |754.7 |1.75           |2.56                |2.14                |2.30                 |5.38       |56              |
 |18     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |801.6 |8.22           |2.91                |3.05                |3.15                 |6.88       |57              |
 |19     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |817.9 |2.62           |3.19                |2.84                |1.88                 |5.3        |43              |
 |20     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |1176.4|38.03          |2.23                |2.19                |1.05                 |3.03       |27              |
 |22     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |1015.7|34.51          |3.96                |4.57                |6.50                 |10.52      |59              |
 |23     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |1035.5|7.93           |22.22               |22.15               |42.50                |63.06      |65              |
 |24     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |1030.6|13.18          |4.18                |4.62                |2.45                 |6.72       |35              |
 |25     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |785.1 |0.93           |11.18               |10.89               |11.15                |25.22      |56              |
 |26     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |878.8 |15.37          |36.56               |33.74               |15.30                |51.93      |32              |
 |32     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |853.4 |19.32          |13.06               |13.05               |17.70                |33.5       |61              |
 |46     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |1067.9|11.4           |10.83               |12.08               |26.36                |36.01      |68              |
 |48     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |850.3 |14.42          |2.06                |2.3                 |1.27                 |3.63       |40              |
 |49     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |888.4 |7.46           |4.86                |4.15                |5.48                 |10.63      |58              |
 |50     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |901.4 |9.63           |5.53                |4.55                |7.83                 |13.67      |63              |
 |53     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR  |879.3 |1.32           |3.87                |3                   |1.04                 |4.62       |26              |
 |54     |      |               |                    |                    |                     |           |                |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR72|920.1 |6.47           |3.49                |3.27                |1.60                 |5.09       |34              |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR74|919.4 |3.04           |3.12                |2.99                |1.37                 |4.53       |33              |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR76|800.6 |1.83           |13.59               |14.54               |14.40                |32.02      |56              |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR77|996.8 |14.57          |3.12                |3.56                |0.27                 |3.56       |6               |
 |---------------------------------------------------------------------------------------------------------------------------|
 |14BCR78|973.5 |30.44          |4.88                |3.78                |22.65                |27.46      |84              |
 -----------------------------------------------------------------------------------------------------------------------------

These results, although preliminary, suggest that significant metallurgical recovery of gold may be possible using simple, cost-effective gravity techniques and Novo should consider gravity-only processing at Beatons Creek. Benefits of such an option include potentially low capital development and operating costs as well as relatively simple, straightforward permitting requirements.

Recent geological mapping and structural analysis suggests that significant extensions of gold-bearing conglomerates may lie at depths of less than 20 meters, the approximate depth of oxidation at many locations across the Beatons Creek project. Therefore, potential exists for defining significant resources of oxidized gold-bearing conglomerates that could be amenable to gravity-only processing.

Strategy for Advancing Beatons Creek to Bankable Feasibility

Novo is currently earning a 70% interest in three mining leases, M46/09, M46/10 and M46/11, from Millennium Minerals Ltd, an ASX listed gold mining company operating the Golden Eagle mine approximately 8 kms south of Beatons Creek. The final requirement needed to complete the earn-in is to submit a bankable feasibility study for the project by August 2016. Many of the aforementioned prospective conglomerates fall on these mining leases as well as surrounding prospecting and exploration licenses owned 100% by Novo's Australian subsidiary, Grant's Hill Gold Pty Ltd and held in joint venture with the Creasy Group.

Based on extensive mapping and surface sampling, Novo views the prospect for defining extensive shallow oxidized gold-bearing conglomerate horizons as favourable and that such potential deposits could support a modest sized, 1,000-2,000 tonne per day, stand-alone, mining and milling operation. Therefore, the Company plans to aggressively pursue the data collection and interpretation needed to move such a scenario forward to bankable feasibility. Elements of this plan include:

  • -a focus on defining and/or upgrading significant oxide resources within the project area. It should be noted that about 16% of the current inferred resource referenced above is considered oxide mineralization. Novo will therefore focus its exploration efforts on areas where extensions of gold-bearing conglomerates are thought to lie within the approximately 20-meter deep oxide profile. Due to the heterogeneous nature of the gold-bearing conglomerates, it is anticipated that drilling and bulk sampling will both be required to provide data to support such a resource. Data for resource modeling will be collected by year-end. Effort will be made to collect sufficiently high quality data to establish indicated and/or measured mineral resources with the aim of converting these to reserves through feasibility level economic study.

  • -testing gravity recoverable gold. Novo will be collecting approximately 15 100-kilogram samples from various outcropping reefs and submitting these for deportment study. The goal of this study will not only be to determine the recoverability of gold by gravity processing, but to see if these materials can be upgraded by screening out large cobbles before crushing and grinding, to determine optimal grind size to liberate gold and to see if there are any other strategies for the communition of these rocks that might lower costs. Data from these first 15 samples will determine whether additional metallurgical work is necessary for bankable feasibility level study.

  • -initiating flora and faunal environmental studies needed to submit a mine plan and necessary permits. This work is expected to begin within a few weeks and is expected to take 9-12 months to complete.

  • -undertaking and completing a feasibility level economic study during 2015. It is anticipated a mine plan can be developed concurrent with such economic study.

"We see a clear path to move Beatons Creek forward," commented Dr. Quinton Hennigh, President, CEO and Director of Novo Resources Corp. "The prospect of potentially developing a stand alone gravity-recoverable gold operation is very intriguing. Capital and production costs of such a scenario could be very reasonable, and the process of moving such a project forward should be easily manageable. We plan to collect all necessary data to move this project forward over the coming few months so that we can deliver a bankable feasibility study in 2015."

Quality Control and Quality Assurance

Rock chip samples reported in this news release were collected by Novo's personnel. Samples were prepared and analyzed by metallic screen fire assay (screened to -150 microns) by Intertek-Genalysis Laboratory Services Pty Ltd, Perth, Australia. Metallic screen fire assaying utilizes a 1 kilogram split of pulverized sample and is ideal for mineralization containing nuggety gold.

Dr. Quinton Hennigh, the Company's Chief Executive Officer, President and 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 evaluate, acquire and explore gold properties. The company presently has multiple joint ventures earning a 70% interest in approximately 20,000 square kilometers of 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

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 that significant metallurgical recovery of gold may be possible using simple, cost-effective gravity techniques; that significant extensions of gold-bearing conglomerates may lie at depths of less than 20 meters and therefore, potential exists for defining significant resources of oxidized gold-bearing conglomerates that could be amenable to gravity-only processing; that Novo views the prospect for defining extensive shallow oxidized gold-bearing conglomerate horizons as favourable, that such potential deposits could support a 1,000-2,000 tonne per day, stand-alone, mining and milling operation, that therefore, the Company plans to aggressively pursue the data collection and interpretation needed to move such a scenario forward to bankable feasibility, and that the capital and production costs of such a scenario could be very reasonable. 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, the ability to undertake and complete the planned exploration activities, the receipt of successful results as exploration proceeds, customary risks of the mineral resource exploration industry, as well as Novo having sufficient cash to fund the planned drilling and other activities.

The Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Surface Sample Results Map

 
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SOURCE: Novo Resources Corp.   

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