Novo and Artemis Establish Earn-In/Joint Venture Agreement; Unveil a Large New Gold Project in Western Australia
Novo and Artemis Establish Earn-In/Joint Venture Agreement;
Unveil a Large New Gold Project in Western Australia
VANCOUVER, B.C., May 26, 2017 (GLOBE
NEWSWIRE) -- Novo Resources Corp. (“Novo ”
or the “Company”) ( TSX-V:NVO) (OTCQX:NSRPF)
is pleased to announce it has entered into a
preliminary binding memorandum of agreement to
farm-in and joint venture gold rights with Artemis
Resources Limited ( “Artemis”), an ASX-listed mining
company, on Artemis ’ large, 1,536 square km,
exploration package in the Pilbara region of Western
Australia. Novo has also recently acquired, through
staking, a 100% interest in 6,021 square km in the
same region targeting newly recognized
conglomerate-hosted gold mineralization. This is a
new style of gold mineralisation in the Karratha
region that represents an exciting new discovery.
New Conglomerate -Hosted Gold Discovery
In a news release dated April 11, 2017, Novo
discussed acquisition of the Comet Well gold project
near Karratha, Western Australia. Since that time,
Novo has aggressively staked 6,771 square km of
exploration licenses, mainly in the West Pilbara
region (Figure 1). The basis for staking such a large
land package is the recent recognition of gold -
bearing conglomerates in a previously unexplored
sequence of rocks near the base of the 2.7 -2.85
billion year old Fortescue Group, a thick pile of
sedimentary and volcanic rocks underlying vast
portions of the Pilbara region.
In recent years, metal detectorists have discovered
gold nuggets, sometimes in concentrated patches,
over an extensive area around the city of Karratha.
In 2016, several particularly rich nugget patches
were found in an area approximately 45 kilometers
south of Karratha near Comet Well and Artemis ’s
adjoining Purdy ’s Reward. Detectorists have been
active along an 8 km long corridor underlain by
conglomerate horizons that are part of a 50 -100
meter thick sequence of sedimentary rocks
underlying the Mt. Roe basalt at the base of the
Pilbara Map
Figure 1: Map showing Novo Resources
Corp Pilbara land holdings.
Novo Resources Corp.
Comet Well area
Figure 2: Photograph of the Comet Well
area looking south. Weathered, gold -
bearing conglomerates occupy the
foreground. Note liberated quartz cobbles
scattered across the surface. Mt. Roe basalt
underlies the hills in the middle ground and
the Cooya Pooya dolerite sill forms the
ridge in the back. These rocks comprise the
base of the Fortescue Group in this area
and dip shallowly, less than 5 degrees, to
the south. Novo-Artemis farm-in/joint
venture ground covers the foreground.
Novo’s 100% controlled ground lies in the
distance and further into the basin.
Novo Resources Corp.
Fortescue Group (Figures 2). This sequence of
sedimentary rocks does not appear on geologic
maps of the region. Of particular note, prospectors
have recently discovered gold nuggets in situ ,
sometimes in abundance, in outcropping
conglomerates thus confirming their origin (Figure
3).
Gold nuggets at Comet Well and Purdy ’s Reward
display several interesting characteristics. Most are
flattened with rounded edges giving them an
appearance similar to watermelon seeds. Most are
coarse, +2 mm and are not attached to quartz or
other minerals. Gold is of high purity, +96%,
compared to lode gold from the Pilbara region that
displays purities of 70 -90%. Most nuggets occur in
the sandy matrix of conglomerate and the sandy
texture has been imparted on their surface through
pressure during burial (Figure 4). Fine particles of
remobilized and re-precipitated gold occur in 2 -3 mm
wide halos surrounding nuggets (Figure 5). Gold -
bearing conglomerates appear to have been
subjected to thermal metamorphism in the form of
hornfels.
Novo advises that extensive exploration work is
necessary to gain an understanding of the geology
of these conglomerates, let alone establish a mineral
resource. However, given their substantial lateral
extent and locally high concentrations of nuggets
within them, Novo considers the conglomerate -
hosted gold mineralization around Comet Well to be
a significant new discovery. Gold -bearing
conglomerates are Novo ’s primary exploration focus
in the Pilbara, and given the vast amount of
experience Novo has gained exploring such deposits
at Beatons Creek, approximately 350 km east of
Karratha, Novo is ideally suited to explore this
exciting new discovery.
Novo has staked approximately 6,021 square km
southward from Comet Well covering virtually all
projected down dip extensions of gold -bearing
conglomerates. The addition of the Artemis earn -
in/joint venture ground brings in an additional 1,536
square km of land including critical areas of
outcropping gold -bearing conglomerates such as the
Purdy’s Reward discovery discussed in a news
release issued by Artemis on February 20, 2017
Gold nugget examples
Figure 3: Examples of in situ gold nuggets
frozen in matrix material from the Comet
Well and Purdy ’s Reward area. Rock is dark
grey-green to brown hornfelsed sandy
conglomerate. Gold is high purity, 96 -98%,
setting it apart from that from basement -
hosted lode gold deposits which commonly
displays purities of 70-95%. Note that
nuggets are rounded, clear evidence they
are detrital in origin. Multiple outcrops of
gold-bearing conglomerate have recently
been identified at Comet Well and Purdy ’s
Reward. Novo plans to assess such areas
first during upcoming exploration activities.
Novo Resources Corp.
Liberated "watermelon seed"
type gold nugget
Figure 4: Liberated “watermelon seed ”
type gold nugget from the Comet Well area.
Blue lines are 1 mm apart. Note the
dimpled surface, a result of imprinting of
sandy matrix on the nugget during
compaction after burial. Otherwise, the
original shape of the nugget is well -
preserved.
Novo Resources Corp.
Cross sectional view
(Figure 6). Given that Artemis has already permitted
exploration work, Novo plans aggressive trenching at
Purdy’s over the next several months followed by
drilling later this year. While the development of
Beatons Creek project remains Novo ’s main focus,
Novo views the Comet Well area and its vast new
Pilbara land holdings as a potential pipeline of
conglomeratic gold projects upon which the
Company can grow. A key component of the earn -
in/joint venture agreement allows access to Artemis ’
permitted mill at Radio Hill, a potential benefit should
economic mineralization be identified and put into
production.
“The new gold discovery around Comet Well and
Purdy’s Reward is truly exciting, ” commented Dr.
Quinton Hennigh, President, CEO and director of
Novo Resources Corp. “Abundant gold nuggets are
being found in situ in conglomerates at several
locations along what is now an 8 km long corridor.
While Novo has staked virtually all projected down
dip extensions of gold -bearing conglomerates
around Comet Well, the addition of the Artemis earn -
in/joint venture ground brings in critical areas of
outcropping gold -bearing conglomerates including
the Purdy ’s discovery. We are looking forward to
working closely with Artemis as we explore this
remarkable new discovery.”
“Teaming up with Novo Resources Corp. on
Artemis’s extensive land package around Karratha
for gold -bearing conglomerates will certainly fast
track the overall exploration efforts on this very
exciting and new gold play in the region, commented
David Lenigas, Executive Chairman of Artemis
Resources Limited. “Our Purdy ’s Reward gold
project and Novo ’s adjacent Comet Well gold project
have now identified gold -bearing conglomerates
over an 8 km strike. We look forward to partnering
with Novo and creating value for our combined
shareholders. ”
Key terms of the Artemis Earn -in/Joint Venture Agreement
1. Novo will farm-in to 50% of the Gold Rights (as defined below) in Artemis’s current and future
tenements within 100km of Karratha (including at Purdy’s Reward, Weerianna, Carlow
Castle, Nickol River) by expending AUD $2 million on exploration within two years of
satisfying conditions precedent in the Farmin and JV Agreement (the Farmin Commitment).
2. Typical conditions precedent apply to the transaction, including completion of satisfactory
Figure 5: Cross sectional view of a
“watermelon seed ” style gold nugget in a
sawn slab of gold -bearing conglomerate.
The dark grey -green color is likely a
product of thermal metamorphism, hornfels,
of the original rock. Note the crenulated
texture around the edge of the nugget.
Encircling the nugget is a cloud of very fine
gold, likely remobilized during burial or
metamorphism. Such dispersed gold is
common around in situ nuggets at Comet
Well and Purdy ’s Reward.
Novo Resources Corp.
Map of the Karratha region
Figure 6: Novo 100% controlled and Novo -
Artemis farm-in/joint venture holdings in the
Karratha region.
Novo Resources Corp.
due diligence by Novo and receipt of necessary approvals from the Australian Foreign
Investment Review Board, the Western Australian Department of Mines and Petroleum,
Artemis’ existing JV partners and any approvals needed under ASX or TSX-V listing rules.
3. Gold and Gold Rights which Novo can earn rights to are defined as gold (and other minerals
usually mined with gold) in conglomerate and/or paleoplacer style mineralisation. Novo
cannot earn any rights to (i) Artemis’s existing JORC compliant Resources and Reserves or
(ii) future JORC compliant Resources and Reserves announced by Artemis which are not
within conglomerate and/or paleoplacer style mineralization.
4. Artemis retains all rights to minerals not within conglomerate and/or paleoplacer style
mineralisation.
5. During the farmin phase, Novo will sole fund exploration for Gold and will determine where
the AUD $2 million in exploration expenditure is expended.
6. Once the Farmin Commitment is satisfied, for Artemis tenements which are not within an
existing joint venture agreement, Novo and Artemis will form a new 50:50 joint venture to
explore for, develop and mine conglomerate and/or paleoplacer style gold mineralization.
For Artemis tenements which are already within existing farmin/joint venture arrangements,
Novo will join those arrangements with its rights limited to 50% of Artemis’ existing rights to
conglomerate and/or paleoplacer style gold mineralization (subject to obtaining necessary
consents from Artemis’ existing joint venture partners, which are expected in the ordinary
course). Those existing farmin/joint venture arrangements are expected to continue on their
current terms, subject to discussion with Artemis’s existing joint venture partners.
7. Novo is to be the initial manager of the new Artemis-Novo joint venture.
8. The new Artemis and Novo joint venture includes the following key terms:
a. The joint venture will cover exploration for, development of, and mining of Gold only;
b. Novo and Artemis must contribute equally to exploration, development and mining of
the Gold Rights on the tenements within the joint venture;
c. Failure to contribute to calls for expenditure by the Manager will result in dilution, at a
rate of 1% for every AUD $500,000 not contributed;
d. A party’s joint venture interest will be converted to a 0.5% NSR royalty if the joint
venture interest drops below 5%. A non-converting party has a right to buy out the
royalty at market value at any time after conversion to a royalty;
e. No “Area of Interest” will apply, given that Novo’s other Karratha tenements will not be
within the new joint venture;
f. The joint venture parties agree to assess the possibility of utilising Artemis’s 425,000
tpa Radio Hill treatment plant for treatment of ore from any new Gold mine pursued by
the joint venture, with the view to fast tracking project development; and
g. Other customary and typical joint venture terms will apply.
Quinton Hennigh (Ph.D., P.Geo.) is the Qualified Person pursuant to National Instrument 43 -101
responsible for, and having reviewed and approved, the technical information contained in this news
release. Dr. Hennigh is President, CEO and a Director of Novo.
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 Beatons Creek gold project, a 70% interest in properties surrounding Beatons Creek and
Marble Bar, a 100% interest in the Blue Spec gold -antimony project, and options covering approximately
400 square km over the Mosquito Creek Basin, all in the Pilbara region, Western Australia. Novo also
controls a 100% interest in approximately 2 sq km covering much of the Tuscarora Au -Ag vein district,
Nevada. For more information, please contact Leo Karabelas at (416) 543 -3120 or e -mail
On Behalf of the Board of Directors,
Novo Resources Corp.
“Quinton Hennigh”
Quinton Hennigh
CEO and President
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.
Forward -looking information
Some statements in this news release contain forward -looking information (within the meaning of Canadian
securities legislation) including, without limitation, statements as to the expected receipt of results from
various exploration and testing activities. Forward -looking 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, customary
risks of the mineral resource exploration industry as well as Novo having sufficient cash to fund the planned
drilling and other exploration activities.
Photos accompanying this release are available at:
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