Mechanical Sorting Program Update Key Points
June 24, 2022
MECHANICAL SORTING PROGRAM UPDATE
KEY POINTS
• Phase Two mechanical sorting trial completed using samples from Comet Well, Purdy’s Reward,
and Egina using Novo’s wholly-owned Steinert KSS 100F LIXT fine mechanical sorting unit (“Sorter”)
• Results from the Phase Two trial confirm that strong upgrade ratios can be achieved by running
lower grade material through the Sorter in line with results from higher grade material
• Phase Three trial at Comet Well will be deferred to H1 2023
• Novo to prioritize immediate attention to developing the Fresh mineral resource at the Beatons
Creek Gold Project (“Beatons Creek”) and high-potential exploration programs
VANCOUVER, BC – Novo Resources Corp. (“Novo” or the “Company”) (TSX: NVO, NVO.WT & NVO.WT.A)
(OTCQX: NSRPF) provides an update on its mechanical sorting program.
Phase Two Trial
The Phase Two mechanical sorting trial has been completed, with samples from Comet Well, Purdy’s Reward,
and Egina processed through the Sorter which was assembled adjacent to the Golden Eagle processing plant
at the Nullagine Gold Project (“Nullagine”).
The Phase Two trials represent a culmination of four years of test work conducted by Novo to determine the
amenability of mechanical sorting across its 11,000 sq km of Pilbara tenure in Western Australia.
The Phase Two trial involved thirty-three samples , primarily from the Comet Well and Purdy’s Reward
tenements, which were processed though the Sorter. The Comet Well and Purdy’s Reward samples were taken
from areas peripheral to the main minerali zed zone representing lower-grade tenor material and contained
approximately 145 tonnes of bulk sample material. Concentrates from each sample were collected in their
entirety and the tails or ‘rejects’ stream was sub-sampled and sent for assay via ChrysosTM PhotonAssay.
The Phase Two trial confirmed that the mass pull to concentrate averaged 1.05% for lowe r-grade tenor
material, which aligns with previously collected results from higher-grade lab scale test work. Preliminary
Phase Two results are outlined in Table 1 below.
Phase Three Trial
Following completion of the Phase Two trial, the Sorter was scheduled to be transported to Comet Well for
the Phase Three trial, which is designed to process up to 20,000 tonnes of potentially mineralized material
from the Comet Well and Purdy’s Reward projects.
Detailed project planning has confirmed that the expected cost of the Phase Three trial has significantly
increased from earlier estimates. Work completed as part of the project plan development confirms the
nuggety nature of the Comet Well and Purdy’s Rew ard mineralization and the difficulty in confirming gold
inventory. The use of the Sorter to complete processing of a test parcel of potentially mineralized material
remains the most appropriate means of determining potential gold deposition and project economics, and it
is expected that the Phase Three trial will assist with establishing a modest mineral inventory for the Comet
Well and Purdy’s Reward projects.
Following the production pause at Beatons Creek 1 and requirement to direct immediate attention towards
development of the Fresh mineral resource, along with exploration across high potential Pilbara-wide targets
in the short -to-medium term, the Novo Board of Directors has made the decision to defer the Phase Three
1 Refer to the Company’s news release dated June 14, 2022.
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trial at Comet Well until the first half of CY2023. Novo’s Sorter project team has been reassigned to assist with
the Beatons Creek Fresh feasibility study2.
Novo is dedicated to prioritizing resources to deliver key workstreams at the Beatons Creek Fresh mineral
resource including completion of the Feasibility Study2, upgrading the current Fresh mineral resource , and
continued resource and extensional drilling to expand potential for life-of-mine operations. Additionally, Novo
is also focused on aggressively advancing the high-potential exploration targets at Becher for gold in the Egina
district and at Purdy’s North for nickel in the West Pilbara district.
Commenting on the mechanical sorting update, Executive Co-Chairman, acting Chie f Executive Officer, and
director Mike Spreadborough said, “While we are disappointed to defer the Phase Three trial at Comet Well,
all work to date shows that innovative use of sorting technology for the Comet Well and Purdy’s Reward
projects is expected to generate positive results . Our immediate focus is on delivering shareholder value
through the plan we outlined for Phase Two operations at Beatons Creek.”
“We have a very busy second half planned and once we complete those various workstreams, we will re -
consider the timing of the Phase Three trial at Comet Well and make a decision on the path forward.”
SAMPLE PREPARATION, ASSAYING AND QUALITY ASSURANCE/QUALITY CONTROL
Concentrate samples from the Sorter were collected in their entirety. The tails or ‘rejects’ stream was sub -
sampled at regular intervals manually. This was achieved by placing a container through the full width of the
sample stream as it transferred by gravity from one conveyor belt to another. A composite of approximately
20kg from the ‘rejects’ stream was collected across the sample run. All samples and sub-samples were then
weighed (wet), recorded, and submitted for transport to Intertek’s mineral laboratory in Maddington,
Western Australia.
On sample receipt at Intertek Maddington, all samples and sub-samples were dried for 24 hours. They were
then fed through a Smart Crusher, where their material particle size was reduced to P90 -3 mm. The crushed
concentrate and ‘rejects’ samples were then placed into ChrysosTM PhotonAssay pots. The pots were then
assayed in thei r entirety by ChrysosTM PhotonAssay. ChrysosTM PhotonAssay is a non -destructive method,
based on technology that measures gold concentration via X-ray excitation to produce gamma rays. Intertek
ChrysosTM PhotonAssay is NATA accredited (3244) via ISO/IEC 17025 (2017) for method PA W0002. Program
design, quality assurance/quality control, and interpretation of results is performed by qualified persons
employing quality control (“ QC”) analysis consistent with industry best practices. ChrysosTM PhotonAssay
certified CRMs and blanks are included at a rate of 1 in 40 samples for QC purposes by Intertek, the results
of which are provided to Novo. Novo does not know of any factors of samp ling that could materially affect
the accuracy or reliability of the assay data disclosed.
All data was verified without limitation by a qualified person by reviewing analytical procedures undertaken.
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. Dr. Hennigh is the non-executive co-chairman and a director of
Novo.
CAUTIONARY STATEMENT
The decision by the Company to produce at the Beatons Creek Project was not based on a feasibility study of
mineral reserves demonstrating economic and technical viability and, as a result, there is an increased
uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including
increased risks associated with developing a commercially mineable deposit. Production has not achieved
forecast to date. Historically, such projects have a much higher risk of economic and technical failure. There is
2 Refer to the Company’s news release dated June 14, 2022.
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no guarantee that anticipated production costs will be achieved. Failure to achieve the anticipated production
costs would have a material adverse impact on the Company’s cash flow and future profitability.
The Company cautions that its declaration of commercial production effective October 1, 20213 only indicates
that Beatons Creek was operating at anticipated and sustainable levels and it does not indicate that economic
results will be realized.
ABOUT NOVO
Novo operates its flagship Beatons Creek gold project while exploring and developing its prospective land
package covering approximately 11,000 square kilometres in the Pilbara region of Western Australia. In
addition to the Company’s primary focus, Novo seeks to leverage its internal geological 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].
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 Phase Three trials at Comet Well will begin in the first
half of CY2023, that the Beatons Creek Fresh feasibility study and upgrade of the current Beatons Creek Fresh
mineral resource and continued resource and extensional drilling is expected to expand life -of-mine
operations, that the use of the Sorter to complete processing of a test parcel o f potentially mineralized
material remains the most appropriate means of determining potential gold deposition and project
economics, that it is expected that the Phase Three trial will assist with establishing a modest mineral inventory
for the Comet Well and Purdy’s Reward projects, and that funds will be allocated to aggressively explore key
sulphide and oxide prospects along the Mosquito Creek formation to extend operations at Nullagine beyond
Beatons Creek . These statements address future events and co nditions 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, customary risks of the resource industry
and the risk factors identified in Novo’s management’s discussion and analysis for the three-month period
ended March 31, 2022, 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 resu lts 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 shows the assay and mass pull data from the first ten samples of the Phase Two trial, confirming strong
upgrade ratios from low grade material can be achieved through the Sorter in a single pass.
3 Refer to the Company’s news release dated October 12, 2021.
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Sample ID
Total Sample
Feed Mass (t)
Con. Grade
(Au, g/t)
Rejects
Grade (Au,
g/t)
Total Au
Recovery (%)
Mass Pull to
concentrate, %
Head Grade
(Au, g/t)
Upgrade
Ratio
P1 2.1910 1.1375 0.0009 86% 0.49% 0.0065 174
P2 2.6260 2.2372 0.0009 99% 6.05% 0.1363 16
P3 2.8680 0.0533 0.0008 42% 1.08% 0.0014 39
P4 1.5370 2.1603 0.0016 95% 1.30% 0.0296 73
P5 4.6220 0.3960 0.0018 73% 1.16% 0.0064 62
P6 0.4440 6.3822 0.0215 83% 1.60% 0.1232 52
P7 6.6720 3.5877 0.0004 98% 0.69% 0.0252 142
P8 5.1750 0.8324 0.0005 92% 0.67% 0.0060 138
P9 5.2090 0.0661 0.0005 30% 0.34% 0.0008 86
P10 4.2790 0.0476 0.0005 52% 1.06% 0.0010 50