16/10/2020 - 16:50

Novo charges toward gold production

16/10/2020 - 16:50

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Novo Resources is full steam ahead as it hurtles towards gold production in WA’s Pilbara region, with the company’s latest update highlighting rapid progress in the refurbishment of its Golden Eagle mill and development across the emerging Beaton Creek mining area.

Novo’s Golden Eagle mill south of Nullagine. Credit: File

Novo Resources is full steam ahead as it hurtles towards gold production in WA’s Pilbara region, with the company’s latest update highlighting rapid progress in the refurbishment of its Golden Eagle mill and development across the emerging Beaton Creek mining area.

The company has deployed its operations team on a diverse range of projects as it eyes off its first gold pour at Nullagine. The ongoing development program ranges from the initiation of site works and grade control drilling at Beatons Creek through to the upgrading and maintenance of the Golden Eagle mill.

Novo also continues to make key appointments to the Nullagine production team with WA resources specialist Trevor Eddie taking on the role of Geology Manager and Nullagine stalwart, Leisa Nash assuming the mantle of Finance and Administration Manager. Both experienced WA operators are hoping to smooth Novo’s path to production in the coming months.

Novo Resources Chief Executive Officer, Rob Humphryson said:

“Novo is delighted with the rapid progress being made at Beatons Creek and the recently acquired Millennium infrastructure. We are assembling an experienced and enthusiastic operational team who have a sense that they are integral to pioneering a new era of conglomerate gold production in Western Australia.”

“This enthusiasm is being mirrored by our contracting partners, stakeholders and government regulators alike, with a growing awareness that this mineralization style has the potential to develop into a basin wide opportunity.”

TSX-listed Novo Resources is pioneering the development of conglomerate-hosted gold mineralisation in Western Australia’s Pilbara region. The Beaton Creek conglomerate discovery is located immediately to the west of the established gold mining centre at Nullagine, around 250km south-east of Port Hedland and is the first of Novo’s diverse range of projects across the Pilbara to be developed.

The Beaton Creek conglomerate gold deposits currently host close to 11 million tonnes of ore at a respectable 2.53 g/t gold, however recent work by the company indicates that these deposits have the potential for substantial and perhaps even exponential growth.

Exploration shows that the Beaton Creek deposits extend more than 1,600m along strike from the delineated resources, whilst a regional study shows these same auriferous sedimentary units have been intersected in regional drilling more than 3km away. The massive area surrounding the deposits will now become the focus of resource development work as the mine takes shape over the coming months. The current 900,000-ounce gold resource is now starting to look as though it may simply be the tip of the iceberg.

Novo has appointed Castle Drilling to undertake the grade control drilling program at Beaton Creek, whilst MinAnalytical Laboratories has been contracted to set up and run the company’s grade control and assay lab at Nullagine.

Elsewhere at Beaton Creek, Edwards Mining and Civil, who has a long association with the company due to its work at Novo’s nearby Egina project, is undertaking a raft of civil projects across the developing mine area. Edwards’ projects include preparing various sites for grade control drilling, establishment of access and mine haulage roads, building of an ore pad for the stockpiling of ores and site clearing for new buildings and infrastructure.

On the production front, the company has already whipped the covers off the Golden Eagle mill and is warming up the engines as it looks towards a return to production. Kalgoorlie Power Systems has recently reconnected the power to the site facilitating the company returning the mill, camp, and associated infrastructure to its former glory.

The refurbishment of the Golden Eagle mill is now underway with mining specialists, GR Engineering, or “GR” winning an AU$8.3 million contract to restore the mill to working order. GR has a solid work program in front of it including upgrading the gravity circuit to recover the nuggety gold from the conglomerate deposits, refurbishment of the leach tanks and general maintenance over the entire plant site – no small task but all in a day’s work for the GR’s highly experienced WA-based team.

Contractors Pilbara Resources Group are also on the job, refurbishing and upgrading the Nullagine offices and camp in preparation for the growing workforce which is now starting to gather onsite and champing at the bit to wake the operation from its slumber.

Novo is a company that has set itself on a path and is picking up the pace as it charges towards production from its conglomerate gold discoveries. With a development program at Nullagine gathering momentum, it is a busy time for the aspiring gold producer.  Given the pace of change, it wouldn’t surprise if Novo has a few more tricks up its sleeve in the led up to the company’s first gold pour in the months ahead.

 

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

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