Exploration Update Focused ON Discovery Success IN 2023
Suite 1100, 1199 West Hastings Street
Vancouver, BC, Canada V6E 3T5
P: +1-416-543-3120 E: [email protected] www.novoresources.com
18 July 2023
EXPLORATION UPDATE
FOCUSED ON DISCOVERY SUCCESS IN 2023
HIGHLIGHTS
• 8,000 m of drilling planned for H2 2023 across key Pilbara prospects and Belltopper gold project
(“Belltopper”) in Victoria1. Drill programs are expected to support future shareholder value and planned
ASX dual listing process, which remains proposed for Q3 2023.
• Recent A$10 million cornerstone investment and earn-in and joint venture (“Egina JV”)2 with De Grey Mining
Limited (ASX:DEG) (“De Grey”) highlights exciting future of Novo’s Becher project. The Egina JV introduces
De Grey’s proven exploration success and accelerates exploration at Becher. It also allows Novo to advance
other prospective areas within its sizeable exploration portfolio.
• Novo’s flagship Becher project is located in the northern section of the Egina Gold Camp, 28 km along trend
from De Grey’s 11.7 Moz Au (JORC 2012)3 Pilbara Gold Project.
• Novo completed 2,540 aircore (“AC”) holes for over 61,400 m at Becher to the end of June 2023. Results
have delivered promising gold and multi -element assays and defined a large area of gold mineralisation
across 5 sq km, with a total of 109 intercepts > 1 g*m Au reported from drilling to date.
• New results from Becher continue to deliver positive intercepts including (89 holes pending assay results):
3 m @ 2.9 g/t Au from 66 m in F2140
6 m @ 0.45 g/t Au from 30m and 6 m @ 0.51 g/t Au from 60 m in F2137
3 m @ 0.94 g/t Au from 12 m and 12 m @ 0.25 g/t Au from 30 m including 3 m @ 0.36 g/t Au from 36 m in F2253
3 m @ 0.88 g/t Au from 21 m in F2136
6 m @ 0.37 g/t Au from 33 m in F2247
3 m @ 0.64 g/t Au from 12 m in F2299
3 m @ 0.61 g/t Au from 9 m in F2150
• Nunyerry North, located in the southern section of the Egina Gold Camp, is the next target being progressed
as part of Novo’s aggressive Pilbara exploration focus. Novo’s maiden drill program, testing the extensive
coherent high-tenor soil anomaly, is planned for H2 20231.
• Balla Balla, an emerging project in the northern Pilbara, covers an area over 1,200 km sq focussed on the
major Sholl Shear structural corridor. Reconnaissance drilling is planned in H2 20231.
• Novo is deve loping targets around recently identified gold -anomalous intrusions at Bamboo -Strattons
projects in the East Pilbara near Marble Bar where reverse circulation (“RC”) drilling is planned for H2 20231.
• Priority targets emerging at the Belltopper project in Victoria, following a detailed review and synthesis of
recent and historic exploration data. Diamond drilling is scheduled for H2 20231.
• Novo continues to liaise with Pilbara Traditional Owners across whose land we explore and operate to
implement the requirements of the new Western Australian Aboriginal Cultural Heritage Act 2021 (the
"Act"), with minimal delays to Tier One activities as defined in the Act (field work such as surveying, mapping,
soil and stream sampling and other low impact activities).
• Strategic review of Nullagine Gold Project to assess value maximising options for shareholders (which may
include divestment or joint ventures) ongoing, with appointment of advisor progressing.
1 All planned exploration programs are subject to exploration results and funding.
2 Refer to the Company’s news releases dated June 21, 2023 and June 28, 2023.
3 De Grey has reported that its Hemi deposit at the Pilbara Gold Project is comprised of Measured Mineral Resources of 4.7 Mt @ 1.7 g/t Au for 265 koz Au, Indicated Mineral Resources of 184.1 Mt @ 1.3
g/t Au for 7,798 koz Au, and Inferred Mineral Resources of 89.2 Mt @ 1.3 g/t Au for 3,684 koz Au, as those categories are defined in the JORC Code (as defined in National Instrument 43-101 Standards of
Disclosure for Mineral Projects (“NI 43-101”). Refer to De Grey’s public disclosure record for further details. No assurance can be given that a similar or any mineral resource estimate will be determined
at Novo’s Becher Project.
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VANCOUVER, BC - Novo Resources Corp. (“Novo” or the “Company”) (TSX: NVO , NVO.WT & NVO.WT.A)
(OTCQX: NSRPF) is pleased to provide an update on exploration efforts across its prospective project portfolio,
with an 8,000 m drilling program planned for H2 2023 across key Pilbara prospects and Belltopper in Victoria1.
Commenting on the H2 2023 drill program, Novo Executive Co-Chairman and Acting CEO Mike Spreadborough
said, “The first half of 2023 has been a transformative period for Novo, highlighted by our earn-in and joint
venture agreement at our flagship Becher project with leading Western Australian gold developer De Grey, who
we also welcomed as our largest shareholder through a cornerstone investment of A$10 million.
“We are set for an exciting and busy second half. Importantly, our highly prospective 10,500 sq km exploration
portfolio in the Pilbara and Belltopper in Victoria provides Novo with a strong platform for growth and we have
several exploration programs planned to commence across key targets.
“We are also progressing our ASX listing plans and remain on track to hit the boards in Q3 2023. The move to
dual list on the ASX is the logical next step in our growth plans , considering local investor appetite for mining
and exploration companies with projects located in Australia. We believe the listing would provide significant
benefits to Novo including increased liquidity, access to potential new sources of equity and attracting
institutional investment and equity research coverage as we seek to deliver on our growth strategy.”
Successful exploration work in the first half of 2023 at the Company’s flagship Becher project led to the
completion of an earn-in and joint venture arrangement with De Grey (Egina JV), which includes newly defined
targets at Irvine, Heckmair and Whillans.
Pursuant to the agreement, De Grey can spend A$25 million over 4 years to earn a 50% interest in the Egina JV.
Becher is located just south of De Grey’s 11.7 Moz (JORC 2012) 3 Pilbara Gold Project. In addition to the Egina
JV, De Grey separately completed a cornerstone investment of A$10 million in Novo for an approximate 11.6%
post-financing undiluted interest and became the Company’s largest single shareholder2.
Novo’s Pilbara exploration focus has moved to the Nunyerry North project, located in the south of the Egina
Gold Camp. The Company has finalised drill program design and planning for a maiden drill program , which is
set to commence in H2 20231.
In addition to drilling at Nunyerry North , Novo plans to complete reconnaissance drill programs to test
structurally controlled and intrusion-hosted gold mineralisation at the Balla Balla Project in the West Pilbara
and at Bamboo-Strattons near Marble Bar1.
Priority targets are emerging at Belltopper, located in the Bendigo Tectonic Zone, Victoria, following detailed
review and synthesis of recent and historic exploration data. Diamond drilling is scheduled for H2 20231.
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Figure 1: Novo’s extensive Pilbara tenement holding, showing key targets and joint venture locations.
THE BECHER PROJECT
Major Western Australian gold developer De Grey can spend up to A$25 million on exploration at Becher and
adjacent tenements (Figure 2), encompassing approximately 1,000 sq km, pursuant to the Egina JV.
Subject to a minimum commitment of A$7 million within 18 months, De Grey will earn a 50% direct stake in
the relevant tenements by spending A$25 million on exploration within four years. Once De Grey spends A$25
million, the 50/50 Egina JV will be established. De Grey will manage all exploration under the earn -in and
become the manager of the Egina JV once established.
Becher tenements are positioned adjacent to De Grey’s 11.7 Moz Au (JORC 2012)3 Pilbara Gold Project on which
De Grey has reported that it expects to release a Definitive Feasibility Study in Q3 2023. Novo’s exploration
program to date at Becher has displayed geological indicators required for potential discovery success.
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Figure 2: Egina Gold Camp tenure showing the Becher and Nunyerry North Projects and the priority Becher prospects4.
4 De Grey has reported that, at the Pilbara Gold Project, its (i) Mount Berghaus deposit is comprised of Indicated Mineral Resources of 1 Mt @ 1.7 g/t Au for 53 koz Au a nd Inferred Mineral Resources of
3.4 Mt @ 1.2 g/t Au for 128 koz Au, (ii) Wingina Well deposit is comprised of Measured Mineral Res ources of 3.1 Mt @ 1.7 g/t Au for 173 koz Au, Indicated Mineral Resources of 1 Mt @ 1.4 g/t Au for 43
koz Au, and Inferred MineralResources of 1.4 Mt @ 1.6 g/t Au for 72 koz Au, (iii) Toweranna open pit deposit is comprised of Indicated Mineral Resources of 8.3 Mt @ 1.6 g/t Au for 418 koz Au and Inferred
Mineral Resources of 2.5 Mt @ 1.5 g/t Au for 120 koz Au, (iv) Toweranna underground deposit is comprised of Indicated Mineral Resources of 0.1 Mt @ 3.0 g/t Au for 11 koz Au and Inferred Mineral
Resources of 0.5 Mt @ 2.9 g/t Au for 49 koz Au, (v) Mallina deposit is comprised of Indicated Mineral Resources of 1.6 Mt @ 1.2 g/t Au for 64 koz Au and Inferred Mineral Resources of 5.1 Mt @ 1.5 g/t Au
for 243 koz Au, (vi) Withnell open pit deposit is comprised of Me asured Mineral Resources of 1.3 Mt @ 1.5 g/t Au for 62 koz Au, Indicated Mineral Resources of 3 Mt @ 1.8 g/t Au for 178 koz A u, and
Inferred Mineral Resources of 0.7 Mt @ 2.0 g/t Au for 43 koz Au, (vii) Withnell underground deposit is comprised of Indicate d Mineral Resources of 0.1 Mt @ 4.3 g/t Au for 16 koz Au and Inferred Mineral
Resources of 2.4 Mt @ 3.9 g/t Au for 301 koz Au, and (viii) Hemi deposit is comprised of Indicated Mineral Resources of 165.7 Mt @ 1.3 g/t Au for 6,876 koz Au and Inferred Minera l Resources of 70.2 Mt
@ 1.2 g/t Au for 2,632 koz Au, as those categories are defined in the JORC Code (as defined in NI 43 -101). Refer to De Grey’s public disclosure record for further details. No assurance can be given that a
similar or any mineral resource estimate will be determined at Novo’s Becher Project.
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Becher Drilling Update
The Becher Project covers an area approximately 20 sq km in the north of the 100% Novo owned E47/3673
exploration tenement. The area is characterised by shallow cover overlying the prospective Mallina Basin.
Novo commenced AC drilling in September 2022 testing a series of interpreted structural corridors and
intrusion related targets. In ten months, which included a 3 month break due to the Pilbara cyclone season, the
Company completed 2,540 holes for ~61,400 m, with 89 holes pending assay results. The drill program
identified 207 intercepts > 0.5 g*m Au, including 109 intercepts > 1 g*m Au, reported from the results received
to date, a standout result for reconnaissance AC drilling.
Novo’s 2022 drill program proved to be extremely promising across several fronts:
• The location and tenor of gold assay resu lts from drill sampling provided confidence in the fertility of the
interpreted regional structural corridors.
• Multi-element analysis of bottom -of-hole AC drill samples revealed intrusion -related “sanukitoid”
signatures, which are known hosts to gold mineralisation elsewhere in the district.
• The distribution of pathfinder elements such as arsenic, antimony and tungsten (amongst others) defined
vectors which have helped finesse understanding of the controls on gold mineralisation.
• The cover is shallow (generally less than 10 m) and is less consequential than expected.
These findings had considerable influence in targeting and prioritising the 2023 drill programs. The significant
gold and multielement assay results identified multiple targets including a large , priority area of anomalism
across some 5 sq km at Becher across the Heckmair, Irvine and Whillans prospects. Both geological setting and
pathfinder multielement assays appear favourable and gold has been identified in varied host rocks, including
hornblende-diorite and quartz-diorite intrusions, sedimentary rocks and quartz veins.
Drilling at Becher was completed by Novo in June 2023. New results from this program include (Figure 3):
3 m @ 2.9 g/t Au from 66 m in F2140
6 m @ 0.45 g/t Au from 30 m and 6 m@ 0.51 g/t Au from 60 m in F2137
3 m @ 0.94 g/t Au from 12 m and 12 m @ 0.25 g/t Au from 30 m, including 3 m @ 0.36 g/t Au from
36 m in F2253
3 m @ 0.88 g/t Au from 21 m in F2136
6 m @ 0.37 g/t Au from 33 m in F2247
6 m @ 0.2 g/t Au from 21 m and 3 m @ 0.64 g/t Au from 63 m in F2138
3 m @ 0.64 g/t Au from 12 m in F2299
3 m @ 0.61 g/t Au from 9 m in F2150
6 m @ 0.26 g/t Au from 15 m in F2143
Refer to Table 1 and Table 2 in the Appendix below for a complete list of assay results. True widths f rom AC
drilling cannot be estimated at this time.
Recently returned results confirm gold mineralisation along mineralised structures that trend NE-SW between
the Heckmair and Whillans prospects , with several intercepts displaying strong kaolinite-sericite alteration of
the basement sedimentary rocks and distinctive dark grey coarsely crystalline quartz veining.
Gold mineralisation has also been confirmed at the intersection of the NE-SW trending northern Irvine Shear
and southeast contact of the Heckmair hornblende diorite “sanukitoid” intrusion and surrounding mudstone
and sandstone lithologies. This provides further vectoring to a triangle wedge of increased gold anomalism on
the margins of these two prospects.
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Drilling at Becher was completed by Novo on 29 July 2023. All samples have been dispatched to Perth and are
now with Intertek Genalysis for analysis. A total of 29,723 meters in 1,127 holes have been completed in the
two and a half month 2023 AC drilling campaign.
Figure 3: New significant gold assay results from AC drilling (green callouts) at Becher, showing developing target areas and geological
interpretation.
Next Steps
Exploration programs and overall management of the Egina JV area were transitioned across to De Grey on 1
July 2023. An update on the planned exploration program at Becher to be executed by De Grey is expected to
be released before the end Q3 2023.
NUNYERRY NORTH DRILL UPDATE (E47/2973 - NOVO 70% / CREASY GROUP 30%)
The Nunyerry North prospect is located within the Egina Gold Camp, approximately 80 km southwest of Becher
(Figure 2) and is the next drill target being advanced as part of Novo’s aggressive Pilbara exploration program.
The geology of the Nunyerry North target area includes sheeted quartz vein-related gold mineralization within
a sequence of ultramafic komatiites and mafic rocks, juxtaposed by regional shears and offset faults.
Exploration programs completed to date include 40 x 20 m spaced -80 mesh grid soil sampling, rock chip
sampling and detailed mapping.
The high-order gold soil anomaly at Nunyerry North extends over 1.4 km strike with a central coherent >100
ppb Au anomaly extending over 640 m strike, with a second 1.3 km long soil anomaly at > 30 ppb gold defined
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south of the main target. Twenty soil samples returned > 1 g/t Au including 2.3 g/t Au and 2.13 g/t Au5. Rock
chip sampling by Novo has yielded peak values of 30.3 g/t Au, 21.1 g/t Au and 19 g/t Au in 20215.
Nunyerry North was identified by the Creasy Group in 2016 with fine gold panned in several streams. In 2017,
the area was covered with 160 x 80 m spaced soil sampling defining a >300 ppb Au anomaly over 320 m over
the main target5.
Figure 4: Specimen gold from the main soil anomaly at the Nunyerry North prospect.
Heritage clearances have recently been completed for Nunyerry North, allowing final drill program design and
planning for Novo’s maiden drill program, which is set to commence in H2 2023.
Figure 5: Nunyerry North soil anomaly and geological structure, over aerial photography with peak rock chip results
5 Refer to the Company’s news release dated February 17, 2022.
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BALLA BALLA PROJECT (NOVO 100%)
Balla Balla is an emerging exploration target area covering an area over 1,200 sq km located in the northwestern
Pilbara. The interpreted gold targets lie along potentially fertile structural corridors under cover, centered on
the Sholl Shear corridor and associated structures. Though very little systematic prior exploration for gold has
been completed, several small gold historic workings are present. The project area is prospective for intrusion-
related gold mineralisation in addition to structurally hosted gold . Interpretation and targeting reviews are
underway utilising high-resolution geophysical and satellite data sets and applying learnings from Becher, with
several priority target areas defined including Walter Well, Jam Well and Ramquarry.
Planning for heritage surveys and reconnaissance AC drilling under cover, te sting current structural and
intrusion-related targets, is ongoing. Several pegged exploration licenses within the Balla Balla Project are in
the final stages of the approval process and are expected to be granted in H2 2023.
Extensive historical data amalgamation and evaluation continues and will be followed by early groundwork
focusing on first pass regional exploration around the exist ing Destivelle prospect and the newly defined
Johnson Well East, Christmas Well and Woolshed Well prospects (Figure 6).
Figure 6: Location and tenure of the Balla Balla Project, with preliminary structural interpretation and newly defined prospects.
Location of the Egina JV tenure with De Grey in light green.