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Novo Reports Significant Advancements in Mechanical Sorting Technology

Corporate Updates

Novo Reports Significant Advancements in Mechanical Sorting Technology

VANCOUVER, British Columbia, Nov. 12, 2019 -- Novo Resources Corp. (“Novo” or the “Company”) (TSX-V: NVO; OTCQX:

NSRPF) is pleased to announce that the Company has completed encouraging gold processing trials at the Steinert Global

testing facility in Perth, Australia. 

Highlights:

• Recent tests of Steinert mechanical sorting equipment demonstrate recovery of fine gold nuggets as small as

0.4 mm, a significant step toward a potentially cost-effective “dry and chemical free” means of gold

recovery. Recent proprietary technological improvements in sensor sensitivity, image recognition ability and software

development made by Steinert have been driven by the need to sort fine particles of metal such as copper from

industrial waste, Steinert’s main business focus. Novo is working with Steinert to exploit this technology as a potential

means of gold recovery (please see https://www.youtube.com/watch?v=hLv87rdpFnE).

• This technology, using induction sensors as the primary means utilized to detect small gold particles, adds to

Novo’s “palette” of potential processing solutions. Fine nugget sorting testwork complements Novo’s recent tests

of other technologies including eddy current separation (please refer to the Company’s news release dated September

16, 2019 - https://www.novoresources.com/news-media/news/display/index.php?content_id=363) and x-ray

transmission mechanical sorting of gold-bearing conglomerate (please refer to the Company’s news releases dated

November 19, 2018 - https://www.novoresources.com/news-media/news/display/index.php?content_id=331 - and

December 20, 2018 - https://www.novoresources.com/news-media/news/display/index.php?content_id=335, and

January 31, 2019 - https://www.novoresources.com/news-media/news/display/index.php?content_id=341). Novo

envisions applying a combination of technologies to process its conglomeratic and lag gravel gold deposits that it is

exploring across the Pilbara region, Australia, noting that Beatons Creek, in addition to coarse gold, has significant

quantities of very fine gold amenable to conventional CIL gold processing.

• Steinert has provided favorable initial guidance on expected productivities of sorting various size fractions

of gold-bearing material utilizing mechanical sorters. Productivity estimates include:

◦ Particle sizes 17-50 mm: approximately 280 tonnes per hour

◦ Particle sizes 6-17 mm: approximately 90 tonnes per hour

◦ Finer particle sizes including sub-mm: approximately 50 tonnes per hour

Numbers above are estimated based on sorting a loosely packed mono-layer of material scattered across 70% of a 2 m

wide conveyor belt moving at a speed of 2.8 m/sec. Sorting of fine material may benefit from use of thinner belts, 3 mm

instead of 5 mm, which allows for a higher induction signal and is expected to further reduce the size of gold particles

that can be detected.

• Steinert has also provided encouraging mechanical sorting operating cost guidance. Typical operational cost

of mechanical sorters is around US$1.00-$1.50 per tonne of feed processed at a belt coverage of 12%. A significant

proportion of operating costs are associated with the cost of providing compressed air to the ejection valves.

Mechanical sorters are typically used for upgrading feeds ahead of long-distance trucking to a plant or as pre-

processing to upgrade material where processing plants are constrained for throughput. Each of these scenarios involve

high ejection rates, often exceeding 50% of the total mass. In contrast to this traditional use, Novo’s intended

application contemplates mechanical sorting as the primary sorting mechanism to separate gold particles and it is

expected that less than 1% of material will require ejection at 70% belt coverage. Novo have been advised that

processing cost could potentially be reduced under this scenario to as low as US$0.26 per tonne.

• Novo envisions utilization of mechanical sorting as a means of dry processing of Egina lag gravels and is

making plans to field test this technology in 2020.

• These technological improvements in nugget detection have positive implications for gold capture at Novo’s

Karratha gold project. Test work conducted on Karratha conglomerates by TOMRA, Sydney, Australia, in late 2018

and early 2019 clearly shows mechanical sorting of +6 mm gold-bearing rock is effective at capturing a significant

percentage of gold, but a solution for the -6 mm fraction of crushed gold bearing conglomerates was not feasible at that

time. It now appears a solution is possible.

• Technological improvements in mechanical sorting technology continue apace, with Australia’s dominant

mechanical sorting companies, Steinert and TOMRA, each supported by strong and active research and

development divisions. Both companies continue to strive for improved detection and ejection capabilities to advance

commercial application of mechanical sorters in the resources sector. 

“Our recent tests on sortability of fine gold nuggets are very encouraging,” commented Rob Humphryson, CEO and director of

Novo. “As investors are aware, Novo is experimenting with a number of waterless, chemical free processing techniques to

handle the unique nuggety gold in our Pilbara conglomerates and lag gravels. Tests over the past few months with Steinert

mechanical sorters fitted with induction sensors have shown that we can now reliably identify gold particles orders of

magnitude smaller than possible only a year ago. Early this year, we showed that sorting of gold-bearing rock material using

TOMRA’s mechanical sorters utilizing x-ray transmission is highly effective. More recent tests using Steinert eddy current

separators also proved very promising. We are quickly developing a palette of processing techniques that can be potentially

utilized to treat our various styles of mineralization. Whilst we have been assured that a detected gold particle can be reliably

ejected, field testing of these technologies in 2020 will be the next critical step to prove this technology and gain an

operational understanding of productivities, costs and detection size limits.”

Dr. Quinton Hennigh, P. Geo., the Company’s, President, Chairman, Director, and a qualified person as defined by National

Instrument 43-101, has approved the technical contents 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 13,000 sq km with varying ownership interests. 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.

“Quinton Hennigh”

Quinton Hennigh

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.

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 planned processing activities and the likelihood of their results.

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. Such factors include, without limitation,

customary risks of the mineral resource industry as well as the performance of services by third parties.