Initial Resource Estimate for Novo's Beatons Creek Gold Project, Western Australia
(via Thenewswire.ca)
VANCOUVER, May 1, 2013 - Novo Resources Corp. (the
"Company") (CNSX: NVO; OTCQX: NSRPF) is pleased to announce
the first ever National Instrument (NI) 43-101 compliant resource
estimate for its Beatons Creek Gold Project, Western Australia. This
resource estimate is based on 16,107 meters of reverse circulation
(RC) drilling and 478 meters of diamond core drilling completed in
2011-12. The effective date of this resource estimate is April 30,
2013.
Highlights:
-Inferred resource of 421,000 troy ounces gold contained in 8.9
million tonnes at a grade of 1.47 grams gold per tonne.
-This inferred resource was defined by 16,107 meters of vertical RC
drilling. Specific gravity measurements were taken from core samples
from eight recently completed diamond drill holes totaling 478 meters.
Costs related to drilling total approximately $2.5 million making the
cost of discovery about $6/troy ounce gold.
-Most of this resource is contained within two shallow, sub-horizontal
gold-bearing conglomerate horizons (reefs) displaying strong lateral
continuity.
-Mineralization remains open to the north, west and south into the
basin. There is a good potential for expanding this resource through
further drilling given the strong sub-surface continuity of these
reefs as demonstrated by drilling coupled with the Company's recent
success in tracing their surface expression along the northern and
northwestern perimeter of the basin (see news release dated January
24, 2013).
-This inferred resource enables undertaking of a preliminary economic
assessment planned for later this year. It is expected that upgrading
this resource to the indicated category can be accomplished by
drilling approximately 3,710 meters more infill RC holes. Doing so
would enable advancement toward a prefeasibility study.
"We are very proud that in a few short months, and for a modest
budget, we have advanced Beatons Creek from a conceptual target to a
sizeable inferred gold resource," commented Dr. Quinton Hennigh,
President, CEO and Director of Novo Resources. "We are off to a
strong start, and from here, we see a straightforward path toward
upgrading and expanding this resource as well as commencing a
preliminary economic assessment."
Beatons Creek NI 43-101 resource estimate is summarized below:
-------------------------------------------------------------
|Classification|Au Cut-off|Tonnage |Au Grade |Contained Au |
| |(grams per|(million|(grams per|(troy ounces)|
| |tonne) |metric |tonne) | |
| | |tonnes) | | |
|-----------------------------------------------------------|
|Inferred |0.20 |9.2 |1.44 |424,000 |
| |--------------------------------------------|
| |0.30 |9.2 |1.44 |424,000 |
| |--------------------------------------------|
| |0.50 |8.9 |1.47 |421,000 |
| |--------------------------------------------|
| |0.60 |8.6 |1.5 |415,000 |
| |--------------------------------------------|
| |0.80 |7.1 |1.67 |381,000 |
| |--------------------------------------------|
| |1.00 |5.5 |1.89 |334,000 |
| |--------------------------------------------|
| |1.50 |3.0 |2.43 |236,000 |
| |--------------------------------------------|
| |2.00 |1.6 |3.02 |160,000 |
| |--------------------------------------------|
| |2.50 |0.9 |3.71 |106,000 |
| |--------------------------------------------|
| |3.00 |0.6 |4.22 |78,000 |
-------------------------------------------------------------
1 troy ounce = 31.1035 grams
Resource Modeling
Mineral resources were estimated by Ordinary Kriging (OK), Inverse
Distance Squared (ID2) and Nearest Neighbor (NN) methods. The OK
estimation was selected as the preferred method and a cut-off grade of
0.5 g/t Au was applied. Mineralization is currently defined in 3
domains containing 23 individual mineralised bodies, all of which are
considered to be primary in origin, despite the shallow weathering
profile.
The majority of assays used for the estimate were determined using
LeachWELL(R) methodology, which was statistically determined to be the
most reliable method for the nuggety gold distribution in this
deposit. Acceptable statistical verification and comparisons of
LeachWELL(R) assays with equivalent Screen Fire Assays and Fire Assays
supported this assessment. Assays were not capped but higher values
were given a restricted search range. All resource blocks in the
block model were estimated in one pass with any blocks that were
estimated flagged as Inferred Resources, based on the variography and
Quantitative Kriging Neighborhood Analyses.
Mineral resources that are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources may
be materially affected by environmental, permitting, legal, title,
taxation, sociopolitical, marketing, or other relevant issues. The
quantity and grade of reported inferred resources in this estimation
are uncertain in nature and there has been insufficient exploration to
define these inferred resources as an indicated or measured mineral
resource and it is uncertain if further exploration will result in
upgrading them to an indicated or measured mineral resource category.
The mineral resources in this news release were estimated using
current Canadian Institute of Mining, Metallurgy and Petroleum (CIM)
standards, definitions and guidelines.
Patrick Huxtable of Tetra Tech, Perth, Australia, has prepared the
Mineral Resource Estimate for the Beatons Creek Gold Project, and is
independent of Novo Resources Corporation for purposes of National
Instrument 43-101 - Standards of Disclosure for Mineral Projects
("NI 43-101"). Mr. Huxtable (RPGeo MAIG) is a Qualified
Person as defined by NI 43-101.
Mr. Huxtable is preparing a NI 43-101 compliant technical report in
respect of the resource estimate discussed in this news release, which
the Company is obligated under NI 43-101 to file on SEDAR within 45
days of the date this news release was disseminated.
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 Director of Novo Resources
Corporation.
About Beatons Creek
The Beatons Creek Tenements cover extensive exposures of the Beatons
Creek conglomerates, a series of Archaean age pyritic conglomerates
hosting gold mineralization similar to that of the Witwatersrand Basin
in the Republic of South Africa. Shallow gold reefs were first
identified and mined in this area beginning in the late 1800's. Novo
Resources' current drill program is the first modern, systematic
exploration on the property. Tenements comprising the Beatons Creek
Gold project include three mining leases in which Novo Resources is
earning a 70% interest from Millennium Minerals Ltd., 560 square
kilometers of prospecting and exploration tenements in which Novo
Resources is earning a 70% interest from the Creasy Group Pty. Ltd.
and three prospecting tenements in which Novo Resources holds a 100%
interest.
About Novo Resources Corp.
Novo's focus is to evaluate, acquire and explore gold properties. The
Company presently has joint ventures earning a 70% interest two
exploration properties, Beatons Creek and Marble Bar, situated in
Western Australia. For more information, please contact Leo Karabelas
at (416) 543-3120 or e-mail leo@novoresources.com
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 potential, through
further drilling, to expand and upgrade to the indicated category the
inferred resource described in this news release, and that a
preliminary economic assessment will be undertaken later this year.
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, the ability to complete the drilling
program as currently contemplated, the receipt of successful results
as drilling proceeds, customary risks of the mineral resource
exploration industry as well as Novo Resources having sufficient cash
to fund the planned drilling and other activities.
Cautionary Note to U.S. Readers Regarding Estimates of Inferred
Resources
This news release uses the term "inferred resources." We
advise U.S. investors that while this term is recognized and required
by Canadian regulations, it is not recognized by the U.S. Securities
and Exchange Commission. "Inferred resources" have a great
amount of uncertainty as to their existence, and great uncertainty as
to their economic and legal feasibility. It cannot be assumed that all
or any part of an "inferred mineral resource" will ever be
upgraded to a higher category. Under Canadian rules, estimates of
"inferred mineral resources" may not form the basis of a
feasibility study or prefeasibility studies. U.S. investors are
cautioned not to assume that any part or all of an inferred resource
exists or is economically or legally mineable.
On Behalf of the Board of Directors,
Novo Resources Corp.
"Quinton Hennigh"
Quinton Hennigh
CEO and President
The Canadian National Stock Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of the content of
this news release.
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