Novo Announces First Results from Oxide Resource Drilling Program and Discusses Mining Concept for Beatons Creek
VANCOUVER, BC / ACCESSWIRE / February 9, 2015 / Novo Resources Corp. (CSE: NVO; OTCQX: NSRPF) ("Novo" or the "Company") is pleased to announce initial assay results from recent drilling at its Beatons Creek gold project near Nullagine, Western Australia. Novo drilled approximately 9,000 meters in 327 reverse circulation drill holes in late 2014 as part of its program to define a shallow, oxide resource (please see attached Drill Hole Map).
Intercepts include 1 m @ 9.09 gpt Au in hole BCRC14-080, 1 m @ 11.32 gpt Au in hole BCRC14-117, 3 m @ 2.79 gpt Au in hole BCRC14-125, 4 m @ 2.27 gpt Au in hole BCRC14-126, 2 m @ 8.12 gpt Au in hole BCRC-145 and 3 m @ 2.59 gpt Au in hole BCRC14-148 (please see Reverse Circulation Drill Results table below). Importantly, the aforementioned gold intercepts occur in thoroughly oxidized conglomerate horizons (reefs) within 10 meters of surface. Reefs display good continuity across the target area (please see attached Drill Hole Map for cross section locations and see attached Sections A-A', B-B' and C-C') indicating they can potentially be mined utilizing simple, inexpensive techniques and with reasonable predictability (please see Mining Concept discussion below).
Recent metallurgical work indicates mineralized reef material is potentially amenable to simple, inexpensive gravity processing (please refer to the Company's news release dated December 10, 2014). Novo is currently focused on developing a resource comprised of such reefs that can be quickly advanced to feasibility and development (please refer to multiple news releases from the latter half of 2014).
"We are extremely pleased with these drill results," commented Dr. Quinton Hennigh, President and CEO of Novo Resources Corp. "Not only are we seeing promising grades, but we can now also see good continuity of shallow, oxidized gold-bearing conglomerates over broad areas. Recent work has also demonstrated the potential for simple, low-cost mining techniques. Couple this with what we now know about the potential to treat this mineralized material utilizing inexpensive gravity recovery, we think we can develop a very cost effective mining operation at Beatons Creek."
Reverse Circulation Drill Results - Beatons Creek Oxide Resource Drilling | ||||||
Hole | From (m) | To (m) | Length (m) | 1 kg LeachWell (gpt) | 3 kg LeachWell (gpt) | 3 kg Screen Metallic Assay (gpt) |
BCRC14-001 thru -008 awaiting full assay | ||||||
BCRC14-009 | 15 | 16 | 1 | 1.17 | ||
BCRC14-010 thru -012 awaiting full assay | ||||||
BCRC14-013 | 36 | 37 | 1 | 1.00 | 0.91 | |
BCRC14-014 thru -019 awaiting full assay | ||||||
BCRC14-020 | 31 | 33 | 2 | 1.68 | ||
BCRC14-021 | 30 | 32 | 2 | 1.00 | ||
BCRC14-022 awaiting full assay | ||||||
BCRC14-023 | 32 | 33 | 1 | 2.11 | ||
BCRC14-024 thru -026 awaiting full assay | ||||||
BCRC14-027 | 20 | 21 | 1 | 2.57 | ||
BCRC14-028 | 24 | 25 | 1 | 2.40 | ||
BCRC14-029 and -030 awaiting full assay | ||||||
BCRC14-031 | 28 | 31 | 3 | 1.42 | ||
BCRC14-032 | 26 | 27 | 1 | 1.38 | ||
BCRC14-033 | 30 | 31 | 1 | 1.83 | ||
BCRC14-034 and-035 awaiting full assay | ||||||
BCRC14-036 | 9 | 11 | 2 | 1.00 | ||
BCRC14-037 | 11 | 12 | 1 | 1.25 | ||
BCRC14-038 | 1 | 3 | 2 | 1.76 | ||
BCRC14-039 | 1 | 2 | 1 | 1.90 | ||
BCRC14-040 thru -063 awaiting full assay | ||||||
BCRC14-064 | 1 | 2 | 1 | 1.54 | ||
BCRC14-065 | 6 | 7 | 1 | 1.71 | ||
BCRC14-066 thru -072 awaiting full assay | ||||||
BCRC14-073 | 13 | 14 | 1 | 1.69 | ||
BCRC14-074 thru -079 awaiting full assay | ||||||
BCRC14-080 | 5 | 6 | 1 | 9.09 | ||
BCRC14-081 awaiting full assay | ||||||
BCRC14-082 | 9 | 11 | 2 | 1.01 | ||
BCRC14-083 | 1 | 2 | 1 | 3.36 | ||
16 | 18 | 2 | 1.12 | |||
BCRC14-084 | 0 | 1 | 1 | 0.76 | ||
15 | 16 | 1 | 0.92 | |||
BCRC14-085 | 8 | 10 | 2 | 1.90 | ||
BCRC14-086 | 10 | 12 | 2 | 1.22 | ||
BCRC14-087 | 12 | 13 | 1 | 2.19 | ||
BCRC14-088 thru -113 awaiting full assay | ||||||
BCRC14-114 | 25 | 26 | 1 | 1.76 | ||
BCRC14-115 | 24 | 25 | 1 | 0.92 | ||
BCRC14-116 | 17 | 18 | 1 | 1.33 | ||
BCRC14-117 | 9 | 10 | 1 | 11.32 | ||
BCRC14-118 thru -124 awaiting full assay | ||||||
BCRC14-125 | 6 | 9 | 3 | 2.79 | ||
22 | 23 | 1 | 1.31 | |||
BCRC14-126 | 2 | 6 | 4 | 2.27 | ||
19 | 21 | 2 | 1.29 | |||
BCRC14-127 thru -138 awaiting full assay | ||||||
BCRC14-139 | 4 | 6 | 2 | 3.16 | ||
BCRC14-140 | 15 | 16 | 1 | 1.51 | ||
19 | 20 | 1 | 1.53 | |||
BCRC14-141 | 0 | 1 | 1 | 1.10 | ||
BCRC14-142 | 14 | 15 | 1 | 1.95 | ||
BCRC14-143 | 7 | 9 | 2 | 2.45 | ||
BCRC14-144 | 4 | 5 | 1 | 1.80 | ||
22 | 23 | 1 | 4.57 | |||
BCRC14-145 | 7 | 9 | 2 | 8.12 | ||
BCRC14-146 and -147 awaiting full assay | ||||||
BCRC14-148 | 2 | 5 | 3 | 2.59 | ||
17 | 18 | 1 | 1.03 | |||
All samples analyzed utilizing 1 kg LeachWell will be re-analyzed utilizing 3 kg LeachWell and 3 kg Metallic Screen Assay | ||||||
Due to the very large size of reverse circulation drill samples, laboratory preparation has been exceedingly slow. Novo has been working with Genalysis Laboratories on a way to quicken this process. The solution has been to take a 1 kg split of drill cuttings and analyze them using the LeachWell technique, an accelerated CN leach (6 hour leach time). Most of the results reported in the nearby table were determined by this method. Samples containing appreciable gold are then subjected to the full analytic protocol and analyzed utilizing a 3 kg split subjected to the LeachWell technique (24 hour leach time). A second 3 kg split is subjected to screen metallic fire assay. Conducting the latter two analyses on large, 3 kg splits, is critical to adequately quantify gold content in the highly nuggety mineralized material from Beatons Creek. Turn-around time has improved in recent weeks, and further results should be available shortly.
Mining Concept
Novo has begun to evaluate cost effective mining techniques for its upcoming feasibility study of shallow, oxidized, gold-bearing conglomerates. Conventional mining requires drilling and blasting, both of which contribute much to overall mining costs. Recent earthworks conducted as part of Novo's drilling and trenching program have provided valuable insight into the behaviour of rock at Beatons Creek. Due to the soft, heavily weathered nature of these rocks and the tendency for matrix material to break away from boulder clasts, it appears that drilling and blasting will not be required. This could prove to be a significant cost savings.
Due to the hilly topography at Beatons Creek, it is envisioned that overburden material can be disposed of in low areas adjacent to mining sites. This will eliminate the need to haul waste material, another potential savings to overall mining costs (please see Figure 1).
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(Figure 1: Conceptual mining plan at Beatons Creek. Overburden above the lower reef, blue, will be pushed aside into adjacent low areas and this reef will be selectively mined. Overburden above the upper reef, red, will then be pushed off to the sides, and this reef will then be selectively mined. This technique reduces the need to haul waste material and could be very cost effective.)
Using simple equipment such as an excavator with a flat edged bucket, gold bearing conglomerates can be selectively mined thus reducing dilution and, thus, helping maintain higher grades. Costs of this type of mining are anticipated to be low. Figure 2 (below) is a schematic illustration showing this selective mining technique.
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(Figure 2: Schematic illustration showing selective mining concept at Beatons Creek. Using a bulldozer, soft sandstone and conglomerate overburden can be ripped and pushed away exposing the underlying gold-bearing conglomerate horizon. The targeted conglomerate can then be selectively mined utilizing an excavator fitted with a flat edged bucket.
Novo is planning to seek permits to undertake mining of small-scale benches as part of its feasibility level work. By doing so, the Company hopes to gather further information needed to evaluate the effectiveness of these mining techniques as well as their costs. This work is expected to take place in April once all assay results have returned.
Deep Drill Hole Update
Core from a recently completed deep drill hole has been logged, sawn and sampled (please refer to the Company's news release dated December 10, 2014 for further details). Assays from this hole are expected over the next couple weeks.
Quality Control and Quality Assurance
Reverse circulation drilling discussed in this news release was conducted under the supervision of Dr. Quinton Hennigh, Novo's Chief Executive Officer, President and Director. Drill samples were submitted to Genalysis Laboratories, Perth, WA for analysis. Sample weights range from approximately 15-20 kg. A 1 kg split was taken from each drill sample and subjected to the LeachWell technique, an accelerated CN leach (6 hour leach time). Most of the analyses reported in the table accompanying this news release were analyzed by this method, however, a few samples from holes BCRC14-013, BCRC14-027 and BCRC14-028 were analyzed utilizing a 3 kg split subjected to the LeachWell technique (24 hour leach time). One sample from hole BCRC14-013 was also analyzed by screen metallic assay on a 3 kg split. Due to the nugget nature of gold mineralization at Beatons Creek, all gold-bearing samples from this drill program will ultimately be analyzed utilizing a 3 kg split by the LeachWell technique and by utilizing a 3 kg split by screen fire assay. Results from the latter two types of analysis are expected to demonstrate acceptable sample variability and thus will be used for resource modeling.
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 1,800 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, (1) the statement that reefs display good continuity across the target area indicating they can potentially be mined utilizing simple, inexpensive techniques and with reasonable predictability, and (2) the statement that recent metallurgical work indicates mineralized reef material is potentially amenable to simple, inexpensive gravity processing. 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 exploration industry and the accuracy of assumptions and analysis made by management of Novo.
The Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
Drill Hole Map
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Section A-A'
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Section B-B'
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Section C-C'
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SOURCE: Novo Resources Corp.
