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.

" Q2 2022 and H1 2022 have been critical periods for Novo, " commented Mr. Mike Spreadborough, Novo's Executive Co-Chairman, Acting CEO, and director. " Despite operational setbacks with the Golden Eagle Plant in late May 4 and the decision to pause operations at Beatons Creek, our safety and operational performance has been excellent, which is a credit to our operations team. As outlined in our recent operations update 1 , we have a detailed growth plan in place and are focused on delivering the feasibility study in Q4 2022, continuing aggressive exploration, and working with government on the approvals to restart Beatons Creek. "

BEATONS CREEK PROJECT

Safety and COVID-19 Update

During Q2 2022 and H1 2022, Novo did not record any lost time injuries.

The Company is still experiencing impacts from COVID-19, particularly with respect to its workforce; mandatory isolation for positive personnel and close contacts is temporarily impacting staffing levels for the Company and its contractors. Supply chain issues are resulting in elevated production costs, particularly with respect to fuel and other consumables, however best efforts have been made to mitigate the impacts of the pandemic through the adoption of sound risk management processes. The Company intends to manage such impacts throughout remaining operations at Beatons Creek but remains cautious that they may also affect other aspects of the Company's business, including exploration activities.

Operations

422 kt of mineralized material were mined from the Edwards and Gold Crown areas of Beatons Creek ( refer to Figure 1   and Figure 2   below ). Backfilling of the Grant's Hill pit will be completed in compliance with environmental requirements during the pause in operations 1 (refer to Figure 3   below )

https://www.globenewswire.com/NewsRoom/AttachmentNg/cdee5a37-a124-4e4c-a916-1c2f554a7b4f  
Figure 1: Gold Crown mining areas (Looking North).

https://www.globenewswire.com/NewsRoom/AttachmentNg/c2201e01-eeb7-4df6-bb99-5f4ab28abb4c  
Figure 2: Edwards mining area (looking South-East).

https://www.globenewswire.com/NewsRoom/AttachmentNg/392ccb19-7acf-45ba-9e8e-807494532caa  
Figure 3: Grant's Hill pit with requisite backfilling complete.

The Golden Eagle Plant processed 399 kt in Q2 2022, with an average head grade of 1.02 g/t Au.

Gold production totalled 12,610 ounces and recovery rates of approximately 93.5% were achieved in Q2 2022.

The Company expects to produce 9 – 11 koz Au in Q3 2022 and an additional 1 koz Au via the drawdown of inventory through October 2022 1 , assuming the Company's ability to manage any impact to operations from COVID-19.

Novo Financial Position

Novo's cash balance as at June 30, 2022 was C$74.8 million 2 .

In addition to its existing cash reserves, the Company has an investment portfolio with a fair value of approximately C$58 million as at June 30, 2022 5 . This includes the Company's 6.75 million remaining shares of New Found Gold Corp. which the Company has agreed to sell to Eric Sprott, the closing of which is scheduled to occur in August 2022 6 .

Q2 2022 gold sales totalled 12,378 ounces of gold and 1,502 ounces of silver for gross revenue of C$29.7 million (A$32.6 million) 2 . Novo sells its gold in Australian dollars to ABC Refinery of Sydney, Australia and continues to enjoy strong gold price performance in Australian dollar terms.

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.

CAUTIONARY STATEMENT

The decision by the Company to produce at Beatons Creek 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 7 only indicates that Beatons Creek was operating at anticipated and sustainable levels and it does not indicate that economic results will be realized.

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

Forward-looking information

Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, that Novo will produce 9 – 11 koz Au in Q3 2022 and an additional 1 koz Au in Q4 2022 from the drawdown of inventory, that Novo's cash balance will support on-going exploration programs and completion of resource and extension drilling at the Beatons Creek Fresh mineral resource, that the feasibility study is expected to be completed in Q4 2022, that Novo intends to manage the impacts of COVID-19 throughout remaining operations at Beatons Creek, and that Novo expects to complete the sale of its 6.75 million shares in New Found Gold Corp. to Eric Sprott in August 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 Novo's management's discussion and analysis for the three-month period ended March 31, 2022, 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
Refer to the Company's news release dated June 14, 2022 .
2 These financial figures are unaudited and may differ from final results due to foreign exchange and rounding differences.
3 Refer to the Company's news release dated June 14, 2022 .
4 Refer to the Company's news release dated May 24, 2022 .
5 This value excludes the fair value of warrants held in GBM Resources Ltd. Novo's ability to dispose of its investments is subject to certain thresholds pursuant to its senior secured credit facility with Sprott Private Resource Lending II (Collector), LP. Please refer to the Company's management discussion and analysis for the three months ended March 31, 2022, which is available under Novo's profile on SEDAR at www.sedar.com . Novo's investment in New Found Gold Corp. is 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. Except for its investment in E3D, 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.
6 Refer to the Company's news release dated April 12, 2022 and April 27, 2022 , as well as the Company's management discussion and analysis for the three-month period ended March 31, 2022 which is available on the Company's profile on SEDAR at www.sedar.com .
7 Refer to the Company's news release dated October 12, 2021 .


Primary Logo

News Provided by GlobeNewswire via QuoteMedia

NVO.WT:CA
The Conversation (0)
Significant Results From Malmsbury Victorian Projects Exploration Update

Significant Results From Malmsbury Victorian Projects Exploration Update

HIGHLIGHTS

  • New exciting high-grade assay results received from the 11-hole, 3,162 m diamond drilling program recently completed at the 50%-owned Malmsbury gold project (" Malmsbury Project ") located 50 km SSW of the high-grade Fosterville gold mine in Victoria, Australia.
  • Significant results generated from the last two holes drilled in the program at Queens Birthday (MD20) and Leven Star (MD21) reefs include:
    • 3.1 m @ 9.27 g/t Au from 400.9 m (MD20);
    • 8.1 m @ 5.79 g/t Au from 131.9 m (MD21); and
    • 6.2 m @ 3.92 g/t Au from 144.6 m (MD21).
  • Step-out hole MD22 returned 45 m @ 0.23 g/t Au from 134 m successfully intersecting the gold-mineralised felsic intrusive (Missing Link Monzogranite) 80 m north of previous reported drilling (MD17 1 ).
  • These new results together with previously released results affirm the success of this drilling program and support the exploration potential of the Malmsbury Project.
  • Induced polarization (" IP ") survey commenced on the Malmsbury Project and adjacent 50%-owned Queens gold project (" Queens Project "). Ground gravity and magnetic data to be collected concurrently with the IP survey. Novo expects this will take approximately six weeks to complete.
  • Diamond drilling planned for H1 2023 will test remaining high-priority mapping targets at the Malmsbury Project, in addition to developing high-grade shoot potential on the Leven Star Reef and key significant results from the recent diamond drilling campaign.

Novo Resources Corp. ( "Novo" or the "Company" ) (TSX: NVO, NVO.WT & NVO.WT.A) (OTCQX: NSRPF) is pleased to provide an exploration update from the 50%-owned Malmsbury Project (RL006587) and adjacent 50%-owned Queens Project (EL007112), located approximately 50 km SSW of the high-grade Fosterville mine in Victoria, Australia (Figure 1). The Malmsbury Project is a joint venture with ASX-listed GBM Resources Ltd. (ASX:GBZ) (" GBM ") and the Queens Project is a joint venture with ASX-listed Kalamazoo Resources Ltd. (ASX:KZR) (" Kalamazoo ").

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Novo Releases Inaugural Sustainability Statement

Novo Releases Inaugural Sustainability Statement

Novo Resources Corp. ( "Novo" or the "Company" ) (TSX: NVO, NVO.WT & NVO.WT.A) (OTCQX: NSRPF) is pleased to announce that it has published its inaugural sustainability statement (the " Statement ") for the 12-month period ended June 30, 2022.

The Statement is available on the Company's website .

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Novo Reports Q3 2022 Financial Results

Novo Reports Q3 2022 Financial Results

Novo Resources Corp. ( "Novo" or the "Company" ) (TSX: NVO, NVO.WT & NVO.WT.A) (OTCQX: NSRPF) reports its financial results for the nine-month period ended September 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 nine-month period ended September 30, 2022 (" YTD 2022 ") which are available under Novo's profile on SEDAR (www.sedar.com). The three-month period ended September 30, 2022 is referred to as " Q3 2022 " in this news release.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Beatons Creek Updated Mineral Resource Estimate

Beatons Creek Updated Mineral Resource Estimate

Novo Resources Corp. ( "Novo" or the "Company" ) (TSX: NVO, NVO.WT & NVO.WT.A) (OTCQX: NSRPF) announces an updated Mineral Resource estimate (the " 2022 MRE ") for the Beatons Creek gold project (" Beatons Creek ") located in the Nullagine region of Western Australia. The 2022 MRE incorporates extensive reverse circulation ( "RC" ) drilling completed between January 2020 and May 2022. The effective date of the 2022 MRE is June 30, 2022. A Technical Report (as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects (" NI 43-101 ")) in respect of the 2022 MRE will be filed under the Company's SEDAR profile upon its completion.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Standout Results From Becher Aircore Drilling Along Trend From Hemi Gold Deposit

Standout Results From Becher Aircore Drilling Along Trend From Hemi Gold Deposit

HIGHLIGHTS

  • Standout gold results have been intersected on the southern Irvine Shear corridor including 20 m @ 0.67 g/t Au , as part of the current aircore drilling program at the high priority Becher   Area in the Egina District.
  • Over 650 shallow aircore holes for 16,500 m of the > 30,000 m program have been completed.
  • The aircore program will test multiple structural and intrusive targets along a series of significant mineralized corridors, some interpreted to extend to De Grey Mining Limited's (" De Grey ") Hemi gold deposit within the Mallina gold project (" Hemi ").
  • Several additional quartz veined, large-scale sericite-silica-sulphide alteration zones have been identified from drilling across the Irvine and Whillans Shear corridors, with assays pending.
  • Deeper reverse circulation (" RC ") drilling will commence in November 2022, designed to follow-up significant aircore results and test discrete drill targets within the Becher Area.
  • Numerous targets have been enhanced or newly identified from a recent high resolution aeromagnetic and radiometric survey, coupled with detailed ground gravity surveys which have advanced structural interpretation and geological understanding.
  • Two heritage surveys were recently completed, enabling infill and extensional aircore drilling traverses and RC drilling to be completed for the remainder of 2022 and first half of 2023.
  • Initial results from the Becher Area, combined with previously reported results from Nunyerry North 1 , reconfirm potential for the Egina District to be a standalone gold production hub.

" Our first aircore drill results have yielded strong gold results at the Becher Area, " commented Dr. Quinton Hennigh, Non-Executive Co-Chairman of Novo, " indicating that the Whillans and Irvine shear zones are indeed prospective for deposits similar to those at De Grey's adjacent Mallina project. Aircore drilling, a means of rapid, shallow drilling widely used across Australia as a first pass means of testing new areas for mineralization, is proving highly effective at Becher. Several large-scale anomalies are emerging, the largest of which is 650m across and situated along the southern Irvine shear zone. Alteration assemblages, lithologies, geochemical associations and size of these mineralized areas are similar to those observed in other nearby large gold discoveries. Although we have lots more drilling to complete and results to come in, the anomalies suggest that deeper drill testing is required. "

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Zodiac Gold Announces Closing of First Tranche of Non-Brokered Private Placement

Zodiac Gold Announces Closing of First Tranche of Non-Brokered Private Placement

Zodiac Gold Inc. (TSXV: ZAU) ("Zodiac Gold" or the "Company"), a West-African gold exploration company, is pleased to announce that, further to the Company's news release dated November 20, 2024, it has closed its first tranche of its previously announced private placement (the "Offering") for gross proceeds of approximately C$123,000 (the "First Tranche"). The net proceeds of the First Tranche will be used for exploration of the Company's Todi gold project and for working capital purposes.

Pursuant to the First Tranche closing of the Offering, the Company issued 1,230,000 units of the Company (each a "Unit") at a price of C$0.10 per Unit. Each Unit consists of one common share of the Company (each, a "Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder thereof to acquire one additional Common Share (a "Warrant Share") at a price of C$0.15 per Warrant Share until the date which is 24 months following the closing date of the First Tranche of the Offering.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Element79 Gold Corp. Announces Grant of Management Cease Trade Order

Element79 Gold Corp. Announces Grant of Management Cease Trade Order

(TheNewswire)

Element79 Gold Corp.

Vancouver, January 2, 2025 TheNewswire - Element79 Gold Corp. ( CSE:ELEM ) ( OTC:ELMGF ) (FSE:7YS) ("Element79 Gold", or " the Company") announces today that due to timing delays related to changing auditors, it has miss ed its filing deadline of December 30, 2024 for its audited annual financial statements and accompanying M anagement's D iscussion and A nalysis as well as the related CEO and CFO certificates for the year ended August 31, 2024 (collectively, the "Annual Filings"), as required under applicable Canadian securities laws.

News Provided by TheNewsWire via QuoteMedia

Keep reading...Show less
Lode Gold Closes $350,000 Financing

Lode Gold Closes $350,000 Financing

Lode Gold Resources Inc. (TSXV: LOD) (OTCQB: SBMIF) ("Lode Gold " or the "Company") is pleased to announce it has closed $350,000 financing, previously announced on December 12, 2024. A total of 1,944,444 units at $0.18 per unit (each, a "Unit") been issued.

Each $0.18 unit shall consist of one common share and one common share purchase warrant. Each warrant shall entitle the holder to purchase one common share at an exercise price of $0.35 per common share for a period of three years following the date of closing.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Lode Gold Announces $350,000 Non-Brokered Financing

Lode Gold Announces $350,000 Non-Brokered Financing

Lode Gold Resources Inc. (TSXV: LOD) (OTCQB: SBMIF) ("Lode Gold " or the "Company") is pleased to announce a non-brokered financing for $350,000 by issuing 1,944,444 units at $0.18 per unit.

Each $0.18 unit shall consist of one common share and one common share purchase warrant. Each warrant shall entitle the holder to purchase one common share at an exercise price of $0.35 per common share for a period of three years following the date of closing.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Element79 Announces Payment Extension Agreement for Lucero Project

Element79 Announces Payment Extension Agreement for Lucero Project

(TheNewswire)

Element79 Gold Corp.

Monday, December 23, 2024 - Vancouver, BC TheNewswire - Element79 Gold Corp. (CSE: ELEM, FSE: 7YS0, OTC: ELMGF) ("Element79 Gold" or "the Company") is pleased to announce that it has entered into an Amending Agreement with Condor Resources Inc. ("Condor") to modify the terms of the payment due under the Original Agreement for the Lucero Project in Peru. The extension provides a strategic framework for the Company as it advances its flagship gold and silver asset.

News Provided by TheNewsWire via QuoteMedia

Keep reading...Show less
Opawica Announces the Closing of Non-Brokered Private Placement

Opawica Announces the Closing of Non-Brokered Private Placement

(TheNewswire)

Opawica Explorations Inc.

December 20th, 2024 Vancouver, B.C. TheNewswire - Opawica Explorations Inc. (TSXV: OPW) (FSE: A2PEAD) (OTCQB: OPWEF) (the "Company" or "Opawica"), a Canadian mineral exploration company focused on precious and base metal projects, is pleased to announce that it has closed the recently announced private placement (December 17, 2024) of 4,330,00 Units for total aggregate proceeds of CAD $1,082,500 each consisting of one flow through Share of the Company and one half Common Share Purchase Warrant at a price of $0.25 per Unit.

News Provided by TheNewsWire via QuoteMedia

Keep reading...Show less

Latest Press Releases

Related News

×