VANCOUVER, BC, October 26, 2018 - Novo Resources Corp. (“Novo” or the “Company”) (TSX-V: NVO; OTCQX: NSRPF) is pleased to announce bulk sample results from its Comet Well joint venture (80% Novo; 20% Smith/Gardner Mining), part of Novo’s greater Karratha gold project, Western Australia.
First round bulk sample results confirm the potential of the basal conglomerates at Karratha and support Novo’s view of significant prospectivity across its Comet Well/Purdy’s Reward tenements and, more broadly, the prospectivity of Novo’s 12,000 square kilometer land-holdings across the Pilbara.
Table 1, Summary of Comet Well Bulk Sample Data:
|Stratigraphic Position||Sample #||Sample Thickness (m)||Sample Mass (t)||Reporting Head Grade (g/t)||Weighted Average Grade||% Au Recovered in MDC (Nugget Au)||% Au Recovered in Gravity Concentrate||% Au Recovered in Gravity Tailings||% Au Recovered via Gravity|
|Lower Cannonball Conglomerate Core||KX157||0.5||7.14||10.40||1.4 m @ 6.06 gpt Au||43.90%||27.90%||28.10%||71.90%|
|KX160||0.6||7.17||1.99||1.8 m @ 2.40 gpt Au||52.60%||17.80%||29.60%||70.40%|
|Margin of LCC Core||KX190||0.5||8.35||1.38||3.80%||79.30%||16.90%||83.10%|
|Below LCC Core||KX159||0.5||4.01||0.16||0.00%||48.90%||51.10%||48.90%|
|Above LCC Core||KX153||0.5||7.19||0.08||0.00%||48.90%||51.10%||48.90%|
|Upper Cannonball Conglomerate Core||KX171||0.6||4.96||1.22||94.90%||4.70%||0.40%||99.60%|
|Margin of UCC Core||KX170||0.6||7.70||0.59||48.20%||15.70%||36.10%||63.90%|
|Below UCC Core||KX172||0.6||4.37||0.01||0.00%||46.50%||53.50%||46.50%|
|Above UCC Core||KX226||0.4||3.67||0.12||0.00%||67.20%||32.80%||67.20%|
The multi-tonne bulk samples presented in this news release serve to provide an indicative grade of the two gold-bearing conglomerates at Comet Well. Novo takes the view that bulk sampling on the scale of 10,000’s tonnes is required to more fully ascertain the grade, distribution, and continuity of these units and to determine the commercial viability of whether a potential mining operation could proceed. Such process is well-known in the diamond industry where trial excavation of very large samples is required to evaluate economics of deposits prior to mining.
Novo plans to use this bulk sample data along with geologic data collected from recently completed diamond drill cores as a basis for a mineralization report, a critical component needed to convert an exploration license to a mining lease.
Bulk Sample Processing
Novo staff collected bulk samples discussed in this news release. Bulk samples were submitted to SGS Minerals in Perth, Australia where they were treated in a test plant detailed in Novo’s news release dated February 6 and May 31, 2018. Because gold mineralization at Comet Well is extremely coarse, the entire sample is coarsely crushed and screened and passed through a metal detector to collect any nuggets. Once detected, the sample is finely crushed, screened and further processed through a gravity concentrator. Concentrates and tails are analyzed, with the final grade based upon the gold recovered from each of the three sample streams (see Figure 3 below). Samples are scrutineered by independent consultants from RSC Mining and Mineral Exploration, Perth, whilst each sample is collected and received into the laboratory, maintaining complete integrity over the chain of custody. All assay certificates and head grade calculations were provided by SGS as secured documents, with the calculations and head grades checked by Novo internal resources and verified by Dr. Simon Dominy. There were no limitations to the verification process and all relevant data was verified.
Dr. Quinton Hennigh, P. Geo., the Company’s, President and Chairman and a qualified person as defined by National Instrument 43-101, has approved the geological content of this news release. Dr. Simon Dominy, FAusIMM (CP), a consultant geometallurgist to the Company, a qualified person as defined by National Instrument 43-101, has approved the processing and sample grade content of this news release.
About Novo Resources Corp.
Novo’s focus is to explore and develop gold projects in the Pilbara region of Western Australia, and Novo has built up a significant land package covering approximately 12,000 sq km with varying ownership interests. For more information, please contact Leo Karabelas at (416) 543-3120 or e-mail firstname.lastname@example.org
On Behalf of the Board of Directors,
Novo Resources Corp.
President and Chairman
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.
Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, the statement that Novo plans to use the bulk sample data described in this news release, along with geologic data collected from recently completed diamond drill cores, as a basis for a mineralization report, a critical component needed to convert an exploration license to a mining lease. 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. There can be no assurance given that the exploration license will be converted to a mining lease.
(Figure 2 – Schematic stratigraphic sections from Cannonball Gully, Drum Gully and Purdy’s Reward showing the position of bulk samples and the two gold-bearing conglomerate units. The bounds of gold-bearing conglomerates are not readily identifiable by eye, therefore bulk sampling encompassed sections of conglomerate above and below each respective gold-bearing unit in order to better constrain their limits.)
(Figure 3 – SGS Bulk Sample flowsheet)
(Figure 4 – Scanning electron microscope image of Comet Well gold nugget with halo of fine gold particles surrounding it. Field of view is 20 mm across.)