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Novo Updates Progress at its Beatons Creek Gold Project - Provides Overview of its New Blue Spec Gold-Antimony Project

19.11.2015  |  The Newswire

Vancouver, BC / TheNewswire / November 19, 2015 - Novo Resources Corp. ("Novo" or the "Company") (TSX-V: NVO; OTCQX: NSRPF) is pleased to provide an update of progress at its Beatons Creek gold project and an overview of its newly acquired Blue Spec gold-antimony project, both located in Western Australia.

Progress at Beatons Creek

Novo is aggressively evaluating the potential economics of an open cast/gravity-recovery mining scenario for its Beatons Creek gold project. This work will form the basis for an upcoming preliminary economic assessment that will examine the viability of mining shallow, oxide-only resources documented in the Company's recently released report titled: "NI 43-101 Technical Resource Report, Beatons Creek Gold Project, Pilbara Region, Australia" (this report can be accessed on SEDAR or on the Company's website by clicking the following link: http://novoresources.com/pdf/NI-43-101-Technical-Report.pdf).

In the Company's news release dated October 14, 2015, Novo discussed favorable metallurgical results indicating good gold recoveries are achievable with a simple, gravity-only mill. Soon after receiving this information, Novo began examining options and costs for constructing a new, "turn-key" mill for the Beatons Creek project. Two recent findings have caused Novo to reconsider this approach in favor of looking at potentially much cheaper alternatives.

Firstly, Novo recently contracted an engineer to inspect components comprising its newly acquired Blue Spec gold mill, part of the Blue Spec project. Althought this mill dates to the mid-1980's, the jaw crusher and cone crusher were determined to be in good condition and potentially compatible with the Beatons Creek milling scenario. Both have adequate throughput to meet the scope of the Beatons Creek project.

Second, due to the downturn in the mining sector, Novo has identified numerous new and used mill components across Western Australia that are available at modest prices. Novo has been looking at a spectrum of equipment potentially compatible with the Beatons Creek milling scenario.

As a result of these additional investigations, completion of designing and costing a mill, a critical component of the upcoming economic study, will be delayed until early 2016. The Company deems this added work and time as justifiable given the potential savings for the project. Work on other facets of the economic study are proceeding as planned.

Blue Spec Gold-Antimony Project Overview

The Blue Spec gold-antimony project encompasses approximately 125 sq km and is situated approximately 20 km due east of Novo's Beatons Creek Project. Gold mineralization is of orogenic lode vein style and is hosted by an east-west trending shear zone extending approximately 20 km along the length of the property. A significant amount of stibnite, a Sb-sulfide mineral, accompanies high-grade gold mineralization. This style of gold mineralization is present elsewhere in Australia including at the Costerfield mine in Victoria State (operated by Madalay Resources Ltd.).

High grade shoots at the Blue Spec and Gold Spec mines, host indicated resources of 151,000 tonnes at 21.7 gpt Au (105,300 oz) and 1.7% Sb and inferred resources of 264,000 tonnes at 13.3 gpt Au (112,600 oz) and 1.0% Sb. This historical estimate, disclosed in Northwest's news release of September 30, 2013 and in the mineral resource statement issued by Northwest on the same date (the "Northwest Disclosure Documents"), are stated to have been reported in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves (2012 JORC Code), which are consistent with sections 1.2 and 1.3 of NI 43-101. For the key assumptions, parameters, and methods used to prepare these estimates, please refer to the Northwest Disclosure Documents which are available on Northwest's website (www.nw-resources.com.au). These are the most updated estimates and data available regarding the Blue Spec and Gold Spec deposits and, as such, no work needs to be done at this point in time to upgrade or verify the estimates. Novo is unaware of the existence of any technical report prepared in connection with the technical information contained in the Northwest Disclosure Documents. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. Novo is not treating the historical estimate as current mineral resources or mineral reserves.

Since completing the Blue Spec acquisition on October 5, 2015, Novo has undertaken a comprehensive review of the project with a focus on exploration potential. Findings from this study conclude:

  • --Drilling has not closed off mineralized shoots at either of the historic Blue Spec and Golden Spec mines (see Figures 1 and 2 below). In fact, each of these shoots is open to the east, west and at depth. Importantly, the 900 meter gap between these two mines (Golden Spec to the west and Blue Spec to the east) remains largely untested below depths of around 100 meters. See the table below for historic drill intercepts from multiple zones across the project including the Blue Spec and Golden Spec zones.

  • --Splay zones coming off of the Blue Spec and Golden Spec veins have not been fully tested. Although drill holes targeting the main veins were largely successful at hitting those structures, many of these holes stopped short of testing nearby, sub-parallel splays. Also, some holes appear to have been selectively assayed, so it is also possible that core from splay structures was never sampled.

  • --Near surface mineralization is evident in numerous locations along the 20 km strike of the Blue Spec shear zone. Numerous shallow (<150 m depth) drill intercepts from the Green Spec, Red Spec and Orange Spec zones reported in the table below illustrate this. In addition to shallow potential, it is worth noting that these three zones are also open at depth.

  • --Four historic surface rock chip samples taken from outcrop and subcrop in areas ranging between 600 and 1,300 m west of the Golden Spec deposit display high grades (from east to west: 86.9 gpt Au w/ no Sb assay; 78.3 gpt Au/0.67% Sb; 143.8 gpt Au/0.56% Sb; 22.5 gpt Au/1.21% Sb). These samples suggest high-grade vein targets may present in this area.

  • --Previous rock chip sampling efforts appear to have lacked focus. Through mapping, Novo has identified structural zones and has undertaken detailed sampling. Results are expected in early 2016.

Based on the conclusions of this initial review, Novo sees considerable potential for expanding known zones and discovering new high-grade shoots.

"We are quite excited by the prospect of potentially realizing significant cost savings for mill components for our Beatons Creek gold project," commented Dr. Quinton Hennigh, President, CEO and director of Novo Resources Corp. "We are similarly excited about recognizing significant upside for expanding gold zones and discovering new high-grade shoots at our newly acquired Blue Spec project."

Quinton Hennigh (Ph.D., P.Geo.) is the Qualified Person pursuant to National Instrument 43-101 responsible for, and having reviewed and approved, the technical information contained in this news release. Dr. Hennigh is President, CEO and a Director of Novo Resources Corp..

About Novo Resources Corp.

Novo's focus is to evaluate, acquire and explore gold properties. Indirect subsidiaries of Novo hold a 100% interest in the core of the Beatons Creek gold project, a 70% interest in approximately 1,800 square kilometers surrounding Beatons Creek and at nearby Marble Bar, and a 100% interest in the Blue Spec gold-antimony project, all in the Pilbara region, Western Australia. 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.

"Quinton Hennigh"

Quinton Hennigh

CEO and President

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Forward-looking information

Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, statements as to the expected receipt of results from various exploration and testing activities and the economic viability of the Beatons Creek gold project. Forward-looking 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 mineral resource exploration industry as well as Novo having sufficient cash to fund the planned drilling and other exploration activities.


Click Image To View Full Size

(Figure 1: Long section through the Blue Spec shoot showing drill intercepts. Gray area has been partially mined out. Note that there is no drilling below ~100 meters east or west of this shoot that closes it off.)


Click Image To View Full Size

(Figure 2: Long section through the Golden Spec shoots showing drill intercepts. Gray areas have been partially mined out. Note that there is no drilling below ~100 meters east or west of these shoots that closes them off.)

Historic Drill Intercepts from the Blue Spec Gold-Antimony Project

Hole Number

From (m)

To (m)

Length (m)

Au (gpt)

Sb (%)

Zone

BSP0215

57.00

58.00

1.00

5.70

0.12

Blue Spec

BSD0017

414.70

421.00

6.30

9.46

0.01

Blue Spec

BSD0018

457.00

458.00

1.00

123.81

0.03

Blue Spec

including

457.50

458.00

0.50

245.00

0.03

Blue Spec

and

468.80

475.00

6.20

27.72

1.05

Blue Spec

BSD0018_W1

477.55

484.03

6.48

6.55

0.08

Blue Spec

and

489.00

492.00

3.00

5.75

0.02

Blue Spec

BSD0018_W2

476.54

477.48

0.94

19.12

0.05

Blue Spec

and

495.37

500.00

4.63

3.04

0.02

Blue Spec

and

554.40

557.00

2.60

8.91

0.01

Blue Spec

BSD0019

164.00

167.45

3.45

2.62

0.02

Golden Spec

and

167.45

169.27

1.82

14.86

1.89

Golden Spec

BSD0022

401.80

406.20

4.40

65.40

4.96

Blue Spec

including

401.80

403.40

1.60

176.63

13.61

Blue Spec

BSD0027

470.00

471.15

1.15

62.67

0.43

Blue Spec

BSD0028

425.63

427.64

2.01

40.71

0.01

Blue Spec

BSD0033_W1

520.20

521.70

1.50

14.18

0.07

Blue Spec

BSD0034

532.52

534.13

1.61

30.57

4.14

Blue Spec

BSD0034_W1

597.00

599.00

2.00

3.70

0.01

Blue Spec

BSD0035

608.60

617.50

8.90

4.93

1.48

Blue Spec

and

620.00

622.00

2.00

6.46

0.01

Blue Spec

BSD0035_W1

496.00

499.00

3.00

2.66

0.01

Blue Spec

and

587.00

594.00

7.00

3.03

0.05

Blue Spec

and

609.20

620.70

11.50

12.71

0.49

Blue Spec

including

614.20

614.70

0.50

78.10

0.16

Blue Spec

BSD0036

485.00

490.00

5.00

2.67

0.02

Blue Spec

and

506.00

506.55

0.55

4.74

0.01

Blue Spec

and

617.00

619.20

2.20

3.83

0.01

Blue Spec

and

622.60

625.70

3.10

3.07

0.01

Blue Spec

BSD0036_W1

486.50

487.50

1.00

3.02

0.32

Blue Spec

and

490.00

493.00

3.00

2.91

0.02

Blue Spec

and

565.00

567.00

2.00

2.86

0.03

Blue Spec

and

695.10

697.10

2.00

4.94

0.46

Blue Spec

and

714.10

717.60

3.50

112.16

10.55

Blue Spec

BSD0036_W2

501.33

502.90

1.57

3.32

0.01

Blue Spec

and

572.00

573.95

1.95

17.49

0.80

Blue Spec

and

739.75

740.65

0.90

13.98

0.07

Blue Spec

BSD0040

715.83

718.80

2.97

3.08

0.01

Blue Spec

BSD0041

792.00

792.38

0.38

7.95

0.08

Blue Spec

BSD0042_W1

414.10

415.95

1.85

18.99

0.01

Blue Spec

and

419.25

424.47

5.22

4.05

0.01

Blue Spec

BSD0044_W1

413.00

414.85

1.85

17.61

0.11

Blue Spec

including

413.95

414.85

0.90

34.90

0.19

Blue Spec

and

416.55

417.95

1.40

3.21

0.02

Blue Spec

and

420.60

421.77

1.17

3.16

0.02

Blue Spec

BSS_177

121.00

125.00

4.00

4.50

0.01

Blue Spec

BSS_178

42.00

44.00

2.00

3.70

0.01

Blue Spec

BSS_184

72.00

76.00

4.00

6.00

0.00

Orange Spec

DDH_101

370.94

374.45

3.51

98.34

8.17

Blue Spec

DDH_101-D

364.85

372.72

7.87

11.08

2.16

Blue Spec

including

371.63

372.72

1.09

43.47

4.30

Blue Spec

DDH_103-D

305.71

306.93

1.22

5.60

0.00

Blue Spec

and

309.98

313.41

3.43

69.64

1.25

Blue Spec

including

310.59

311.68

1.09

201.43

3.20

Blue Spec

DDH_104

453.85

454.76

0.91

3.32

0.00

Blue Spec

DDH_106

233.48

252.23

18.75

30.84

2.83

Blue Spec

including

240.79

243.23

2.44

73.40

11.75

Blue Spec

DDH_21

285.70

293.37

7.67

96.09

4.02

Blue Spec

including

290.47

292.30

1.83

255.62

16.37

Blue Spec

DDH_22

323.16

329.97

6.81

42.11

17.01

Blue Spec

including

328.85

329.97

1.12

127.04

25.40

Blue Spec

DDH_505

0.99

1.60

0.61

21.74

9.38

Blue Spec

DDH_506

0.00

7.87

7.87

4.81

1.61

Blue Spec

including

4.63

5.37

0.74

30.00

3.89

Blue Spec

DDH_507

7.70

19.21

11.51

5.20

0.16

Blue Spec

DDH_507-D1

25.75

30.50

4.75

15.42

1.65

Blue Spec

DDH_507-D4

71.75

76.75

5.00

20.72

9.48

Blue Spec

DDH_507-U1

23.60

38.75

15.15

5.99

1.37

Blue Spec

including

35.05

35.55

0.50

37.60

12.95

Blue Spec

DDH_507-U3

26.75

27.00

0.25

30.00

0.86

Blue Spec

and

52.50

54.25

1.75

15.71

2.55

Blue Spec

DDH_508

6.90

8.40

1.50

18.44

2.61

Blue Spec

and

11.40

11.70

0.30

30.00

1.00

Blue Spec

and

18.90

24.30

5.40

15.76

4.27

Blue Spec

DDH_509

38.70

39.90

1.20

12.25

4.73

Blue Spec

DDH_510

1.80

3.00

1.20

21.64

0.55

Blue Spec

including

2.70

3.00

0.30

52.00

0.04

Blue Spec

and

7.10

7.40

0.30

7.00

0.02

Blue Spec

DDH_512

22.60

24.40

1.80

18.87

6.93

Blue Spec

DDH_512-U2

40.25

42.00

1.75

17.34

4.02

Blue Spec

including

40.50

41.00

0.50

28.00

13.55

Blue Spec

DDH_515

2.25

4.75

2.50

13.72

8.72

Blue Spec

DDH_516

25.50

26.25

0.75

11.53

4.51

Blue Spec

DDH_517

3.10

9.10

6.00

4.77

0.61

Blue Spec

DDH_518

117.80

119.05

1.25

29.60

4.79

Blue Spec

DDH_520

124.47

125.61

1.14

68.44

15.94

Blue Spec

including

124.97

125.22

0.25

204.50

30.07

Blue Spec

DDH_522

125.75

126.75

1.00

4.08

0.02

Blue Spec

DDH_523

128.30

145.60

17.30

21.00

1.49

Blue Spec

including

128.30

128.50

0.20

258.98

19.00

Blue Spec

MP0003

3.00

16.00

13.00

5.26

0.00

Blue Spec

MP0004

15.00

16.00

1.00

3.42

0.00

Blue Spec

MP0005

5.00

13.00

8.00

7.26

0.00

Blue Spec

MP0006

3.00

14.00

11.00

5.61

0.00

Blue Spec

MP0007

1.00

13.00

12.00

8.85

0.00

Blue Spec

MP0008

5.00

15.00

10.00

17.09

0.00

Blue Spec

and

18.00

25.00

7.00

6.43

0.00

Blue Spec

including

8.00

9.00

1.00

41.20

0.00

Blue Spec

MP0009

9.00

28.00

19.00

6.37

0.00

Blue Spec

MP0010

3.00

4.00

1.00

4.46

0.00

Blue Spec

MP0026

24.00

39.00

15.00

3.43

0.00

Blue Spec

MP0030

25.00

30.00

5.00

3.72

0.00

Blue Spec

RCPH0021

12.00

13.00

1.00

6.76

0.02

Blue Spec

BSD0037

232.68

233.84

1.16

5.26

0.01

Red Spec

BSP0174

88.00

89.00

1.00

4.23

1.37

Red Spec

BSP0177

137.00

143.00

6.00

2.52

0.00

Red Spec

and

149.00

160.00

11.00

7.53

0.01

Red Spec

BSP0178

177.00

179.00

2.00

4.89

0.01

Red Spec

BSP0264

58.00

64.00

6.00

2.43

0.01

Red Spec

and

68.00

70.00

2.00

2.78

0.01

Red Spec

and

92.00

105.00

13.00

2.11

0.01

Red Spec

and

121.00

129.00

8.00

7.43

0.01

Red Spec

and

136.00

138.00

2.00

4.08

0.01

Red Spec

BSP0266

23.00

27.00

4.00

4.53

0.00

Red Spec

BSP0273

179.00

180.00

1.00

3.57

0.01

Blue Spec

BSP0275

117.00

118.00

1.00

3.86

0.01

Blue Spec

and

124.00

126.00

2.00

3.10

0.01

Blue Spec

BSP0279

148.00

151.00

3.00

4.18

0.01

Red Spec

BSP0280

182.00

183.00

1.00

3.13

0.01

Blue Spec

BSP0303

91.00

92.00

1.00

4.40

0.01

Blue Spec

BSP0305

145.00

148.00

3.00

3.00

0.01

Blue Spec

BSP0312

0.00

8.00

8.00

2.21

0.08

Blue Spec

BSP0316

17.00

19.00

2.00

3.09

0.01

Blue Spec

BSD0001

295.00

296.00

1.00

11.85

0.04

Golden Spec

and

299.60

300.50

0.90

100.50

16.85

Golden Spec

BSD0002

342.00

343.00

1.00

4.06

0.01

Golden Spec

and

343.32

344.00

0.68

214.00

0.06

Golden Spec

BSD0007

292.00

292.50

0.50

7.44

0.01

Golden Spec

BSD0008

134.94

136.26

1.32

28.91

1.15

Golden Spec

BSD0009

228.00

229.00

1.00

51.00

3.10

Golden Spec

BSD0010

188.33

189.23

0.90

61.35

20.28

Golden Spec

BSD0011

190.30

193.10

2.80

77.59

7.22

Golden Spec

BSD0012

223.90

226.20

2.30

75.51

7.66

Golden Spec

BSD0013

229.88

230.55

0.67

42.90

0.02

Golden Spec

BSD0014

153.25

155.00

1.75

18.31

0.06

Golden Spec

BSD0015

233.00

238.90

5.90

2.99

0.03

Golden Spec

BSD0016

148.00

151.65

3.65

6.84

0.36

Golden Spec

BSD0021

186.00

189.00

3.00

1.71

0.03

Golden Spec

BSS_035

16.00

20.00

4.00

5.74

0.01

Golden Spec

BSS_038

22.00

24.00

2.00

8.71

0.06

Golden Spec

BSS_041

14.00

16.00

2.00

31.15

10.21

Golden Spec

BSS_048

0.00

5.00

5.00

14.00

3.67

Golden Spec

including

3.00

4.00

1.00

47.30

12.85

Golden Spec

BSS_050

14.00

16.00

2.00

10.19

0.34

Golden Spec

BSS_153

49.00

50.00

1.00

4.62

0.02

Golden Spec

BSS_158

83.00

86.00

3.00

5.26

0.03

Golden Spec

GS_15

51.00

53.00

2.00

6.66

0.29

Golden Spec

GS_16

53.00

54.00

1.00

4.13

0.04

Golden Spec

GS_20

129.00

131.00

2.00

35.15

0.20

Golden Spec

GSI_001

167.12

168.25

1.13

6.88

0.01

Golden Spec

GSI_003

222.70

224.80

2.10

17.09

5.53

Golden Spec

including

222.70

223.57

0.87

33.32

10.24

Golden Spec

GSI_004

152.50

158.97

6.47

34.21

6.77

Golden Spec

including

155.60

155.97

0.37

98.10

10.80

Golden Spec

GSI_006

166.27

166.80

0.53

20.40

0.04

Golden Spec

GSI_007

184.36

186.46

2.10

20.09

0.04

Golden Spec

GSI_009

214.60

215.40

0.80

17.33

0.20

Golden Spec

GSI_014

150.16

151.75

1.59

12.17

0.02

Golden Spec

including

151.34

151.75

0.41

40.10

0.02

Golden Spec

BSP0148

63.00

64.00

1.00

6.87

0.00

Orange Spec

BSP0168

65.00

66.00

1.00

9.04

1.85

Golden Spec

BSS_185

40.00

42.00

2.00

9.63

0.01

Orange Spec

BSS_191

33.00

46.00

13.00

5.66

0.00

Orange Spec

BSD0024

157.00

158.00

1.00

2.08

0.02

Green Spec

and

163.10

165.12

2.02

9.90

0.27

Green Spec

BSD0025

111.00

114.00

3.00

8.36

0.01

Green Spec

BSP0023

10.00

12.00

2.00

3.06

0.01

Blue Spec

and

23.00

28.00

5.00

23.25

0.99

Blue Spec

including

23.00

26.00

3.00

37.23

1.52

Blue Spec

BSP0075

35.00

42.00

7.00

11.60

3.66

Green Spec

BSP0079

50.00

52.00

2.00

8.14

0.04

Orange Spec

BSP0088

66.00

70.00

4.00

6.72

0.02

Green Spec

BSP0089

99.00

107.00

8.00

14.74

0.06

Green Spec

BSP0109

150.00

163.00

13.00

13.78

1.33

Green Spec

including

150.00

155.00

5.00

32.13

3.35

Green Spec

BSP0116

156.00

158.00

2.00

6.40

0.03

Golden Spec

BSP0118

47.00

52.00

5.00

12.13

5.59

Green Spec

including

47.00

49.00

2.00

25.55

6.40

Green Spec

BSP0119

59.00

61.00

2.00

7.10

0.01

Green Spec

BSP0128

28.00

30.00

2.00

20.10

4.95

Green Spec

BSP0129

38.00

50.00

12.00

6.85

0.50

Green Spec

including

38.00

40.00

2.00

27.60

1.36

Green Spec

BSD0038_W1

474.60

475.38

0.78

9.44

0.01

Blue Spec

and

491.55

492.00

0.45

7.32

0.02

Blue Spec

BSD0039

721.25

723.47

2.22

3.76

0.74

Blue Spec

and

782.40

783.64

1.24

15.82

4.02

Blue Spec

and

837.50

839.50

2.00

3.27

0.01

Blue Spec

BSP0061

18.00

21.00

3.00

2.11

0.05

Blue Spec

BSI_008

426.00

431.00

5.00

53.32

1.66

Blue Spec

BSI_011

440.46

442.70

2.24

29.45

5.03

Blue Spec

BSI_012

491.87

492.40

0.53

25.50

0.02

Blue Spec

BSP0040

82.00

84.00

2.00

3.59

0.03

Blue Spec

BSP0041

117.00

118.00

1.00

3.98

0.02

Blue Spec

BSP0047

9.00

138.00

8.00

5.05

2.45

Golden Spec

BSP0090

0.00

3.00

3.00

1.94

0.03

Golden Spec

and

53.00

56.00

3.00

3.23

0.03

Golden Spec

BSP0095

87.00

88.00

1.00

10.60

0.28

Golden Spec

Drill intervals in this table are historic and date from the early 1980s to 2012. Some of these intercepts are in or near mine workings dating to the late 1980s and early 1990s. Some, but not all of these drill results form the basis for the JORC 2012 compliant resource estimate announced by Northwest Resources Ltd in a news release dated Sept. 30, 2013 and in the mineral resource statement issued by Northwest on the same date (the "Northwest Disclosure Documents"). This table provides readers with anoverview of the widths, grades and depths of historic drill intercepts encountered on the Blue Spec property. The historical estimate disclosed in the Northwest Disclosure Documents are stated to have been reported in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves (2012 JORC Code), which are consistent with sections 1.2 and 1.3 of NI 43-101. For the key assumptions, parameters, and methods used to prepare these estimates, please refer to the Northwest Disclosure Documents which are available on Northwest's website (www.nw-resources.com.au). These are the most updated estimates and data available regarding the Blue Spec and Gold Spec deposits and, as such, no work needs to be done at this point in time to upgrade or verify the estimates. Novo is unaware of the existence of any technical report prepared in connection with the technical information contained in the Northwest Disclosure Documents. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. Novo is not treating the historical estimate as current mineral resources or mineral reserves.

Copyright (c) 2015 TheNewswire - All rights reserved.


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