High-Grade GOLD Mineralized Zone Intersected at Malmsbury Project
Suite 880, 580 Hornby Street
Vancouver, BC, Canada V6C 3B6
P: +1-416-543-3120 E: [email protected] www.novoresources.com
May 10, 2022
HIGH-GRADE GOLD MINERALIZED ZONE
INTERSECTED AT MALMSBURY PROJECT
HIGHLIGHTS
• Drilling on the 50%-owned Malmsbury gold project (“Malmsbury Project”) joint venture with ASX -
listed GBM Resources Ltd. (“ GBM”), located 50 km SSW of the high -grade Fosterville gold mine in
Victoria, Australia, has intersected a significant high-grade gold mineralized zone.
• Significant results received to date include 14 m @ 6.1 g/t Au from 120 m, 10 m @ 4.9 g/t Au from 173
m and 4 m @ 8.6 g/t Au from 188 m (MD16); 7.8 m @ 3.6 g/t Au from 32.2 m (MD13); and 9.1 m @
2.4 g/t Au from 65.4 m (MD14) . These results are not necessarily representative of mineralization
throughout the Malmsbury Project. Remaining assays for the program are expected over the coming
months.
• 2,000 m of diamond drilling completed (>75% of program) with full gold and multi-element assays
received from the first three of six holes completed and sampled to date. Assays confirm high-grade
shoot potential and splay features on the Leven Star mineralization and extension potential for the
Missing Link Reef.
• Intersection of altered, quartz veined, and sulphide bearing Missing Link Monzogranite confirmed in
drill hole MD17, from 204 m to 269 m. Drilling confirms a steep (70 - 80°) east-dipping elongate body
that widens at depth and validates the potential for an intrusion hosted and/or intrusion related gold
(“IRG”) system at the Malmsbury Project. Full gold and multi-element assays for MD17 are still
pending at this time.
• Missing Link Monzogranite target now defined over 340 m strike and 40 m width (at surface) and
remains completely open at depth.
• Current diamond drilling phase nearing completion (Q 3 2022), with recent success to drive a larger
second phase of diamond drilling later in 2022 or early 2023.
• 2D/3D induced polarization (“IP”) survey planned to help define sulphide rich granite-related targets
and disseminated sulphide haloes around gold reef targets.
VANCOUVER, BC - Novo Resources Corp. (“Novo” or the “Company”) (TSX: NVO , NVO.WT & NVO.WT.A)
(OTCQX: NSRPF) is pleased to report significant assay results received from the current diamond drilling
program on RL006587 at the Malmsbury Project, approximately 50 km SSW of the high-grade Fosterville mine
in Victoria, Australia.
Novo exercised its option over the Malmsbury Project to earn a 50% interest and the right to earn an additional
10% interest by incurring A$5 million in exploration expenditure over a four-year period1.
“These preliminary, high-grade results from the Malmsbury Project are very promising, ” commented Ms. Kas
De Luca, Novo’s GM, Exploration. “ Following the early success and results from the first 3 holes of this drill
program, further work to confirm potential for mineralization extensio n, including IP and additional drilling,
are planned for 2022 and early 2023 . We look forward to working with our partner, GBM, to continue
advancing the exciting potential of the Malmsbury Project.”
1 Refer to the Company’s news release dated May 13, 2021.
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(Figure 1: Location of drill holes MD13 – MD18 from current diamond program on RL006587 with key target gold reefs (red lines) and solid geology.
Refer to Appendix 1 for full geology legend.)
DETAILS
Drilling Program 2021 - 2022
Approximately 2,000 m (7 holes, 1 in progress) of a circa 2,650 m planned diamond drilling program have been
completed to date at the Malmsbury Project. At the time of writing, gold, and multi-element assays from three
of six holes completed have been returned in full . Significant results from these early holes are highly
encouraging and include, but are not limited to:
o 14 m @ 6.1 g/t Au from 120 m; including 3 m @ 11.1 g/t Au from 131 m (MD16)
o 10 m @ 4.9 g/t Au from 173 m; including 7 m @ 6.8 g/t Au from 175 m (MD16)
o 4 m @ 8.6 g/t Au from 188 m (MD16)
RL006587
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o 7.8 m @ 3.6 g/t Au from 32.2 m; including 1.85 m @ 12.5 g/t Au from 34.15 m (MD13)
o 4 m @ 2.9 g/t Au from 80 m; including 0.4 m @ 24.4 g/t Au from 81.2 m (MD13)
o 9.1 m* @ 2.4 g/t Au from 65.4 m; including 2.5 m* @ 5.9 g/t Au from 70.4 m (MD14)
*Interval not closed owing to 0.5 m core loss from 72.9 m – 73.4 m
Table 1 below provides a list of significant intersections (reporting >1 gram metre) using parameters that
include a 0.3 g/t Au cut -off and no more than 2 m internal waste for drill holes MD13, MD14 and MD16.
Reported intersections for MD14 and MD13 are considered at (or close to) true widths, with exception to the
Leven Star Reef intersection in MD13 ca. 32 m – 40 m that will have an oblique component. Reported
intersections for MD16 are considered to have an oblique , down-dip component, and thus true widths will
have reduced intersections.
(Figure 2: Location of current diamond holes MD13 – MD16 with targets, geology, historic workings, and significant intercepts. Refer to Appendix 1 for
detailed geology legend.)
Drill holes MD13, MD14 and MD16 were drilled to target high-grade potential shoot zones and other high-
order gold targets, including the Missing Link Gold Reef. In addition, these holes will provide material for
metallurgical test-work from the Leven Star mineralization. All three holes were drilled as larger core diameter
HQ3 (triple tube method) to provide a bigger sample size and maximise core return. All holes successfully
intersected the Leven Star Reef mineralization.
Drill hole MD14 was planned to drill beyond the interpreted Leven Star Reef position to test extensions to
the Missing Link and Panama South historic gold reef workings (Figure 2 and 3). Significant gold
mineralization within multiple puggy, sulphide rich, sericite altered shears in distinctly bleached sediments
from 65 m – 74 m
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(Refer to Table 1 for significant intercepts), strongly suggest that the Missing Link Reef has been intercepted
in this hole, and add a significant strike and down-dip extension to the known extent of this gold reef target.
The Missing Link Reef was also likely intersected in MD13 within similarly bleached and sericite altered
sediments from 71 m – 84 m, returning 4 m @ 2.9 g/t Au from 80 m, including a narrow high-grade interval of
0.4 m @ 24.4 g/t Au from 81.2 m, and confirming the high -grade potential for this reef (Refer to Table 1 for
additional significant intercepts).
(Figure 3: MD13 cross section highlighting intersection of the Leven Star (upper) and potentially Missing Link (lower) minerali zation.)
Drill hole MD16 targeted a complex potential splay and high-grade shoot zone on the Leven Star mineralization
where previous historic reverse circulation ( “RC”) drilling conducted by GBM intersected 7 m @ 5.4 g/t Au
(LSCR015) including 2 m @ 16 g/t Au from 67 m2 (the “GBM Results”) (not verified by Novo), on-section and
up-dip from MD16. Three distinct zones of high -grade gold minerali zation were returned from MD16 ,
including:
• An upper zone characterized by wide limonitic tectonic fault breccia in strongly oxidized material from 73
m – 96 m (refer to Table 1 for significant intercepts);
2 Refer to table 4 of on page 23 of GBM’s 2020 Annual Report dated 29 October 2020 available here.
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(Figure 4: MD16 Tray 21, 22 & 23. Oxidised upper Leven Star intersection. 6.8 m @ 2.5 g/t Au from 73 m incl. 1.3 m @ 5.6 g/t Au from 73 .6 m & 0.9 m
@ 8.7 g/t Au from 75.7 m. Limonitic tectonic fault breccia (TBXH). Interval ends in 1.1 m of core loss.)
• A middle, fresh sulphide zone within a sulphide -rich (arsenopyrite stringers and disseminations) and
moderately silicified, sericite altered and distinctly bleached siltstone and fine sandstone package from
120 m – 141 m (refer to Table 1 for significant intercepts); and
(Figure 5: MD 16 Tray 39 – 40. Fresh sulphide Leven Star intersection. 14 m @ 6.1 g/t Au from 120 m incl. 7.6 m @ 6.7 g/t Au from 121.9 m & 3 m @
11.1 g/t Au from 131 m. Silt and fine sand package with abundant arsenopyrite stringers and disseminations throughout becomin g moderately
silicified in places. Gold values increase with appearance of white quartz stocking at 132 m.)
• A lower fresh sulphide zone (potential newly discovered splay) from 173 m – 197 m (refer to Table 1 for
significant intercepts).
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Reported intercepts for MD16 are interpreted to be oblique. Exact true widths cannot be determined until
mineralization trends are remodelled to incorporate the recent results (including the new potential splay
zone); however, these are anticipated to be a reduction in the stated intersection widths.
(Figure 6: MD16 cross section highlighting three distinct zones of high-grade gold mineralization associated with a complex high-grade shoot and
potential splay zone on the Leven Star trend. MD16 was characterized by east-dipping stratigraphy interpreted to represent the eastern limb of a
prospective anticline hinge position located adjacent and to the west of the MD16 collar.)
Drill hole MD17 was designed as a westerly directed, ca. 400 m hole to test the recently discovered Missing
Link Monzogranite at depth, in addition to the Missi ng Link and Hanover West historic gold reefs. This hole
aimed to determine the geometry and gold endowment of the intrusion and targeted the monzogranite for
its potential as an IRGS, in addition for the potential for orogenic vein style mineralization.
MD17 successfully intercepted the Missing Link Monzogranite between 204 m – 269 m down hole, in addition
to a smaller and potentially parallel shallow sub-surface granite dyke interpreted in strongly oxidised material
near the collar . Drilling confirms a steep (70 - 80°) east-dipping geometry for the intrusive that widens
noticeably at depth . The intrusive is characteri zed by strong sericite alteration and disseminated sulphides
throughout with regular intervals of planar white quartz -sulphide s tockwork veining . A distinct 1 m-wide
sulphide-shear-breccia within strongly quartz veined sandstone occurs within a metre of the upper granite
contact.
Results referred to in this news release are not necessarily representative of mineralization throughout the
Malmsbury Project.
Forward Work Program 2022
Diamond drilling continues with the remaining 2 holes on the Drummond Field (farmland) to test between the
Queens-Egyptian and O’Connor’s Historic reefs. These holes aim to test the down -dip continuity of the high -
High-grade
Zone
New splay?
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grade reefs and constitute the final holes as part of the Phase 1 drilling program at the Malmsbury Project.
The program will be completed in the current quarter with final assays anticipated across Q2-Q3 2022.
The work program moving forward will involve a larger second phase of drilling in 2022 – 2023 in addition to
an IP survey to help define sulphide rich target zones and enhanced quartz veining within the granite (IRGS)
target corridor, in addition to delineating disseminated sulphide haloes around various high-priority gold reef
targets. Further expansion of systematic soil geochemistry, mapping and rock chip sampling is also scheduled.
Sampling & Analytic Methodology
Rock Chip
Rock chip samples and drill core is assayed at ALS Brisbane using the using four acid digest ore grade 30 g
charge fire assay with AA finish (method Au -AA25) and multielement using four acid digest ICPMS (method
ME-MS61) after pulverization.
QAQC for rock chip samples was completed at the rate of 3 standards and 3 blanks per hundred samples.
Diamond Core
The diamond drill core was sampled by cutting the core in half longitudinally. Samples were cut to geological
boundaries or to a preferred length of 1.0 m. The core was halved along the plane of orientation using a
diamond saw and the upper half of the core di spatched for analysis and the lower half returned to the core
tray in its original orientation. Sampling interval lengths range from 0.3 m up to 1.3 m. Core loss zones greater
than or equal to 0.2 m are recorded. Sampling does not cross core loss zones of greater than or equal to 0.3
m. Depending on their relationship to potential mineralization, zones with core loss less than 0.3 m and greater
than 0.1 m can terminate a sampling sequence or be included within a sample interval with the percentage of
sample recovery recorded. Where core loss cannot be specifically attributed, the percentage of sample
recovery is recorded.
All core samples were crushed and pulverised (ALS CRU-21/PUL-23) and sub-sampled for fire assay and multi-
element analysis (ALS Au-AA26, ME-MS61).
Drill core duplicates are inserted at a rate of one sample every 25. To produce a duplicate sample , the whole
core sample is first cut in half, with half of the core returned to the tray. The other half is then quartered with
one quarter used as a primary sample and the other as the duplicate.
Blanks and standards are inserted at a rate of eight samples in 100, with three OREAS CRM standards (OREAS
232, OREAS 239, OREAS 264) and one blank (OREAS C26d) systematically repeated.
No QAQC issues were detected. All relevant data was verified by a qualified person as defined in NI 43-101 by
reviewing analytical procedures undertaken by ALS.
QP STATEMENT
Dr. Quinton Hennigh (P.Geo.) is the qualified person, as defined under National Instrument 43-101 Standards
of Disclosure for Mineral Projects , responsible for, and having reviewed and approved, the technical
information contained in this news release except for the GBM Results. Dr. Hennigh is the non -executive co-
chairman and a director of Novo.
ABOUT NOVO
Novo operates its flagship Beatons Creek gold project while exploring and developing its prospective land
package covering approximately 12,500 square kilometres in the Pilbara region of Western Australia. In
addition to the Company’s primary focus, Novo seeks to leverage its internal geo logical expertise to deliver
value-accretive opportunities to its shareholders. For more information, please contact Leo Karabelas at (416)
543-3120 or e-mail [email protected].
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On Behalf of the Board of Directors,
Novo Resources Corp.
“Michael Spreadborough”
Michael Spreadborough
Executive Co-Chairman and Acting CEO
Forward-looking information
Some statements in this news release contain forward -looking information (within the meaning of Canadian
securities legislation) including, without limitation, that the drilling and forward work programs described in
the news release will be undertaken at the Malmsbury Project and that assays from the current program are
expected in the coming months. These statements address future events and conditions and, as such, involve
known and unknown risks, uncertainties and other factors which may cause the actu al 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, customary risks of the resource industry
and the risk factors identified in Novo’s management’s discussion and analysis for the financial year ended
December 31, 2021, which is available under Novo’s profile on SEDAR at www.sedar.com. Forward -looking
statements speak only as of the date those statements are made. Except as required by applicable law, Novo
assumes no obligation to update or to publicly announce the results of any change to any forward -looking
statement contained or incorporated by reference herein to reflect actual results, future events or
developments, changes in assumptions or changes in other factors affecting the forward -looking statements.
If Novo updates any forward-looking statement(s), no inference should be drawn that the Company will make
additional updates with respect to those or other forward-looking statements.
Table 1: Significant intercept table for results from drill holes MD13, MD14 and MD16. The table is generated using a 0.3 g/t Au cut-off
grade and no more than 2 m internal waste. Higher grade “Includes,” intercepts calculated with 1 g/t Au cut-off grade and no internal
dilution. All intervals > 1 gram metre Au reported here.
HOLE
ID COORDSYS EASTING NORTHING RL
AZI
GRID DIP
Includes
DEPTH
FROM
DEPTH
TO
Au
(ppm)
Width
(m)
Gram*
metres
MD13 MGA94_55 263796 5880085 460 313 -31 32.2 40 3.6 7.8 27.9
MD13 MGA94_55 263796 5880085 460 313 -31 Inc. 34.15 36 12.5 1.85 23.0
MD13 MGA94_55 263796 5880085 460 313 -31 Inc. 38 39 2.0 1 2.0
MD13 MGA94_55 263796 5880085 460 313 -31 45 47 0.5 2 1.0
MD13 MGA94_55 263796 5880085 460 313 -31 62.8 63.3 4.9 0.5 2.5
MD13 MGA94_55 263796 5880085 460 313 -31 Inc. 62.8 63.3 4.9 0.5 2.5
MD13 MGA94_55 263796 5880085 460 313 -31 66.8 69.1 0.6 2.3 1.4
MD13 MGA94_55 263796 5880085 460 313 -31 70.8 75.4 0.6 4.6 3.0
MD13 MGA94_55 263796 5880085 460 313 -31 Inc. 74.4 75.4 1.6 1 1.6
MD13 MGA94_55 263796 5880085 460 313 -31 80 84 2.9 4 11.5
MD13 MGA94_55 263796 5880085 460 313 -31 Inc. 81.2 81.6 24.4 0.4 9.8
MD13 MGA94_55 263796 5880085 460 313 -31 100.8 103.7 0.5 2.9 1.5
MD14 MGA94_55 263798 5880084 457 269 -50 41.8 43.5 1.7 1.7 3.0
MD14 MGA94_55 263798 5880084 457 269 -50 Inc. 42.3 43.2 2.9 0.9 2.6
MD14 MGA94_55 263798 5880084 457 269 -50 65.4 74.45 2.4 9.05 21.3
MD14 MGA94_55 263798 5880084 457 269 -50 Inc. 67.6 68 3.4 0.4 1.4
MD14 MGA94_55 263798 5880084 457 269 -50 Inc. 68.65 69.7 2.3 1.05 2.5
MD14 MGA94_55 263798 5880084 457 269 -50 Inc. 70.4 72.9 5.9 2.5 14.7
MD14 MGA94_55 263798 5880084 457 269 -50 86.6 87.1 2.2 0.5 1.1