Novo Resources has regained full control of its expansive Egina gold project in Western Australia’s Pilbara region, after the $28 billion gold producer Northern Star Resources decided to walk away from its non-core exploration earn-in.
The deal sees the ground, which sits just 30 kilometres from Northern Star’s world-class Hemi gold project, revert to Novo, along with all the exploration data gathered by Northern Star during its tenure, providing a valuable leg-up for future work programs.
The earn-in agreement was originally struck with master explorers and Hemi discoverers De Grey Mining, which was subsequently acquired by Northern Star for $5 billion. Today’s withdrawal should not come as a big surprise, as Northern Star is a notorious underground miner and exploration is decidedly not its natural hunting ground.
However, Northern Star did meet the initial $7 million exploration expenditure requirement at Egina, before deciding to withdraw on its right to earn a 50 per cent interest in the project by spending an additional $18 million by mid-2027.
With Northern Star now stepping aside, Novo is free to plot its own course for the massive gold project.
Novo Resources executive co-chairman and acting chief executive officer Michael Spreadborough said: “The return to Novo of all Egina Gold Project data from Northern Star will allow our geological team to undertake a fresh assessment of Egina, its priority in our portfolio, and the best pathway to advance what we believe is an outstanding asset for a gold explorer.”
The Egina project is a regional gold belt play in the highly prospective Mallina Basin. Its appeal has always been its address, with Northern Star’s monster Hemi deposit, holding over 13.6 million ounces of gold just 28km along strike to the east-northeast.
The project area is characterised by shallow cover overlying the under-explored basin rocks, a geological setting that has proven immensely fruitful for its neighbours.
While the Egina news takes centre stage for now, Novo has also been busy across its broader Pilbara portfolio. The company recently wrapped up a 16-hole, 2628-metre reverse circulation (RC) drilling program at its Wyloo Southeast prospect, with the first batch of samples already at the lab.
That same RC rig is now on the move to its Cronus prospect, 23km south-east of Karratha, where the drill bit is scheduled to start turning next week.
The company also holds multiple high-grade gold prospects in the world-famous Bendigo region in Victoria, with its flagship Belltopper prospect just 60km southwest of the ultra-high-grade Fosterville mine operated by Agnico Eagle.
The region has historically delivered more than 60 million ounces and Belltopper is well-placed near established operations and infrastructure, including Kaiser Reef’s Maldon plant, 40km to the northwest and Alkane Resources’ Costerfield mine, 50km to the northeast.
Novo says the Egina handover has been both amicable and somewhat fortuitous, with Northern Star retaining a supportive strategic relationship through its remaining shareholding in the company.
With a fresh package of data from a major explorer in its hands and a renewed mandate to explore, the company now has a clear runway to reassess what could be one of the more interesting massive land packages in the Pilbara.
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By Andrew Todd
