VANCOUVER, BC / ACCESSWIRE / August 28, 2014 / Novo Resources Corp. (CSE: NVO; OTCQX: NSRPF) ("Novo" or the "Company") is pleased to announce it has received results from 1,103 bulk leach extractable gold ("BLEG") samples covering its tenements in the eastern Pilbara, Western Australia. As discussed in Novo's news release dated March 19, 2014, the BLEG technique is a type of stream sediment sampling with high sensitivity that allows for rapid screening of large tracts of land for the presence of outcropping gold mineralization. This program was undertaken with assistance from Newmont Exploration Pty Ltd, a subsidiary of Newmont Mining Corporation, and samples were processed at Newmont's BLEG laboratory in Welshpool, Western Australia. Gold and a broad suite of other elements were analyzed.
Ten anomalous areas displaying gold and multi-element characteristics thought to be strictly associated with conglomerates have been identified. Of these, seven are situated on tenements comprising the Company's Beatons Creek (Nullagine) and Marble Bar projects. Two anomalies are located in the Bamboo Creek-Yarrie region approximately 110 km north of the town of Nullagine and the remaining anomaly is situated at Elsie Creek, approximately 65 km east-northeast of Nullagine.
Another seven anomalies display characteristics that suggest they may originate from conglomerates but could alternatively be associated with other types of source rocks. Of these, five are situated in the Nullagine and Marble Bar areas. One anomaly is located near Salvation Well and another at Sunday Hill, approximately 70 km northeast and 50 km east-southeast of Nullagine, respectively.
Conglomerate or potentially conglomerate-related anomalies that are particularly noteworthy include four new areas proximal to the Beatons Creek project where the Company has, to date, focused most of its advanced exploration. These new anomalies expand the footprint of gold anomalism to the west and indicate that follow-up prospecting should be undertaken to identify potential conglomerates horizons shedding gold into these streams. Also of note, newly highlighted anomalies at Marble Bar include North Virgin Creek and Glen Herring in the southern part of the basin and one west of Contact Creek in the north.
In addition to the seventeen conglomerate or potentially conglomerate-related anomalies discussed above, twenty-five anomalies have been identified that appear to be related to other, older host rocks in the region. These anomalies occur in areas underlain by metamorphic rocks and granite and are likely related to orogenic-style lode gold occurrences.
The Company is currently engaged in follow-up prospecting of all newly identified anomalies. A suite of 675 BLEG samples collected by the Company from its tenements in the West Pilbara are currently at Newmont's laboratory awaiting analysis. Work on these samples has been delayed due to changes in staffing at that laboratory.
Beatons Creek Exploration and Permitting Program
Drilling and Channel Sampling
To meet its goal of defining a significant shallow oxide resource at Beatons Creek, Novo submitted Programme of Work ("POW") applications to the Western Australian Department of Mines and Petroleum in early July. Upon receipt of POW approvals, the Company plans to initiate reverse circulation drilling of approximately 150 shallow holes testing areas thought to be underlain by oxidized flat-lying gold-bearing conglomerate horizons. In addition, plans are being made to extract numerous large (approx. 100 kg) channel samples across outcropping reefs utilizing a track hoe. The aim of this exploration program is to gather sufficiently high quality data to define indicated and/or measured resources that can ultimately be converted to reserves through a feasibility-level economic study. Novo intends to fast-track gold production from shallow oxide gold mineralization on a scale of 1,000-2,000 tonnes per day utilizing gravity-only recovery (refer to Novo's news release dated July 24, 2014).
In addition to the program discussed above, Novo plans to complete a deep drill test of the Beatons Creek conglomerates in an area approximately 3 km southwest of the current drilled resource. This drill hole is partly funded by a grant from the Western Australian Department of Mines and Petroleum 2014 Co-Funded Exploration Drilling awards (refer to Novo's news release dated December 17, 2013).
Detailed Mapping and Surveying of Gold-Bearing Conglomerates
Since early July, Novo has been engaged in detailed mapping of gold-bearing conglomerates at Beatons Creek. This work is essential to guide further exploration and serves as a framework to develop upcoming resource models. Although drilling in 2011-2013 clearly demonstrated the presence of two high grade conglomerate horizons at Grant's Hill (refer to Novo's news release dated February 13, 2013), the number of horizons and their characteristics vary in other locations. About one km northeast of Grant's Hill at Golden Crown Hill, for example, up to five or six north-south oriented channelized conglomerate horizons are stacked atop one another. At another area approximately 1.5 km north of Grant's Hill, one prominent reef is evident and displays striking continuity over a broad area of at least one square km. An initial interpretation suggests the area around Golden Crown Hill is the apex of a channel fan that was deposited by a meandering river that was depositing sediment into the Nullagine embayment. The more sheet-like conglomerates at Grant's Hill and those to the north likely formed when sea level rose and waves cut across lower reaches of this fan leaving behind boulder lags and associated heavy minerals including gold and clasts of pyrite (refer to photos in Novo's news release dated April 4, 2013).
Environmental Studies and Permitting
Novo has engaged MMWC Environmental Pty Ltd of Perth, Australia to commence baseline floral and faunal studies of the project area in preparation for anticipated mine permitting in 2015. Floral studies are scheduled to commence on September 2, 2014 and faunal studies are expected to commence later that month. An area of approximately 8 square km encompassing all of the shallow oxidized gold-bearing conglomerates, as well as locations for site infrastructure including a tailings storage facility, will be subject to study. Novo plans to conduct baseline studies concurrent with its highly focused exploration program to meet its goal of completing feasibility and permitting by the end of 2015.
On August 21, Novo submitted 12 bulk samples (100 kg each) to Met-Solve Laboratories of Langley, British Columbia for metallurgical test work. The chief aim of this work is to determine recoverability of gold using conventional gravity processing techniques. Data regarding work index and partitioning of gold during crushing will also be collected. Potential exists to upgrade material during processing by possibly coarse crushing, scrubbing and screening out coarse cobbles and boulders. This round of metallurgical test work is considered bench scale and will provide data to help design a future pilot scale bulk processing test needed for feasibility level work.
"We are pleased to see results from our BLEG program," commented Dr. Quinton Hennigh, President, CEO and Director of Novo Resources Corp. "Although we see many new anomalies, it is clear that the most robust anomalism is centered over our Beatons Creek and Marble Bar tenement packages. One explanation for this may relate to the level of erosion within this general area. Surrounding areas have simply experienced either deeper or shallower levels of erosion."
"We are very excited to now refocus our exploration at Beatons Creek where we think we can quickly define a robust oxide resource and move it towards feasibility study and permitting," continued Hennigh. "Given the guidance we have received from all parties who will be helping us with this work, we think we can reach this goal by late 2015."
Quality Control and Quality Assurance
BLEG samples discussed in this news release were collected by personnel of Novo and Newmont Exploration Pty Ltd.. Samples were prepared and analyzed at Newmont Mining Corporation's proprietary BLEG laboratory in Welshpool, Western Australia. Duplicates and blanks were submitted at a rate of approximately 1-to-20 samples.
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 [email protected].
On Behalf of the Board of Directors,
Novo Resources Corp.
CEO and President
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 the Company 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, and that therefore, the Company plans to aggressively pursue the data collection and interpretation needed to move such a scenario forward to the goal of completing feasibility and permitting by the end of 2015. 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, assumptions made by management of Novo, 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.
SOURCE: Novo Resources Corp.