Novo Completes Modeling of Oxide Gold-Bearing Conglomerate Horizons at Beatons Creek
VANCOUVER, BC / ACCESSWIRE / June 4, 2015 / Novo Resources Corp. (TSX-V: NVO; OTCQX: NSRPF) ("Novo" or the "Company") is pleased to announce that through meticulous surveying and geologic interpretation, it has constructed the first ever three-dimensional model of the oxide gold-bearing conglomerate horizons (reefs) at its Beatons Creek gold project in Western Australia (please refer to figures 1-5 attached to this news release).
"We are exceptionally pleased with results from surveying and computer modeling our gold-bearing reef horizons," commented Dr. Quinton Hennigh, President and CEO of Novo Resources Corp. "We can now see for the first time the remarkable continuity of these sheet-like gold deposits. Importantly, we are not seeing overly complicated fault structures dislocating the targeted horizons. This should allow for greater ease in following the deposit."
As discussed in numerous recent news releases, the Company is focused on establishing an oxide resource on multiple gold-bearing reefs occurring at shallow depths (less than 20 meters) across a broad target area. The Company sees potential for quickly developing such oxide mineralization into a modest scale gold mine utilizing simple gravity processing to recover gold. Novo has recently laid out plans for advancing the project (please refer to Novo's news release dated April 21, 2015). Completion of this volumetric model is a critical step in preparation for estimating an oxide resource, anticipated for completion in the next couple months.
Over the past few months, the Company has released numerous drill and costean (trench) sample results. Approximately 3,500 drill samples are currently undergoing 3 kg LeachWell analyses (an accelerated cyanide leach) to determine gold grades for resource estimation purposes. Although slow to come back from the laboratory, the Company plans to issue a news release announcing results from a large number of these samples in approximately one week's time.
Three-dimensional modeling of oxidized gold-bearing reefs reveals remarkable continuity of these horizons throughout the target area, an arcuate belt about 3 km long that follows the margin of a broad, open syncline. The area has been incised by small creeks giving the deposit a cuspate shape as it continues from one ridge to the next. Oxide reefs underlie approximately 1.2 square kilometers of surface area. At Grant's Hill, up to six stacked reefs are present. Four prominent reefs underlie Golden Crown Hill. In the back area referred to as the Edwards Block, one distinct reef is present. Reefs are typically 0.5-2 meters thick.
The Company believes these beds of rock are potentially amenable to very simple and cost-effective mining processes (please refer to Novo's news release dated April 21, 2015) in which overburden is readily ripped and stripped away with a bulldozer and reef material is selectively mined utilizing an excavator, without the need for drilling and blasting. The Company cautions that there is no certainty that a reserve with demonstrated economic viability will be defined on the project.
The Company is currently completing four shallow diamond drill holes to provide material for density testing, important data needed for estimating tonnages. These holes will be completed in approximately two weeks' time, and samples will be sent to Genalysis Laboratory in Perth for processing and measurement.
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(Figure 1: A view of the target area looking 45 degrees down and due north. Oxide reefs (yellow) are visible through semi-transparent surface imagery. These reefs form an arcuate belt about 3 km in length marking the edge of a broad, open syncline. Depths are shallower than 20 meters. Novo considers these deposits potentially exploitable in a modest mining operation utilizing simple gravity recovery for processing gold. The town of Nullagine, its power station and the Marble Bar highway are all very close to the project.)
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(Figure 2: A close-up view of the Grant's Hill area looking 13 degrees down and due north. Oxide reefs (yellow) are visible through semi-transparent surface imagery. There are up to six stacked reefs in this location. Depths are shallower than 20 meters.)
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(Figure 3: A close-up view of the Golden Crown Hill area looking 13 degrees down and due north. Oxide reefs (yellow) are visible through semi-transparent surface imagery. There are up to four stacked reefs in this location. Depths are shallower than 20 meters.)
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(Figure 4: A close-up view of the Edwards Block area looking 21 degrees down and due southwest. Oxide reefs (yellow) are visible through semi-transparent surface imagery. There is one principal reef in this region. Depths are shallower than 20 meters.)
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(Figure 5: A horizontal view of the Grant's Hill area looking northwest. Oxide reefs (yellow) extend to depth into fresh rock. Drill traces showing assays show the continuation of gold-bearing reefs at depth. Although Novo is focused on advancing the near-surface oxide mineralization toward production, there is clearly potential for extensive fresh mineralization at depth.)
Dr. Quinton Hennigh, the Company's Chief Executive Officer, President and Director and a Qualified Person as defined by National Instrument 43-101, has approved the technical contents of this news release.
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 project and a 70% interest in approximately 1,800 square kilometers surrounding Beatons Creek and at nearby Marble Bar 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,
"Quinton Hennigh"
Quinton Hennigh
CEO and President
Forward-looking information
Some statements in this news release contain forward-looking information (within the meaning of Canadian securities laws) including, without limitation, the statement as to the mining concept and statements as to the expected receipt of results from various exploration and testing activities. 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 undertake and complete the planned exploration activities, the receipt of successful results as exploration proceeds, customary risks of the mineral resource exploration industry, dependency upon third parties, assumptions made by management of Novo, as well as Novo having sufficient cash to fund the planned drilling and other activities.
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.
SOURCE: Novo Resources Corp.