Novo Resources Corp. Sees Increased Grades from Bulk Sample at Beatons Creek
VANCOUVER, January 10, 2017 - Novo Resources Corp. ("Novo" or the "Company") (TSX-V: NVO; OTCQX: NSRPF) is pleased to announce results from bulk sample processing at its 100% controlled Beatons Creek gold project, Western Australia. In 2016, Novo extracted approximately 30,000 tonnes of mineralized conglomerate in order to provide refined data concerning mining techniques, costs, methods of grade control, mining dilution and grade reconciliation, information critical to help the Company complete its preliminary economic assessment (please see the Company's news release dated September 6, 2016 for further details). A nearby diagram (Figure 1, below) describes the geology of the gold deposit and steps Novo has taken to drill/trench, model, estimate, and sample the deposit. The resource block model of the bulk sample area generates undiluted grades averaging 1.65 gpt Au in the indicated category (please refer to the Company's news release dated September 16, 2015 for further information about the resource estimate and to the technical report entitled "NI 43-101 Technical Resource Report, Beatons Creek Gold Project, Pilbara Region, Australia" prepared by Arnand van Heerden (PGeo, SACNASP, MAusIMM) of Tetra Tech which was filed under Novo's profile on SEDAR on October 13, 2015). Between September 19 and November 11, 2016, Novo processed a 9,680 dry tonne representative subsample of the 30,000 tonne bulk sample. This subsample generated a calculated head grade of 1.88 gpt Au, 14% greater than the predicted grade. Given that waste dilution is estimated between 20 and 30%, the undiluted bulk sample grade is potentially higher than 1.88 gpt Au. Assays of waste material are required to adequately determine undiluted grades.
Novo thinks the resulting diluted calculated head grade of 1.88 gpt Au from this bulk sample affirms the existing NI 43-101 resource model. Therefore, Novo is content to proceed with completion of its preliminary economic assessment due later in the first quarter of 2017.
"We are very pleased with results from test processing our bulk sample," commented Dr. Quinton Hennigh, President, CEO and a director of Novo Resources. "We have long recognized the nugget effect at Beatons Creek to be significant. Our bulk sample generated higher grades than predicted by our resource estimate. Considering the predicted bulk sample grade is somewhat lower than our overall oxide resource grade at Beatons Creek, we are particularly encouraged. Now that all of our bulk sampling data has returned, we plan to complete a preliminary economic assessment of the oxide gold project at Beatons Creek during the first quarter of 2017."
Details of Test Processing
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--The area that was sampled was chosen, in part, because its estimated resource grade (1.65 gpt Au) was somewhat lower than the overall oxide resource grade at Beatons Creek (2.7 gpt Au). Given the strong nugget effect, Novo wanted to determine if lower grade material might demonstrate improved grades upon processing.
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--Data used to generate a calculated head grade included: 1) assays of tailings from Novo's IGR3000 test gravity plant, 2) assays of tailings from the concentrating table ('table') used to clean gold concentrates, and 3) refined gold produced.
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--On a per tonne basis, results are as follows:
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-0.71 gpt Au recovered;
-1.13 gpt Au reported to plant tailings; and
-0.04 gpt reported to table tailings,
-resulting in a calculated head grade of 1.88 gpt Au, a 14% increase over the undiluted predicted grade of the conglomerate.
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-- Mining dilution is estimated between 20 and 30% (Figure 1, below). Early estimates of mine dilution were ~10%, mainly from intentional incorporation of footwall sandstone when excavating the bulk sample. This was done to ensure the gold-rich basal part of the conglomerate was recovered. It was later recognized that, in places, thin interbeds of sandstone within the conglomerate horizon were incorporated in the bulk sample resulting in additional dilution. A small volume of waste rubble left behind by stripping also contributed minor dilution.
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--Given that waste dilution is estimated between 20 and 30%, the undiluted bulk sample grade is potentially higher than 1.88 gpt Au.
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--The average grade of 33, 50-kg bench samples collected during bulk sampling was 2.78 gpt Au (please see the Company's news release dated September 28, 2016 for further details). When a 4 gpt Au top-cut is applied, the average comes to 2.42 gpt Au, a close comparison to the undiluted grade of the bulk sample after adjusting for dilution. This suggests such bench sampling could be an effective means of grade control at Beatons Creek.
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--On a day-to-day basis, calculated head grades were found to range from 0.92-3.97 gpt Au throughout the processing exercise.
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--Although the IGR3000 gravity plant performed well, the horizontal impact crusher used to comminute bulk sample material did not consistently break down material as fine as hoped. Therefore, significant gold remained locked in tailings. Also, throughput through the crusher was lower than expected. Because of the late start of the program and the urgency to generate data to complete an economic study, Novo opted to treat a subsample rather than the entire 30,000 tonne bulk sample.
Debentures Converted
The Company is also pleased to announce that, further to its news releases dated January 14 and March 10, 2016 announcing the convertible debenture financing with a gold redemption right, all of the outstanding debentures have been converted into common shares of the Company.
Tailings and table tailings samples discussed in this news release were collected by Novo personnel. Samples were submitted to Genalysis Laboratories, Perth, WA for analysis. Preparation consisted of crushing the entire sample to -2 mm. A 0.5-1 kg split was subjected to the LeachWELL(R) assay, an accelerated CN leach (6 hour leach time), then subjected to analysis by mass spectrometry.
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 a 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. 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,
"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 exploration and testing 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 planned subsequent testing and exploration activities.
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(Figure 1: Schematic cross section showing the geology of the bulk sample site and steps Novo took to drill/trench, model, estimate, and sample the deposit.)
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