Novo is accelerating exploration at Becher with De Grey’s A$10 million cornerstone investment and earn-in agreement.2
Priority targets are emerging at the Bamboo-Strattons and Belltopper projects in Victoria after detailed review and synthesis of recent and historic exploration data. Diamond drilling at these projects is planned for H2 20231.
Nunyerry North
Novo is progressing several gold targets across its Pilbara land package with a maiden RC drill program planned to commence at Nunyerry North in H2 2023. The prospect is located in the southern section of the Egina Gold Camp adjacent to De Grey’s 11.7 million ounce Withnell South discovery and 28 kilometres along trend from Novo’s Becher discovery (Figure 1). Priority has been given to heritage clearances at Nunyerry North which have been completed ahead of the development of a drilling program for H2 2023.
A significant high-order gold soil anomaly has been identified over a 1.4km strike at Nunyerry North and a second 1.2km anomaly highlighted south of the main target area. Rock chip sampling has returned peaks of 8.81 and 7.39 g/t gold from quartz veins within the target area.
At the Beatons Creek prospect, Novo is working towards an updated resource estimate with mining paused to allow for the preparation of this work. This work is expected to be complete by the end of 2022 with a resumption of production and processing in early 2023.
Drilling is continuing at several targets in the Egina Gold Camp including Milburn, Southcourt and NRV06. These projects are all at various stages of exploration with a range of targets being ranked by their geological characteristics and potential to host orogenic gold and battery metals deposits.
The recent A$10 million cornerstone investment and earn-in agreement with De Grey at Becher highlights the compelling exploration opportunity for Novo in the Egina Gold Camp and across its Pilbara land package. The funds will be used to fast-track a robust exploration schedule at Becher and other key Pilbara prospects and also the Belltopper project located south of the Fosterville gold mine in Victoria. Novo is a focused and ambitious gold explorer with a sizeable exploration portfolio in premium Australian gold jurisdictions. The Company is led by a talented and experienced team with the expertise to make discoveries and build sizeable resources. This is reflected in a growing pipeline of projects at Becher, Beatons Creek and Nunyerry North as well as the Belltopper project in Victoria.
Beatons Creek
Beatons Creek is located in the Pilbara mining district near the town of Marble Bar. It consists of conglomerate gold mineralisation within the Black Creek group. Beatons Creek is a shallow, alluvial mining operation that produces a high grade gold product and has an average recovery of 95 per cent from its ore. The project has the potential to grow in significance, as it will be able to exploit additional resource opportunities from deposit extensions. These include a recent conglomerate gold discovery known as Skyfall, which is located approximately 2 km southwest of Beatons Creek (refer to the Company’s news release dated November 5, 2020).
Novo has commenced an exploration programme for the Beatons Creek Fresh rock project to investigate ways to expand the mining footprint and thereby add ounces to the project. In parallel, optimisation work for the Beatons Creek Oxide mineral resource is progressing well and a transition to phase two mining is expected upon receipt of the required approvals from Western Australian regulators.
The Beatons Creek deposit is characterised by multiple narrow stacked and un-mineralised, gold-bearing conglomerate horizons (“reefs”) interbedded with sandstones, grits and mudstones. Reefs vary in thickness from less than 1 m to several metres and are continuous over a 2 km length. The Beatons Creek mineralisation is hosted in a granitic to metamorphic rock unit that has been intruded into the underlying Wiluna Group sedimentary rocks.
In 1908, John Beaton and a partner prospected in the Black Creek area with great success. They went on to build a successful mining partnership with W.A. “Bill” Dikeman and Merton “Mike” Marston. Using an alluvial dredge, they did well in Black Creek, where some ground ran at an impressive ounce a pan. The partners later built a dredge on the Black Creek tributary to Halls Creek, which they operated successfully until the outbreak of the pandemic in 1918-19. In addition to their Black Creek operations, the Beatons were also active in the Innoko district west of McGrath. This district is renowned for its large gold and battery metal land packages.
Nullagine Gold Project
The small town of Nullagine is the site of a gold mine and mineral rich area in Western Australia. The town was the centre of a gold rush in the late 1800’s and today the area still attracts fossickers and prospectors who come to search for gold, gems like agate and beryl and other minerals including antimony, copper, manganese, nickel and tin.
In the past the town had a population of 3000 people but is now only a glimmer of its former self. The mining operation has closed but the town still serves the locals and passing tourists. The town has a park, telecentre, gym, library and hotel. northern voices online is a picturesque outpost set against a backdrop of red granite hills covered in paperbark gums and dotted with rock holes.
GR Engineering Services has won the contract to undertake the engineering, procurement and construction works associated with the refurbishment of Millennium Minerals Ltd’s Golden Eagle Mill at Nullagine Gold Project in Western Australia. The contract is worth about A$8.3 million ($5.9 million) and will be undertaken on a reimbursable cost basis. The scope of work includes the refurbishment and upgrade of the gravity circuit at the Beatons Creek Mine and Golden Eagle Plant which will allow the facility to recommence processing operations early next year.
The company has a number of other projects on the go including development of its wholly owned Purdy’s Reward and Comet Well JV gold projects in the Pilbara region. The Company has also taken delivery of a Steinert KSS mechanical sorter that will be deployed at its Beatons Creek and Nullagine gold projects in WA.
In the short-to-medium term, the Board is directing immediate attention towards developing the Fresh mineral resource at Beatons Creek and exploring high potential Pilbara-wide targets. Novo is also focused on addressing operational issues at Beatons Creek, including a trunnion seal issue in the SAG mill that is resulting in a production pause.
During the production pause Novo will be reviewing its strategic options for the project including possible development, joint ventures or divestment. This will include a thorough analysis of the project’s costs and benefits to shareholders.