Nullagine GOLD Production Update Key Points
Suite 880, 580 Hornby Street
Vancouver, BC, Canada V6C 3B6
P: +1-416-543-3120 E: [email protected] www.novoresources.com
October 11, 2022
NULLAGINE GOLD PRODUCTION UPDATE
KEY POINTS
• No lost-time injuries recorded during Q3 2022 or year-to-date 2022
• Q3 2022 production of 13,137 oz Au , exceeding op erational wind-down guidance1, bringing total
production for year-to-date 2022 to 39,125 oz Au as Phase One operations complete at Beatons Creek2 0F
• Q3 2022 gross revenue of C$28.0 million (A$31.4 million)1F
3 generated from sale of 12,426 oz Au
• Additional 1,000 oz Au estimated to be sold in Q4 2022 as gold is stripped from carbon and Beatons Creek
transitions to operational pause2
• Strong cash balance as at September 30, 2022 of C$65.3 million3, which will support ongoing and extensive
exploration programs and completion of the Beatons Creek mineral resource estimate update and
feasibility study4
• Novo continues to engage with relevant regulatory agencies to address environmental appeal queries
raised regarding proposed Phase Two operations at Beatons Creek5
Table 1: Key Operational and Financial Figures3
Q4 2021 Q1 2022 Q2 2022 Q3 2022
Mining (tonnes) 434,133 395,824 421,981 193,173
Processing (tonnes) 395,310 394,382 398,830 405,071
Grade (g/t Au) 1.16 1.15 1.02 1.03
Recovery (%) 91.5% 91.4% 93.5% 90.7%
Gold Production (oz Au) 12,833 13,378 12,610 13,137
Revenue (C$M) $29.9 $31.9 $29.7 $28.0
Cash and Cash Equivalents (C$M) $32.5 $22.0 $74.8 $65.3
VANCOUVER, BC - Novo Resources Corp. (“Novo” or the “Company”) (TSX: NVO , NVO.WT & NVO.WT.A)
(OTCQX: NSRPF) provides a 2022 third quarter (“Q3 2022”) operational update for the Beatons Creek gold
project (“Beatons Creek”) and Golden Eagle processing facility (“ Golden Eagle Plant”), located in Nullagine,
Western Australia.
BEATONS CREEK PROJECT
Safety and COVID-19 Update
During Q3 2022 and year-to-date 2022, Novo did not record any lost time injuries.
COVID-19 continues to impact the Company’s cost profile. While mandatory COVID-19 isolation requirements
are being eased by the Australian government effective October 14, 2022, supply chain issues are resulting in
elevated costs, particularly with respect to fuel and other consumables . Best efforts have been made to
mitigate the impacts of the p andemic through the adoption of sound risk management processes. The
Company intends to manage such impacts but remains cautious that they may affect all aspects of the
Company’s business, including exploration activities.
Operations
During the final quarter of current operations at Beatons Creek before the pause in operations, approximately
193 kt of mineralized material were mined from the Golden Crown and Edwards areas. Backfilling of the
Grant’s Hill pit has been completed in compliance with environmental requirements for the pause in
1 Refer to the Company’s news release dated July 6, 2022.
2 Refer to the Company’s news release dated June 14, 2022.
3 These financial figures are unaudited and may differ from final results due to foreign exchange and rounding differences.
4 Refer to the Company’s news release dated June 14, 2022.
5 Refer to the Company’s news release dated August 8, 2022.
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operations1. Preliminary reshaping of waste landforms has commenced and rehabilitation works of recent
drilling areas will continue.
The Golden Eagle Plant processed approximately 405 kt in Q3 2022, with an average head grade of 1.03 g/t
Au.
Gold production totalled 13,137 ounces and recovery rates of approximately 90.7% were achieved in Q3 2022.
Q3 2022 gold sales totalled 12,426 ounces of gold and 1,336 ounces of silver for gross revenue of C$28.0
million (A$31.4 million) 3. Throughout Phase One operations at Beatons Creek, Novo has sold its gold in
Australian dollars to ABC Refinery of Sydney, Australia and enjoyed strong gold price performance in Australian
dollar terms.
The Company expects to sell an additional 1 koz Au in Q4 2022 as gold is stripped from carbon and Beatons
Creek transitions to an operational pause2.
Novo is p reparing a reply to the appeal received in response to the Western Australian Environmental
Protection Authority’s decision to not assess the Company’s submission regarding proposed Phase Two
operations of the Fresh mineral resource at Beatons Creek5. The Company continues to engage with relevant
regulatory authorities to seek approval to mine the Beatons Creek Fresh mineral resource and expects to make
a final investment decision post receipt of results of the mineral resource update and feasibility study which
are expected in Q4 20224.
EXPLORATION UPDATE
Drilling continues across priority gold and battery metal targets at Purdy’s North and the Becher area in the
Pilbara region of Western Australia6. The Company will provide an exploration update in early November 2022.
NOVO FINANCIAL POSITION
Novo’s cash balance as at September 30, 2022 was C$65.3 million3 and, as previously reported, Novo is free
of long-term debt7.
In addition to its existing cash reserves, the Company has a n investment portfolio with a fair value of
approximately C$20.5 million as at September 30, 20228.
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 Beatons Creek was not based on a feasibility study of mineral
reserves demonstrating economic and technical viability and, as a result, there was 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 did not achieved forecast.
Historically, such projects have a much higher risk of economic and technical failure. There was no guarantee
that anticipated production costs would be achieved. Failure to achieve the anticipated production costs had
a material adverse impact on the Company’s cash flow and future profitability.
6 Refer to the Company’s news release dated September 6, 2022.
7 Refer to the Company’s news release dated August 12, 2022.
8 This value excludes the fair value of warrants held in GBM Resources Ltd . and other immaterial investments. The value of Novo’s holdings in Elementum 3D, Inc. (“E3D”) is based on E3D’s most recent
financing price of US$8.00 per unit. Except for its investment in E3D and certain other immaterial investments, the fair value of Novo’s investments is based on closing prices of its investments and relevant
foreign exchanges rate as at September 30, 2022.
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The Company cautions that its declaration of commercial production effective October 1, 20219 only indicated
that Beatons Creek was operating at anticipated and sustainable levels and it did not indicate that economic
results would be realized.
ABOUT NOVO
Novo explores and develops its prospective land package covering approximately 10,500 square kilometres in
the Pilbara region of Western Australia, including the Beatons Creek gold project, along with two joint ventures
in the Bendigo region of Victoria, 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 & 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 an additional 1,000 oz Au are estimated to be sold in
Q4 2022, the Company’s cash balance of C$65.3 million will support ongoing and extensive exploration
programs and completion of the Beatons Creek mineral resource estimate update and feasibility study, the
Company intends to manage the impacts of COVID -19, the Com pany is preparing a response to the appeal
received regarding the Western Australian Environmental Protection Authority’s decision to not assess the
Company’s submission regarding proposed Phase Two operations of the Fresh mineral resource at Beatons
Creek, the Company continues to engage with relevant regulatory authorities to seek approval to mine the
Beatons Creek Fresh mineral resource and expects to make a final investment decision post receipt of results
of the mineral resource update and feasibility study which are expected in Q4 2022, and that the Company
will provide an exploration update in early November 2022. 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 resource industry and the risk factors identified in Novo’s management’s
discussion and analysis for the six-month period ended June 30, 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 results of any change to any forward-looking statement contained or incorporated by reference herein to
reflect actual results, futu re 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 respec t to those or other forward -
looking statements.
9 Refer to the Company’s news release dated October 12, 2021.