Resource World Magazine

j u n e / j u l y 2 0 1 5 www.resourceworld.com 37 a u s t r a l i a n u p d at e G r e g B a r n s novo resources finds gold in Western australia When you think of the Pilbara region of northwest Western Australia, iron ore springs to mind. But Novo Resources [NVO-CSE; NSRPF-OTCQX] wants you to think of this famous region as a gold producing area. The company is develop- ing two gold plays in the Pilbara: Beatons Creek and Marble Bar. In a recent presen- tation, Novo noted that the "rocks of the Hamersley Basin [located in the Pilbara] share many similarities with those of the Witwatersrand Basin in South Africa, host to the largest gold field on Earth." In March this year, Novo entered a sales agreement with former JV partner Millennium Minerals [MOY-ASX] to acquire 100% of three mining leases cover- ing the Beatons Creek Project area. During 2014, Novo Resources worked with Newmont Mining Corp. [NEW- NYSE], using the latter's BLEG technique, a type of stream sediment sampling with high sensitivity that allows for rapid screening of large tracts of land for the presence of outcropping gold mineraliza- tion. Ten anomalous areas displaying gold were identified in the Beatons Creek and Marble Bar areas. Inferred resources at Beatons Creek are 421,000 oz grading 1.47 g/t gold. Novo is targeting shallow, oxidized gold-bearing conglomerate horizons in an area covering about 4 km 2 . In late 2014 and earlier this year the company carried out an exten- sive costean, or trench, bulking sampling program. The work is designed to gather sufficient data to define a 3-4 million tonne resource that could be developed into a 1,000-1,500 tonne-per-day, low cost, mine. On April 21, Novo reported results that include 0.6 metres of 7.13 g/t gold, 0.9 metres of 6.17 g/t gold, 0.9 metres of 7.21 g/t gold and 1.0 metre of 10.21 g/t gold fol- lowed by 1.0 metre of 25.53 g/t gold, 1.0 metre of 12.79 g/t and 0.7 metres of 11.24 g/t gold. Novo Resources President and CEO, Dr. Quinton Hennigh, says that given the results of the sampling program are "dis- tributed widely across the oxide resource target area, we can conclude we have good continuity and grade, both critical to advancing the project towards production." Earlier assays from shallow oxide drill holes included 3 metres of 3.40 g/t gold, 1.0 m of 27.79 g/t gold and 2 metres of 6.92 g/t gold, including 1 m of 12.76 g/t gold. The company noted that as "is the case for results released previously" most of the gold intercepts "occur at shallow depth in thoroughly oxidized gold-bearing conglomerate horizons (reefs) that are ame- nable to open cast mining." The timetable for production at Beatons Creek includes an oxide resource model by the middle of this year and mine site development in Q1 2016 with produc- tion around the middle of that year. Novo says no drilling or blasting is required to access the near-surface (within 20 metres) gold-bearing conglomerates which are thoroughly oxidized and amenable to grav- ity recovery. At the less advanced Marble Bar Project, Novo is planning an extensive sampling program. The project includes a recently discovered gold-bearing conglomerate. The Virgin Creek West conglomerate, as it has been named, outcrops for around 600 metres on strike, is shallowly-dipping and up to 2 metres thick. n * Resource World does not sell your information to third parties 709-700 W Pender St., Vancouver bc V6c 1G8 canada Name aDDreSS CitY prov. poStaL CoDe pHoNe e-maiL online at www.resourceworld.com or phone 1.877.484.3800 SAVE 50% up to resource World (print and Digital edition) 1 Year ($19.95) resource World (Digital edition) 1 Year ($9.95) resource World (Digital edition) 2 Years ($14.95) resource World (print and Digital edition) 2 Years ($24.95) international resource World (print) 1 Year ($89.00) renew my subscription Canadian subscribers please add applicable sales tax

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