06/08/2021 - 15:34

Novo racks up another Pilbara gold production record

06/08/2021 - 15:34

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Novo Resources continues to churn out record production numbers at its Nullagine gold operations in Western Australia’s Pilbara, posting a massive 46 per cent increase above the June result. Revenue also surged 50 per cent over the previous month with 8,589 ounces of gold pumped out from the mill generating $19.2 million revenue. During the month the company also appointed Michael Spreadborough as its new executive co-chairman.

Gold in drill core. Credit: File

Novo Resources Corporation has churned out another monthly production record at its Golden Eagle mill in Western Australia’s Pilbara region. The mill produced 8,589 ounces of gold fed from the conglomerate-hosted gold reserves at the Nullagine gold project, for a massive 46 per cent increase above the June result. July revenue numbers also surged 50 per cent over the previous month with the company selling 7,899 ounces of gold for $19.2 million.

In July the mill processed 148,000 tonnes, closing in fast on its nameplate  processing capacity of 1.8 million tonnes per annum, or 150,000 tonnes per month.  Average recoveries also printed at a hugely impressive 95.2 per cent whilst the head grade also jumped to 1.94 grams per tonne gold from 1.45g/t gold in June.

Novo Resources Chief Executive Officer, Rob Humphryson said: “I’m delighted with the continuing positive trajectory of the Nullagine Gold Project as the team adjusts to mining and processing this completely new style of conglomerate gold mineralisation.”

The company is clearly warming to its task as it continues to rack up the records chalking up more than 68,000 grade control assays in July. Novo expects its backlog of samples will be cleared by the end of October 2021, utilising two of Intertek Testing Services’ Chrysos PhotonAssay machines.  Intertek have also been engaged to commission and onsite assaying facility.

The site-based sample preparation setup is well underway with the crusher, dryer and ducting work all complete with lab staff expected to arrive on site next week.  This will facilitate quicker turnaround times for results and also speed up mining activities.

Humphryson said: “The site team is functioning cohesively as they perfect the geological and mining methods required to underpin a sustained and successful operation.”

The company also announced the appointment of Michael Spreadborough as executive co-chairman who joined the company in January 2021 as an independent director.  According to Novo the change to the executive team structure will drive the next phase of its growth as a premier Pilbara gold explorer and producer.

Chairman and president of Novo, Dr Quinton Hennigh, said: “Michael brings a wealth of Australian resource industry operational experience and international executive public company experience with both TSX and ASX-listed issuers to Novo. As the Company transitions to steady state operations, Michael’s operational expertise and guidance will be invaluable.”

Hennigh is transitioning from his long-held role to be non-executive co-chairman of the company.  However he says he will remain actively involved with the exploration teams and continue to engage with shareholders and stakeholders.

Rob Humphryson continues as Chief Executive Officer and director.

While hitting all the production records, Novo has also kept the rods spinning with exploration work across a number of prospects within its huge 14,000 square kilometre Pilbara landholding. Near-mine exploration at the Nullagine gold project accelerated through June and July and plans are now afoot to test a series of high priority targets in the latter half of this year.

In July, the company commenced a reverse circulation drill program aimed at East Pilbara orogenic basement targets.  At the Talga Talga prospect, a mineralised corridor three kilometres long has been defined with bulk samples returning best grades of 81.4g/t gold, 46.9g/t gold and 25.1g/t gold.  The prospect is located 30km north of the town of Marble Bar within trucking distance of the mill at Nullagine.

With the boardroom now focussed on long-life production and the company boasting more than $50 million in the tin, Novo is taking all the right steps to make good on its promise of becoming the next significant Pilbara gold producer.

 

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

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