Precious Metals

Novo Resources Corp. ( "Novo" or the "Company" ) (TSX: NVO, NVO.WT & NVO.WT.A) (OTCQX: NSRPF) reports its financial results for the six-month period ended June 30, 2022. All amounts are expressed in Canadian dollars, unless otherwise noted.

This news release should be read together with Novo's management's discussion and analysis (the " MD&A ") and condensed interim consolidated financial statements (the " Financial Statements ") for the six-month period ended June 30, 2022 (" H1 2022 ") which are available under Novo's profile on SEDAR (www.sedar.com). The three-month period ended June 30, 2022 is referred to as " Q2 2022 " in this news release.

Q2 2022 Highlights

  • Revenue of $29.7 million from the sale of 12,378 ounces of gold from the Company's Beatons Creek gold project (the " Beatons Creek Project ") in Q2 2022 at an average realized price 1 of $2,400 / A$2,635 / US$1,880 per ounce, and revenue of $61.6 million from the sale of 25,742 ounces of gold in H1 2022 in line with revised guidance 2 and at an average realized price 1 of $2,394 / A$2,618 / US$1,883
  • Cash and cash equivalents of $74.9 million as at June 30, 2022
  • Aggregate investment portfolio balance of $57.9 million 3 , which included Novo's remaining 6.75 million shares   of New Found Gold Corp. (TSXV: NFG) (" New Found ") with a fair value of $38.9 million ($5.77 per share) as at June 30, 2022
  • Novo sold 8.25 million shares of New Found at $8.35 per share for gross proceeds of $68.9 million during Q2 2022 (" Tranche 1 "), and completed the sale of its remaining 6.75 million shares of New Found at $8.45 per share for gross proceeds of $57.0 million subsequent to June 30, 2022 4 (" Tranche 2 "). A financial asset totaling $16.3 million was recognized as at June 30, 2022 and represents the Tranche 2 forward contract at the agreed price of $8.45 per New Found share
  • Continuing focus on high-priority exploration targets, with exploration spend of $11.4 million in Q2 2022 and $15.3 million in H1 2022, including $4.6 million on the Beatons Creek Project Fresh drill-out and feasibility study 5 which is expected to be completed in late 2022
  • $0.4 million was invested in capital projects during Q2 2022, and $2.3 million was invested in capital projects in H1 2022
  • Earnings before interest, taxes, depreciation and amortization (" EBITDA ") 1 of $(3.5) million and adjusted EBITDA 1 of $(21.8) million in Q2 2022, and EBITDA 1 of $(6.3) million and adjusted EBITDA 1 of $(25.3) million in H1 2022
  • Total cash costs 1 of $2,598 / A$2,852 / US$2,035 per ounce sold and all-in sustaining costs (" AISC ") 1 of $3,198 / A$3,510 / US$2,505 per ounce sold in Q2 2022, and total cash costs 1 of $2,307 / A$2,523 / US$1,815 per ounce sold and AISC 1 of $2,930 / A$3,204 / US$2,304 per ounce sold in H1 2022
  • Conversion of Sumitomo Corporation's notional interest in Novo's Egina project in the Pilbara region of Western Australia to an equity stake in Novo comprised of 3,382,550 Novo common shares representing a 1.36% shareholder on the date of issuance, with all shares subject to orderly sale restrictions and a twelve-month contractual hold period expiring on April 21, 2023 6
  • Production to pause at the Beatons Creek Project and the Golden Eagle processing facility (" Golden Eagle Plant "), with mining of the Oxide mineral resource ending in Q3 2022 followed by a phased wind-down of operational activities finishing by the end of October 2022 7

Financial Highlights

In thousands of CAD, For the three months ended For the six months ended
except where noted June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Gold sold Oz Au 12,378 13,958 25,742 17,456
Average realized price 1 $/oz 2,400 2,270 2,394 2,259
Average realized price 1 AUD$/oz 2,635 2,401 2,618 2,348
Average realized price 1 USD$/oz 1,880 1,849 1,883 1,811
Total revenue $ 29,685 31,704 61,560 39,422
Cost of goods sold $ (42,524 ) (31,704 ) (79,899 ) (39,422 )
General and exploration expenditure $ (14,904 ) (9,697 ) (22,943 ) (5,248 )
Other income, net $ 18,283 2,915 18,953 1,006
Finance items $ (7,157 ) (9,738 ) (7,220 ) (11,164 )
Income tax expense $ (2,198 ) - (2,198 ) -
Net loss for the period after tax $ (18,815 ) (16,520 ) (31,747 ) (15,406 )
Basic and diluted profit / (loss) per common share $/share (0.08 ) (0.07 ) (0.13 ) (0.07 )
EBITDA 1 $ (3,534 ) (3,099 ) (6,321 ) 2,862
Adjusted EBITDA 1 $ (21,817 ) (6,014 ) (25,274 ) 1,856
Adjusted loss 1 $ (37,098 ) (19,244 ) (50,700 ) (31,161 )
Adjusted loss per common share 1 $/share (0.15 ) (0.08 ) (0.20 ) (0.13 )
Total cash costs 1 $/oz 2,598 2,003 2,307 1,846
Total cash costs 1 AUD$/oz 2,852 2,118 2,523 1,919
Total cash costs 1 USD$/oz 2,035 1,631 1,815 1,481
AISC 1 $/oz 3,198 2,604 2,930 2,771
AISC 1 AUD$/oz 3,510 2,753 3,204 2,880
AISC 1 USD$/oz 2,505 2,120 2,304 2,222

Novo generated revenue of $29.7 million in Q2 2022 from the sale of 12,378 ounces of gold at an average realized price 1 of $2,400 / A$2,852 / US$1,880 per ounce, and $61.6 million in H1 2022 from the sale of 25,742 ounces of gold at an average realized price 1 of $2,394 / A$2,523 / US$1,883 per ounce in Q2 2022.

398,830 tonnes of mineralized material were processed through the Golden Eagle Plant in Q2 2022 equating to an annual processing rate of approximately 1.6 million tonnes per annum, and 793,212 tonnes of mineralized material were processed in H1 2022.

Processed material had an average head grade of 1.02 g/t Au with average recovery of 93.5% resulting in 12,610 ounces of gold produced in Q2 2022, and an average head grade of 1.09 g/t Au with average recovery of 92.5% resulting in 25,988 ounces of gold produced 8 in H1 2022.

The Company generated a net loss of $(18.8) million or $(0.08) per share in Q2 2022 and a net loss of $(31.7) million or $(0.13) per share in H1 2022.

EBITDA 1 totaled $(3.5) million in Q2 2022 ($(6.3) million in H1 2022), and adjusted EBITDA 1 totaled $(21.8) million in Q2 2022 ($(25.3) million in H1 2022).

Total cash costs 1 were $2,598 / A$2,852 / US$2,035 in Q2 2022 ($2,307 / A$2,523 / US$ 1,815 in H1 2022), and AISC 1 was $3,198 / A$3,510 / US$2,505 in Q2 2022 ($2,930 / A$3,204 / US$2,304 in H1 2022). Total cash costs 1 and AISC 1 are heavily influenced by the number of ounces of gold sold and are higher than anticipated due to, among other things, a lower production base than originally forecast.

Adjusted earnings (losses) 1 were $(37.1) million or $(0.15) per share in Q2 2022 and $(50.7) million or $(0.20) per share in H1 2022. Adjustments to net earnings (losses) for the period include minor non-operational income, non-cash foreign exchange gains, and non-cash gains resulting from the movement in the fair value of certain marketable securities.

The Company is committed to aggressively advancing its highly prospective exploration portfolio and devoted $11.4 million to such efforts in H1 2022. In addition, the Company is advancing the Beatons Creek project Fresh feasibility study and incurred $4.6 million through H1 2022, with an expected completion date in Q4 2022 5 .

Financial Position

In thousands of CAD, June 30, 2022 December 31, 2021 December 31, 2020
except where noted $'000 $'000 $'000
Cash 74,737 32,345 40,494
Short-term investments 147 108 195
Working capital 1 62,565 3,925 14,071
Credit Facility adjusted working capital (USD) 1 96,025 23,332 25,089
Marketable securities 1 57,905 156,209 18,770
Available liquidity 1 144,225 102,868 59,623
Total assets 385,322 462,682 456,408
Current liabilities excluding current portion of financial liabilities 18,454 19,805 12,083
Non-current liabilities excluding non-current portion of financial liabilities 33,248 36,342 28,615
Financial liabilities (current and non-current) 74,781 75,608 86,271
Total liabilities 132,795 148,420 126,969
Shareholders' equity 252,527 314,262 329,439

The Company held cash and cash equivalents of $74.9 million as at June 30, 2022, with a working capital 1 balance of $62.6 million. Tranche 1 settled for gross proceeds $68.9 million during Q2 2022. The Company's remaining 6.75 million shares, which represent a 4.02% undiluted stake in New Found, were classified as a current financial asset as at June 30, 2022 pursuant to Tranche 2 sale plans which settled in August 2022 and provided Novo with additional gross proceeds of $57.0 million 3 .

During Q2 2022, Sumitomo Corporation of Tokyo, Japan elected to convert its interest under the farmin and joint venture arrangement (the " Agreement ") over the Company's Egina project, and Novo elected to reimburse Sumitomo through the issuance of 3,382,550 common shares 9 with a fair value of $3.2 million based on the Company's closing price on April 21, 2022 of $0.96 as compared to Sumitomo's aggregate funding of A$7.8 million (approximately $7.2 million) through April 21, 2022.

Tax payable of $1.5 million represents the estimated capital gains tax payable in Canada on Tranche 1 after application of Novo's available Canadian tax losses. Deferred tax liabilities represent the Company's estimate of capital gains tax payable on the fair value of the Company's marketable securities. Approximately $6.4 million of this deferred tax liability relates to the capital gains tax payable on Tranche 2 and will be reclassified to tax payable during Q3 2022. The Company is in the process of determining its aggregate capital gains tax liability and intends to apply available tax losses in order to decrease any amount payable.

Sprott Resource Lending Corp. (" Sprott "), Novo's senior secured lender, waived any event of default which was triggered by Novo's recent operational pause at the Beatons Creek Project 7 in anticipation of full repayment of the US$40 million (currently approximately C$51.1 million) senior secured credit facility (the " Sprott Facility ") subsequent to completion of Tranche 2. Repayment of the Sprott Facility was completed on August 12, 2022 10 .

Outlook

The Company expects to produce 9 – 11 koz Au from the Beatons Creek Project in Q3 2022, with drawdown of inventory expected to add an additional 1 koz Au in Q4 2022 as Phase One Oxide operations at the Beatons Creek Project wind down through October 2022 11 . This forecast is subject to the Company's ability to manage the impact to operations from COVID-19.

Non-IFRS Measures

Certain non-IFRS measures have been included in this news release. The Company believes that these measures, in addition to measures prepared in accordance with International Financial Reporting Standards (" IFRS "), provide readers with an improved ability to evaluate its underlying performance and to compare it to information reported by other companies. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures presented by other companies.

Average Realized Price

The Company uses the average realized price per ounce of gold sold to better understand the gold price and, once applicable, cash margin realized throughout a period.

Average realized price is calculated as revenue from contracts with customers plus treatment and refinery charges included in dore revenue less silver revenue divided by gold ounces sold.

The following table reconciles this non-IFRS measure to the most directly comparable IFRS measure disclosed in the Financial Statements and MD&A.

In thousands of CAD, For the three months ended For the six months ended
except where noted June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Revenue from contracts with customers $ 29,685 31,704 61,560 39,422
Treatment and refining charges $ 69 51 175 98
Less: Silver revenue ( Note 17 of the Financial Statements ) $ (43 ) (70 ) (97 ) (89 )
Gold revenue $ 29,711 31,685 61,638 39,431
Gold sold oz 12,378 13,958 25,742 17,456
Average realized price $/oz 2,400 2,270 2,394 2,259
Foreign exchange rate CAD:AUD 1.0976 1.0575 1.0935 1.0396
Average realized price AUD$/oz 2,635 2,401 2,618 2,348
Foreign exchange rate CAD:USD 0.7834 0.8144 0.7865 0.8019
Average realized price USD$/oz 1,880 1,849 1,883 1,811

Total Cash Costs

The Company reports total cash costs on a per gold ounce sold basis. In addition to measures prepared in accordance with IFRS, such as revenue, the Company believes this information can be used to evaluate its performance and ability to generate operating earnings and cash flow from its mining operations. The Company uses this metric to monitor operating cost performance.

Total cash costs include cost of sales such as mining, processing, mine general and administrative costs, royalties, selling costs, and changes in inventories less non-cash depreciation and depletion, write-down of inventories and site share-based payments where applicable, and silver revenue divided by gold ounces sold to arrive at total cash costs per ounce of gold sold.

The following table reconciles this non-IFRS measure to the most directly comparable IFRS measure disclosed in the Financial Statements and MD&A.

In thousands of CAD, For the three months ended For the six months ended
except where noted June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Gold sold Oz Au 12,378 13,958 25,742 17,456
Total cash cost reconciliation
Cost of sales $ 42,524 31,704 79,899 39,422
Less: Depreciation and depletion* $ (10,322 ) (3,683 ) (20,404 ) (7,104 )
Less: Silver Revenue (Note 17 of the Financial Statements) $ (43 ) (70 ) (97 ) (89 )
Total cash costs $ 32,159 27,951 59,398 32,229
Cash costs per oz of gold sold $/oz 2,598 2,003 2,307 1,846
Foreign exchange rate CAD:AUD 1.0976 1.0575 1.0935 1.0396
Cash costs per oz of gold sold AUD$/oz 2,852 2,118 2,523 1,919
Foreign exchange rate CAD:USD 0.7834 0.8144 0.7865 0.8019
Cash costs per oz of gold sold USD$/oz 2,035 1,631 1,815 1,481

*Depreciation and depletion are reconciled to aggregate depreciation and depletion in the operating adjustments in the condensed interim consolidated statements of cash flows in the Financial Statements.

All-in Sustaining Costs

The Company believes that AISC more fully defines the total costs associated with producing gold. AISC is calculated based on the definitions published by the World Gold Council (" WGC "). The WGC is not a regulatory organization. The Company calculates AISC as the sum of total cash costs (as described above), sustaining capital expenditures (excluding significant projects considered expansionary in nature), accretion on decommissioning and restoration provisions, treatment and refinery charges, payments on lease obligations, site share-based payments where applicable, and corporate administrative costs less any share-based payments directly attributable to exploration and non-operating payments on lease obligations, all divided by gold ounces sold during the period to arrive at a per ounce amount.

Other companies may calculate this measure differently as a result of differences in underlying principles and policies applied. Differences may also arise due to a different definition of sustaining versus expansion capital.

The following table reconciles this non-IFRS measure to the most directly comparable IFRS measure disclosed in the Financial Statements and MD&A.

In thousands of CAD, For the three months ended For the six months ended
except where noted June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Gold sold Oz Au 12,378 13,958 25,742 17,456
All-in sustaining cost reconciliation
Total cash costs $ 32,159 27,951 59,398 32,229
Sustaining capital expenditures $ 807 - 2,693 -
Accretion on rehabilitation provision (Note 21 of the Financial Statements) $ 218 113 363 182
Treatment and refinery charges $ 69 51 175 98
Payments on lease obligations (Note 13 of the Financial Statements) $ 2,895 2,698 5,681 4,905
Less: non-operating payments on lease obligations* $ (119 ) (156 ) (231 ) (310 )
Site share-based compensation $ - - - -
Corporate administrative costs (Note 19 of the Financial Statements) $ 3,553 7,409 7,554 15,052
Less: exploration share-based payments** $ - (1,724 ) (213 ) (3,792 )
Total all-in sustaining costs $ 39,582 36,342 75,420 48,364
AISC per oz of gold sold $/oz 3,198 2,604 2,930 2,771
Foreign exchange rate CAD:AUD 1.0976 1.0575 1.0935 1.0396
AISC per oz of gold sold AUD$/oz 3,510 2,753 3,204 2,880
Foreign exchange rate CAD:USD 0.7834 0.8144 0.7865 0.8019
AISC per oz of gold sold USD$/oz 2,505 2,120 2,304 2,222

*The non-operating payments on lease obligations adjustment includes lease amounts which are not directly related to the Company's operations at the Beatons Creek Project. This figure is not separately disclosed in the Financial Statements.
**Share-based payment expenses directly attributable to the Company's exploration staff are excluded from the calculation of AISC. This figure is not separately disclosed in the Financial Statements and is a subset of the share-based payments expense outlined in Note 19 of the Financial Statements.

EBITDA

The Company uses EBITDA to better understand its ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.

EBITDA is defined as net earnings before interest and finance expense/income, current and deferred income tax expenses and depreciation and depletion. EBITDA is also adjusted for non-recurring transactions such as the change in fair value of derivative instruments, foreign exchanges gains and losses, gains and losses on the disposal of assets, impairment, and other income.

The following table reconciles this non-IFRS measure to the most directly comparable IFRS measure disclosed in the Financial Statements and MD&A.

In thousands of CAD, For the three months ended For the six months ended
except where noted June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
$'000 $'000 $'000 $'000
Net (loss) / profit for the period (18,815 ) (16,520 ) (31,747 ) (15,406 )
Interest and finance expense 7,340 9,750 7,413 11,184
Interest and finance income (183 ) (12 ) (193 ) (20 )
Current income tax expense / (income) (2,198 ) - (2,198 ) -
Deferred income tax expense - - - -
Depreciation and depletion* 10,322 3,683 20,404 7,104
EBITDA (3,534 ) (3,099 ) (6,321 ) 2,862
Other (income) / expenses (Note 22 of the Financial Statements) (18,283 ) (2,915 ) (18,953 ) (1,006 )
Adjusted EBITDA (21,817 ) (6,014 ) (25,274 ) 1,856

*Depreciation and depletion is reconciled to aggregate depreciation and depletion in the operating adjustments in the consolidated statements of cash flows in the Financial Statements.

Adjusted Earnings and Adjusted Basic and Diluted Earnings per Share

The Company uses adjusted earnings and adjusted basic and diluted earnings per share to measure its underlying operating and financial performance.

Adjusted earnings are defined as net earnings adjusted to exclude specific items that are significant, but not reflective of the Company's underlying operations, including: foreign exchange (gain) loss, (gain) loss on financial instruments at fair value, impairment, and non-recurring gains and losses on treatment of marketable securities, sale of exploration and evaluation assets, and associated tax impacts. Adjusted basic and diluted earnings per share are calculated using the weighted average number of shares outstanding under the basic and diluted method of earnings per share as determined under IFRS.

The following table reconciles this non-IFRS measure to the most directly comparable IFRS measure disclosed in the Financial Statements and MD&A.

In thousands of CAD, For the three months ended For the six months ended
except where noted June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Basic weighted average shares outstanding 248,541,466 236,525,772 248,293,389 233,849,893
Adjusted earnings and adjusted basic earnings per share reconciliation
Net loss for the period $ (18,815 ) (16,520 ) (31,747 ) (15,406 )
Adjusted for:
Other income (Note 22 of the Financial Statements) $ (18,283 ) (2,915 ) (18,953 ) (1,006 )
Profit on disposal of exploration asset $ - 191 - (14,749 )
Adjusted earnings $ (37,098 ) (19,244 ) (50,700 ) (31,161 )
Adjusted basic earnings per share $/share (0.15 ) (0.08 ) (0.20 ) (0.13 )

Available Liquidity

The Company believes that available liquidity provides an accurate measure of the Company's ability to liquidate assets in order to satisfy its liabilities. The Company uses this metric to help monitor its risk profile.

Available liquidity includes cash, short-term investments, and assets which are readily saleable within the next 12 months, including gold in circuit and stockpiles, receivables, marketable securities (to the extent that an established market exists for such marketable securities, they are free of any long-term trading restrictions, and sufficient historical volume exists to liquidate holdings within 12 months), and gold specimens. The market value of certain marketable securities has been used in the calculation of available liquidity which may not reconcile to the accounting treatment of such marketable securities. Refer to the MD&A and Notes 6 and 11 of the Financial Statements.

The following table reconciles this non-IFRS measure to the most directly comparable IFRS measure disclosed in the Financial Statements and MD&A.

June 30, 2022 December 31, 2021
$'000 $'000
Cash 74,737 32,345
Short-term investments 147 108
Gold in circuit 1,013 788
Stockpiles 6,569 4,732
Receivables 4,418 6,127
Marketable securities 40,987 58,691
Financial asset 16,281 -
Gold specimens 73 77
Available liquidity 144,225 102,868

Remainder of page intentionally left blank

June 30, 2022
# of shares Share price Foreign exchange Adjusted value
$'000
Kalamazoo Resources Limited Ordinary Shares 10,000,000 $ 0.16 0.889 1,422
GBM Resources Ltd Ordinary Shares 11,363,637 $ 0.06 0.889 617
New Found Gold Corp Common Shares * 6,750,000 $ 5.77 1 38,948
40,987


December 31, 2021
# of shares Share price Foreign exchange Adjusted value
$'000
Kalamazoo Resources Limited Ordinary Shares 10,000,000 $ 0.38 0.942 3,579
GBM Resources Ltd Ordinary Shares 11,363,637 $ 0.12 0.942 1,232
New Found Gold Corp Common Shares * 6,000,000 $ 8.98 1 53,880
58,691

*The December 31, 2021 figure represents the number of free-trading New Found common shares. The June 30, 2022 figure represents the Company's remaining New Found shares which were committed to be sold pursuant to Tranche 2 which completed on August 5, 2022.

Working Capital

Working capital is defined as current assets less current liabilities and is used to monitor the Company's liquidity.

The following table reconciles this non-IFRS measure to the most directly comparable IFRS measure disclosed in the Financial Statements and MD&A.

June 30, 2022 December 31, 2021
$'000 $'000
Current assets 148,388 49,385
Current liabilities 85,823 45,460
Working capital 62,565 3,925

Sprott Facility Adjusted Working Capital

Sprott Facility adjusted working capital is a derivation of working capital with a series of adjustments as permitted pursuant to the Sprott Facility. The Company uses Sprott Facility adjusted working capital to monitor its compliance against certain covenants within the Sprott Facility.

The following table reconciles this non-IFRS measure to the most directly comparable IFRS measure disclosed in the Financial Statements and MD&A.

In thousands of CAD, except where noted

June 30, 2022 December 31, 2021
$'000 $'000
Working capital $ 62,565 3,925
Credit Facility (current) $ 51,544 6,339
Lease liabilities (current) $ 7,987 12,453
Sumitomo funding liability $ - 5,780
Sumitomo written call option $ - 1,083
Sprott Facility working capital $ 122,096 29,580
Foreign exchange rate CAD:USD 0.7865 0.7888
Sprott Facility working capital USD$ 96,029 23,332

CAUTIONARY STATEMENT

The decision by the Company to produce at the Beatons Creek Project was not based on a feasibility study of mineral reserves demonstrating economic and technical viability and, as a result, there is an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit. Production has not achieved forecast to date. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that anticipated production costs will be achieved. Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and future profitability.

The Company cautions that its declaration of commercial production effective October 1, 2021 12 only indicates that the Beatons Creek project was operating at anticipated and sustainable levels and it does not indicate that economic results will be realized.

QP STATEMENT

Dr. Quinton Hennigh (P.Geo.) is the qualified person, as defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects , responsible for, and having reviewed and approved, the technical information contained in this news release. Dr. Hennigh is the non-executive co-chairman and a director of Novo.

ABOUT NOVO

Novo operates its flagship Beatons Creek Project while exploring and developing its prospective land package covering approximately 11,000 square kilometres in the Pilbara region of Western Australia. In addition to the Company's primary focus, Novo seeks to leverage its internal geological expertise to deliver value-accretive opportunities to its shareholders. For more information, please contact Leo Karabelas at (416) 543-3120 or e-mail leo@novoresources.com.

On Behalf of the Board of Directors,

Novo Resources Corp.

" Michael Spreadborough "

Michael Spreadborough

Executive Co-Chairman & Acting CEO

Forward-looking information

Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, that the Beatons Creek Project feasibility study is expected to be completed in Q4 2022, that mining of the Oxide mineral resource is expected to end in Q3 2022 followed by a phased wind-down of operational activities finishing by the end of October 2022, and the production forecast for the remainder of 2022. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, without limitation, customary risks of the resource industry and the risk factors identified in the MD&A which is available under Novo's profile on SEDAR at www.sedar.com. Forward-looking statements speak only as of the date those statements are made. Except as required by applicable law, Novo assumes no obligation to update or to publicly announce the results of any change to any forward-looking statement contained or incorporated by reference herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward-looking statements. If Novo updates any forward-looking statement(s), no inference should be drawn that the Company will make additional updates with respect to those or other forward-looking statements.

1 Non-IFRS measure; the definitions and reconciliations of these measures are included under "Non-IFRS Measures" below.
2 Refer to the Company's news release dated May 24, 2022 .

3 Novo's ability to dispose of its investments is subject to certain thresholds under the Sprott Facility (as defined below). Please refer to the MD&A which is available under Novo's profile on SEDAR at www.sedar.com . Novo's investment in New Found Gold Corp., which is included in the June 30, 2022 balance, was subject to escrow requirements pursuant to National Instrument 46-201 Escrow for Initial Public Offerings. The value of Novo's holdings in Elementum 3D, Inc. (" E3D ") is based on E3D's most recent financing price of US$8.00 per unit comprised of one common share and one-half of one common share purchase warrant. Except for its investment in E3D and warrant holdings, the fair value of Novo's investments is based on closing prices of its investments and relevant foreign exchanges rate as at June 30, 2022.
4 Refer to the Company's news release dated April 12, 2022 , April 27, 2022 , and August 5, 2022 .
5 Refer to the Company's news release dated June 14, 2022 .
6 Refer to the Company's news release dated April 21, 2022 .
7 Refer to the Company's news release dated June 14, 2022 .
8 Refer to the Company's news release dated July 6, 2022 .
9 Refer to the Company's news release dated April 21, 2022 .
10 Refer to the Company's news release dated August 12, 2022 .
11 Refer to the Company's news release dated June 14, 2022 .
12 Refer to the Company's news release dated October 12, 2021 .



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NVO.WT:CA
High-Quality Gold Targets Advanced at Purdy's North, Becher Area, and Nunyerry

High-Quality Gold Targets Advanced at Purdy's North, Becher Area, and Nunyerry

  • Comprehensive exploration update regarding large-scale exploration programs underway across Novo's highly prospective 11,000 sq km portfolio of Pilbara tenements ( Figure 1 ).
  • Purdy's North reverse circulation (" RC ") drilling is ongoing at the Morto Lago gold-copper target with drilling intersecting several zones of quartz-veining and alteration, with assays pending. Morto Lago is adjacent to Azure Minerals Limited's (" Azure ") Andover nickel-copper-cobalt discovery (" Andover ") and Artemis Resources Limited's (" Artemis ") Carlow Castle gold-copper-cobalt discovery (" Carlow Castle ").
  • Purdy's North RC drilling underway at the Milburn target, also adjacent to Andover and Carlow Castle, where the first three holes have highlighted a moderate dipping interpreted thrust fault with zones of pyrrhotite, chalcopyrite and pentlandite (visual identification confirmed by pXRF), with assays pending.
  • Several high priority West Pilbara targets including Southcourt, NRV06, and Bushmill nickel-copper targets are drill ready.
  • > 30,000 m aircore drilling program to commence this month in the Becher area within the Egina District testing multiple targets delineated along a significant mineralized corridor potentially extending to De Grey Mining Limited's (" De Grey ") Hemi gold discovery (" Hemi ").
  • High-order gold soil anomaly at Nunyerry North now extends over 1.4 km strike, with a second 1.2 km long soil anomaly at > 30 ppb gold defined south of the main target. Rock chip sampling returned peak high-grade results from quartz veins including 8.81 g/t gold, 7.39 g/t gold and 1.23 g/t gold . Further detailed mapping has defined additional swarms of quartz veins and specimen gold has been detected.
  • Over 20,000 m of RC drilling completed in near-mine exploration programs at the Nullagine Gold Project (" NGP ") in H1 2022, advancing several satellite prospects.
  • Reconnaissance programs commenced on regional districts in the East Pilbara with rock samples up to 94.7 g/t gold collected at Little Elsie .
  • Expansive high resolution aeromagnetic and radiometric geophysical survey programs completed across Purdy's North and Egina ( Becher area ) have advanced structural interpretation and geological understanding, and detailed ground gravity geophysical surveys at Egina and the Mosquito Creek Belt (" MCB ") have commenced.
  • Significant diamond drilling program totalling 3,162 m for 11 holes completed at the 50%-owned Malmsbury gold project (" Malmsbury Project ") joint venture with ASX-listed GBM Resources Ltd. (" GBM ") (ASX:GBZ), located 50 km SSW of the high-grade Fosterville gold mine in Victoria, Australia.
  • Additional significant results received to date from the Malmsbury Project program include 7.75 m @ 2.8 g/t gold from 87 m (MD15); 0.95 m @ 10 g/t gold from 102.65 m (MD17). Step-out hole MD22 successfully intercepted the Missing Link Monzogranite 80 m north of the gold-mineralized intrusive in MD17 1 . Gold and multi-element assays for MD20, MD21 and MD22 (final hole) are pending.
  • At the Malmsbury Project , close-spaced ground magnetic and ground gravity surveys are being designed to sharpen previously identified geophysical targets. An induced polarization (" IP ") survey is also planned to define sulphide rich granite-related targets and disseminated sulphide haloes around the high-grade gold reef targets.

https://www.globenewswire.com/NewsRoom/AttachmentNg/959b23ba-b5d4-422b-a9ec-84a337639b7f
Figure 1: Location map showing Novo Pilbara tenement holding with prospect type, location, and priority target areas labelled.

Novo Resources Corp. ( "Novo" or the "Company" ) (TSX: NVO, NVO.WT & NVO.WT.A) (OTCQX: NSRPF) is pleased to provide an exploration update on the Company's highly-prospective, multi-commodity portfolio of projects based in Western Australia and Victoria.

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Novo Completes Full Repayment and Retirement of US$40 Million Sprott Lending Credit Facility

Novo Completes Full Repayment and Retirement of US$40 Million Sprott Lending Credit Facility

Novo Resources Corp. ( "Novo" or the "Company" ) (TSX: NVO, NVO.WT & NVO.WT.A) (OTCQX: NSRPF) is pleased to advise that it has completed repayment of its senior secured US$40 million credit facility (" Credit Facility ") with Sprott Resource Lending Corp. (" Sprott ") subsequent to the completion of the sale of the Company's New Found Gold Corp. investment 1 . The Company is now free of long-term borrowings, with an unaudited consolidated cash balance of C$76.6 million.

The Company paid an aggregate amount of US$40,144,029 to Sprott in satisfaction of all amounts outstanding, including all accrued interest, on the Credit Facility. No early repayment penalties were paid. The Company is in the process of discharging all security previously granted to Sprott in connection with the Credit Facility.

ABOUT NOVO

Novo operates its flagship Beatons Creek project while exploring and developing its prospective land package covering approximately 11,000 square kilometres in the Pilbara region of Western Australia. In addition to the Company's primary focus, Novo seeks to leverage its internal geological expertise to deliver value-accretive opportunities to its shareholders. For more information, please contact Leo Karabelas at (416) 543-3120 or e-mail leo@novoresources.com .

On Behalf of the Board of Directors,

Novo Resources Corp.

" Michael Spreadborough "

Michael Spreadborough

Executive Co-Chairman and Acting CEO

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Drilling Commences on Purdy's North Gold and Nickel-Copper Targets

Drilling Commences on Purdy's North Gold and Nickel-Copper Targets

  • RC drilling has commenced at Purdy's North, testing a series of prospective gold and nickel-copper targets adjacent to Azure Minerals Limited's ( "Azure" ) Andover nickel-copper-cobalt discovery ( "Andover" ) and Artemis Resources Limited's ( "Artemis" ) Carlow Castle gold-copper-cobalt discovery ( "Carlow Castle" ).
  • Drilling program will start at the Milburn nickel-copper-gold and Morto Lago orogenic gold targets, as part of a large campaign testing multiple targets across the district.
  • Heritage surveys have been completed at Morto Lago, Milburn and the Southcourt prospects at Purdy's North and the Bushmill prospect in the Maitland Intrusion.
  • Additional targets for drilling include 47K, Thorpe, Bob's Well VHMS and the Bullock Park area. Work on these targets is awaiting final heritage clearance.
  • Geophysical Induced Polarisation ( "IP" ) and Fixed Loop Electromagnetic ( "FLEM" ) survey results used at several prospects to finesse high priority targeting from previous programs 1 .
  • High resolution aeromagnetic and radiometric survey across Purdy's North and the Bob's Well trend have enabled advances in structural interpretation and understanding geological setting.

Novo Resources Corp. ( "Novo" or the "Company" ) (TSX: NVO, NVO.WT & NVO.WT.A) (OTCQX: NSRPF) is pleased to provide an update on gold and nickel-copper targets at Purdy's North on EL471745 and on the Maitland Intrusion (EL473443) in the West Pilbara region of Western Australia. Purdy's North is adjacent to Azure Minerals Limited's ( "Azure" ) Andover VC-07 nickel-copper-cobalt massive sulphide discovery ( "Andover" ) and Artemis Resources Limited's ( "Artemis" ) Carlow Castle gold-copper-cobalt discovery ( "Carlow Castle" ). It should be noted that there is no certainty that EL471745 nor EL473443 contains the same levels of mineralization as either of these discoveries 1 .

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Beatons Creek Fresh Approvals Update

Beatons Creek Fresh Approvals Update

Novo Resources Corp. ( "Novo" or the "Company" ) (TSX: NVO, NVO.WT & NVO.WT.A) (OTCQX: NSRPF) advises that the Chair of the Western Australian Environmental Protection Authority (the " EPA ") has determined that the Company's approvals submission regarding the Fresh mineralization component of the Company's Beatons Creek gold project (" Beatons Creek ") does not require assessment under Part IV of the Western Australian Environmental Protection Act 1986 .

The Company will now promptly initiate discussions with the Western Australian Department of Mines, Industry Regulation and Safety (" DMIRS ") to seek approval to mine the Beatons Creek Fresh mineral resource. The Company expects to transition to Phase Two mining of the Beatons Creek Fresh mineral resource upon receipt of requisite approval from DMIRS and a make final investment decision post receipt of results of the feasibility study 1 .

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Nullagine Gold Production Update

Nullagine Gold Production Update

  • No lost-time injuries were recorded during Q2 2022 or H1 2022
  • Q2 2022 production of 12,610 oz Au, which totals 25,988 oz Au for H1 2022 and is in line with revised guidance0F 1
  • Q2 2022 revenue of C$29.7 million (A$32.6 million)1F 2 from the sale of 12,378 oz Au
  • Q3 2022 production forecast of 9 – 11 koz Au, with drawdown of inventory expected to add an additional 1 koz Au in Q4 2022 as Phase One Oxide operations at Beatons Creek wind down through October 2022 1
  • Cash balance as at June 30, 2022 of C$74.8 million 2 , which will support ongoing and extensive exploration programs and completion of resource and extension drilling at the Beatons Creek Fresh mineral resource 1
  • Novo still awaiting a response from the Western Australian Environmental Protection Authority on requisite approval pathway to commence Phase Two operations of the Fresh mineral resource at Beatons Creek 1
  • Beatons Creek Fresh mineral resource feasibility study progressing as planned and expected to be completed in Q4 2022 3

Table 1: Key Operational and Financial Figures 2

Q4 2021 Q1 2022 Q2 2022
Mining (tonnes) 434,133 395,824 421,981
Processing (tonnes) 395,310 394,382 398,830
Grade (g/t Au) 1.16 1.15 1.02
Recovery (%) 91.5% 91.4% 93.5%
Gold Production (oz Au) 12,833 13,378 12,610
Revenue (C$M) $29.9 $31.9 $29.7
Cash and Cash Equivalents (C$M) $32.5 $22.0 $74.8

Novo Resources Corp. ( "Novo" or the "Company" ) (TSX: NVO, NVO.WT & NVO.WT.A) (OTCQX: NSRPF) provides a 2022 second quarter (" Q2 2022 ") operational update from the Beatons Creek gold project (" Beatons Creek ") and the Golden Eagle processing facility (" Golden Eagle Plant "), located in Nullagine, Western Australia.

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CORRECTION FROM SOURCE: Steppe Gold Announces Gold Prepayment Facility

CORRECTION FROM SOURCE: Steppe Gold Announces Gold Prepayment Facility

This document corrects and replaces in its entirety the previous release that was issued by Steppe Gold Limited earlier today, where it should have read, "The Triple Flag Gold Prepay Facility will be repaid over 6 months starting December 23, 2022 by six monthly deliveries of 500 oz of gold for a total of 3,000 oz." instead of  "December 23, 2023." The corrected release is found below and all other content within this release is unchanged:

Steppe Gold Limited (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) ("Steppe Gold" or the "Company") is pleased to announce that it has entered into an agreement with Triple Flag International Ltd ("Triple Flag") for a short-term gold prepay facility (the "Triple Flag Gold Prepay Facility").

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Red Pine Closes C$5.5 Million Bought Deal Financing

Red Pine Closes C$5.5 Million Bought Deal Financing

/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES /

All monetary amounts are expressed in Canadian Dollars, unless otherwise indicated.

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Steppe Gold Announces Gold Prepayment Facility

Steppe Gold Announces Gold Prepayment Facility

 Steppe Gold Limited (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) ("Steppe Gold" or the "Company") is pleased to announce that it has entered into an agreement with Triple Flag International Ltd ("Triple Flag") for a short-term gold prepay facility (the "Triple Flag Gold Prepay Facility").

One of the consequences of the zero covid policy in China and the attendant China/Mongolia border closures has been a shortage of available US dollars with banks in Mongolia. Steppe Gold sales revenue is received in Mongolian Tugrik. While most of its operating costs are also paid in local currency, we require US dollars to acquire reagents and to fund deliveries to Triple Flag. The Triple Flag Gold Prepay Facility allows Steppe Gold to continue to meet all of its obligations during this temporary market disruption.

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New Break Identifies High-Grade Gold, up to 70.60 g/t Au, via Grab Sampling at Moray

New Break Identifies High-Grade Gold, up to 70.60 g/t Au, via Grab Sampling at Moray

New Break Resources Ltd. ("New Break" or the "Company") (CSE: NBRK) is pleased to report the results of grab and channel sampling programs conducted from June to August 2022, at its 100% owned Moray property ("Moray") located approximately 49 km south of Timmins, Ontario and 32 km northwest of the Young-Davidson Gold Mine operated by Alamos Gold Inc. Gold mineralization at Moray occurs in second order structures interpreted as splays off the Cadillac Larder-Lake Fault Zone, part of the famous Abitibi greenstone belt.

New Break engaged Orix Geoscience Inc. ("Orix") to oversee the grab and channel sampling programs and complete detailed structural mapping of the Voyager and Fiset areas, which included taking 74 grab samples from various areas of the Moray property, including in and around the historical Trench 12, stripped by SGX Resources Ltd. ("SGX") in 2012 at the Voyager showing ("Trench 12"). The highest-grade grab sample of 70.60 grams per tonne gold ("g/t Au") was located at the south end of the main Trench 12. Five samples from New Break's program yielded assays higher than the highest 21.8 g/t Au assay from the 2012 SGX prospecting and trenching program.

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Puma Exploration Hits Multiple High-Grade Gold Intercepts at Williams Brook

Puma Exploration Hits Multiple High-Grade Gold Intercepts at Williams Brook

Puma Exploration Inc. (TSX-V: PUMA, OTCQB: PUMXF) (the "Company" or "Puma") is pleased to announce the results from its 2022 drilling program at its 100%-owned Williams Brook Gold Project in Northern New Brunswick. Every hole intersected gold-bearing quartz veins with some returning additional high-grade intersections such as 14.90 gt Au over 3.60 m in hole WB22-96 and 10.96 gt Au over 3.75 m in hole WB22-91 . High-grade intersections are typically included within a wider gold intersection such as 2.17 gt Au over 25.10 m in WB22-96 and 2.00 gt over 21.95 m in WB22-94 (see Figure 1).

FIGURE 1: High-grade gold drilling intersections and surface grab samples at the Lynx Gold Zone ( latest assay results in yellow )

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Bathurst Metals Corp. Obtains Water Permit for Diamond Drilling the Turner Lake Project, Nunavut, Canada

Bathurst Metals Corp. Obtains Water Permit for Diamond Drilling the Turner Lake Project, Nunavut, Canada

(TheNewswire)

Bathurst Metals Corp

VANCOUVER, BRITISH COLUMBIA TheNewswire - September 29, 2022 Bathurst Metals Corp. ( the "Company") (TSXV:BMV) (OTC:BMVVF) announces it has been awarded the required water permit for diamond drilling on the Turner Lake Project.

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