09/09/2021 - 17:01

Novo boosts near-mine drilling budget at Pilbara gold play

09/09/2021 - 17:01

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Toronto-listed conglomerate gold producer, Novo Resources is set to splash out a further A$2.5 million on near-mine exploration drilling as it looks to source more feed for its Golden Eagle processing facility at its Nullagine gold project in the Pilbara region of WA. The company has identified more than 20 drill targets within trucking distance of Golden Eagle that will be targeted by 25,000m of drilling by year’s end.

The Golden Eagle processing facility at Novo Resources’ 100 per cent owned Nullagine conglomerate gold project in the Pilbara, WA. Credit: File

Toronto-listed conglomerate gold producer, Novo Resources is set to splash out a further A$2.5 million on near-mine exploration drilling as it looks to source more feed for its Golden Eagle processing facility at its Nullagine gold project in the Pilbara region of Western Australia. The company has identified more than 20 drill targets within trucking distance of Golden Eagle that will be targeted by 25,000 metres of drilling by year’s end.

The expanded drilling budget adds to the A$12 million the company previously set aside for exploration across its 100 per cent owned Pilbara tenure for 2021.

The already commenced 25,000m drilling campaign in the Mosquito Creek Basin is looking to fast-track delineation of targets that show potential for generating additional oxide mill feed for the Golden Eagle processing facility at Nullagine.

Management says historical data on previously identified targets and historical open pits at the tenure is being re-analysed, with other prospects also being evaluated for potential drill-testing.

Priority targets include the Genne and Parnell-Vulture prospects on mining leases held by Novo.

The company says soil sampling points to a series of gold anomalies coinciding with geological mapping at Parnell. Drill targets at the prospect include a hefty 1.5km long by 500m mineralised zone defined by elevated gold levels going 100 parts per billion or more, with individual samples reaching grades as high as 14.6 g/t gold.

Some 110km north of Nullagine, Novo has also recently wrapped up a maiden 1,800m reverse circulation campaign at its 100 per cent owned Talga Talga gold project.

The 34-hole drilling program targeted a series of orogenic lode gold deposits reported to be suitable for open cut mining. The company says Talga Talga has potential to be included in the Nullagine mining operations as a satellite deposit.

Results from the drilling remain pending.

Novo has laid out a strategy to trial bulk samples from Talga Talga through its mechanical sorter at Golden Eagle.

It says five bulk samples weighing in at about five tonnes each have now been excavated from several lodes at Talga Talga and delivered to Golden Eagle for the test work, anticipated to commence in October.

Bulk samples from previous sampling programs at the Karratha and Egina prospects have also been shipped to Golden Eagle for the upcoming mechanical sorting trials.

Novo anticipates results from the testing by year’s end.

The company recently reported that the Golden Eagle mill churned out nearly 8,600 ounces of gold just in the month of July, an increase of 46 per cent from June.

July revenue also surged by 50 per cent from the June numbers after Novo unloaded some 7,900 ounces of the precious yellow metal to pocket about A$19.2 million for the month.

To date, all of the company’s current mill feed has been sourced exclusively from its conglomerate gold deposit at Beatons Creek.

With 25,000m of exploration drilling booked in for the remainder of the year and with nearly A$50m in the tin, Novo can now turn its eye toward growing its Pilbara conglomerate gold venture into a long-life mining operation – and in the process maybe put paid to some of its critics who didn’t think it possible to successfully mine conglomerate gold in the Pilbara.

 

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au

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