06/11/2020 - 16:43

Novo uncovers Pilbara gold deposit extension

06/11/2020 - 16:43

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TSX-V-listed aspiring Pilbara gold producer, Novo Resources, has unearthed a new gold-bearing conglomerate reef discovery at its developing Beatons Creek gold project adjacent to Nullagine in the East Pilbara following a mapping and surface rock chip sampling program. The Vancouver-based company says the Skyfall prospect is situated about 2km south-west of the existing 900,000-ounce Beatons Creek conglomerate-hosted gold resource.

TSX-V-listed aspiring Pilbara gold producer, Novo Resources, has unearthed a new gold-bearing conglomerate reef discovery at its developing Beatons Creek gold project adjacent to Nullagine in the East Pilbara following a mapping and surface rock chip sampling program. As the Vancouver-based company accelerates towards gold production start-up, it says the Skyfall prospect signifies an extension to the Beatons Creek conglomerate gold system.

Skyfall is situated about 2km south-west of the existing Beatons Creek conglomerate-hosted open-pittable and underground gold resource. The Beatons Creek resource currently stands at an indicated and inferred 10.94 million tonnes going 2.65 grams per tonne for 903,000 ounces of contained gold and is within easy trucking distance to the recently acquired Nullagine gold treatment plant.

Skyfall has been delineated over a strike length of approximately 1.9km. According to Novo, it remains open to the west, adding weight to the company’s suggestion there is considerable upside potential to grow the Beatons Creek resource at surface and depth.

The C$740 million market-capped company has begun preparing its recently acquired Golden Eagle gold processing facility near Nullagine for a planned first gold pour next year with Beatons Creek providing the baseload ore feed.

GR Engineering has been engaged to refurbish and upgrade parts of the conventional gravity-CIL plant that was only mothballed in December last year. Acquired from Millennium Minerals, the facility is located about 10km south of Beatons Creek.

Early cash flows stemming from fast-tracking towards gold production courtesy of its recent approximate US$90 million equity and cash acquisition of Millennium are set to help propel Novo’s broader gold hunt in the Pilbara. The strategy is destined to underpin the company’s desire to progress exploration programs on numerous gold targets across its massive, approximately 14,000-square-kilometre tenement holdings in the Pilbara.

Novo, which has a cash balance of about C$50 million following a recent capital raise and a debt facility of US$35 million, is part of the pack leading the gold rush in the Pilbara minerals province.

Gold explorers, developers and would-be producers including Calidus Resources, Capricorn Metals, De Grey Mining, Caeneus Minerals, Aruma Resources, Castle Minerals, Kairos Minerals and others are also beating a path to this fertile terrane and kicking goals.

 

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

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