Novo Resources

Overview

Novo Resources Corp (TSXV:NVO) is a gold exploration and development company with a pipeline of conglomerate gold projects in Western Australia’s Pilbara gold region. The state of Western Australia is a Tier 1 mining district, representing 70 percent of the total gold output in a nation which ranks as the second largest gold producer in the world.

Novo Resources’ 2017 discovery of near-surface conglomerate gold over impressive strike lengths at Purdy’s Reward kicked off a staking rush in the Pilbara Craton. The Pilbara area hosts numerous small mesothermal gold deposits containing conglomerate gold — mineralization known to hold large, high-grade gold nuggets. The discovery also attracted the attention of Kirkland Lake Gold, now a major investor in Novo Resources as is Kirkland’s former Chairman Eric Sprott.

Today, Novo Resources’ Pilbara gold portfolio includes of the production-ready Beatons Creek project, the advanced-stage Egina gold project, the Karrantha gold project which hosts Purdy’s Reward and additional projects such as Talga Talga and Contact Creek. In August 2020, the company announced the acquisition of Millennium Minerals, which has assets located 10 kilometers south of the Beatons Creek project. The newly acquired property features processing infrastructure necessary to accelerating Novo’s planned transition to a producing gold company.

“By picking up the mill, we’re able to move Beatons Creek into production in the near-term which will give us the cash flow to continue aggressively advancing Egina to production as well as allowing some of our more dormant projects to really come to life,” said Novo Resources Chairman and President Dr. Quinton Hennigh. “Going forward, investors can expect to see a lot more news flow concerning how Novo plans to build its resource base and put together a production profile out of our current assets across the Pilbara region.”

Novo Resources is led by a team of mining professionals with the rare combination of in-house exploration and development expertise needed to bring top notch projects through to production, unlocking significant value for investors. Dr. Hennigh is an economic geologist with decades of gold exploration experience. While with Gold Canyon Resources, he led exploration at the a 5-million-ounce Springpole alkaline gold project near Red Lake Ontario. Novo CEO Rob Humphryson is a mining engineer with decades of experience in the Australian mining industry, including underground and open pit mining operations from both a contractor and miner’s perspective.

Pilbara’s conglomerate gold represents a rewarding challenge for the right team. The coarse, nugget effect of this gold deposit type needs an ideal combination of mining ingenuity and expertise to achieve potentially significant high-grade gold production. Novo believes it has the sorting technology and technical know-how to make it happen. “We’re not afraid of tackling coarse gold deposits and have developed the in-house methodology to evaluate coarse gold deposits,” said Hennigh. “We’re probably the only gold company to be exclusively focused on producing high-grade gold concentrate using mechanical sorting.”

Novo Resources’ Company Highlights

• Large portfolio of gold projects in Tier 1 mining jurisdiction known for significant gold production.
• Flagship project Beatons Creek is production-ready.
• Significant news flow expected throughout 2020/2021.
• Recent acquisition of processing infrastructure represents a catalyst to fast track the company to producer status.
• Unicorn management team with the expertise to take projects from exploration through to production.
• Developed in-house methodology (mechanical sorting) for tackling the challenge of coarse, nugget effect conglomerate gold with the potential to produce high-grade gold concentrate.
• Expecting to receive KSS 100F LIXT fine mechanical sorting unit from Steinert Global for use at project sites during the 2020 field season.
• Strategic financial partnership with Sumitomo Corporation.
• Major shareholders include Kirkland Lake Gold (15.83 percent), Eric Sprott (12.2 percent) and Newmont Gold (3.15 percent).
• The company recorded monthly gold production of 8,589 oz Au in July, a 46 percent increase over June, and sales of 7,899 ounces of gold in the same month, generating revenue of C$17.8 million, a 50 percent increase over June 2021.