Novo Resources reports Australian bulk sample results

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Novo Resources has found in situ gold nuggets up to 4 cm long in primary conglomerates from its rst trench at its Purdy›s Reward prospect, part of Novo’s new Karratha gold project located in the West Pilbara, Western Australia. Source: Novo Resources Corp.

Novo Resources Corp. [NVO-TSX; NSRPF] reported analytical test results from a bulk sample of gold-bearing conglomerate collected from a trench at the Purdy’s Reward prospect, which is covered by an earn-in/joint venture memorandum of agreement between Novo and Artemis Resources Limited [ARV-ASX] and part of Novo’s greater Karratha gold project in Western Australia. This sample originates from the uppermost horizon of an 11-meter thick sequence of mineralized conglomerate beds. Purdy’s Reward is part of an 8 km trend that has recently been identified as highly prospective for conglomerate-hosted gold mineralization considered analogous to the Witwatersrand in South Africa.

Given the extremely coarse nature of gold found in conglomerates at the Karratha gold project, Novo collected a trial bulk sample from the Purdy’s Reward prospect to help establish sampling and assay protocols.  Mineralized conglomerate was collected from a 2×2-meter exposure of bedrock at the bottom of a half-meter deep trench. The sample was split into duplicate subsamples and was shipped to Nagrom Metallurgical Laboratory in Perth.

Results are presented in Table 1.  The calculated head grade of subsample #1 is 87.76 g/t gold, and subsample #2 is 46.14 g/t gold.  The weighted average grade of these two subsamples is 67.08 g/t gold.

Table 1 – Bulk Subsample Analytical Results:

Subsample ID Subsample Dry Weight (kg) Sorted Concentrate Weight as % of Total Weight Calculated Head Grade of Subsample  (Au gpt) % Contribution of Gold in the Sorted Concentrate to the Calculated Head Grade of the Subsample % Contribution of Gold in the Sorted Tailings to the Calculated Head Grade of the Subsample
#1 272.8 2.15 % 87.76 83.12 % 12.53 %
#2 269.5 1.82 % 46.14 81.99 % 15.63 %


Results from this testwork are encouraging at several levels. The Steinert XSS T sorting machine proved highly efficient at sorting out coarse gold-bearing rock particles. Although the Sorted Concentrate represents only 2% of the overall sample weight, it contains about 82.6% of gold.  Because this machine proved practical and efficient, Novo sees it as a means of assisting determination of grade of this very unusual mineralization.  Given this machine can operate at about 48 tonnes per hour, Novo also considers it potentially viable for future processing applications.

Although the vast majority of gold resides in the coarse fraction, a significant fine-grained gold component is evident.  Although more work is needed to further quantify this fine-grained gold component and its distribution, it may prove meaningful when it comes time to demonstrate continuity and grade of this very unusual deposit.

Novo considers the calculated head grade of subsamples #1 and #2, 87.76 and 46.14 g/t gold respectively, very encouraging.  The weighted average grade of these two subsamples, 67.08 g/t gold, which equates to 2.16 oz per ton.

With this data in hand, Novo plans to work with Nagrom over the next few weeks to generate a refined protocol for sampling and analysing conglomerate-hosted gold mineralization at the Karratha gold project.  Novo and Artemis plan to undertake full-scale, systematic trench bulk sampling along the strike of the conglomerate package at Purdy’s Reward, beginning in a few weeks.

Plans are also being made to test the use of large diameter reverse circulation drilling on down-dip projections of these conglomerates.  Novo has been in discussions with a drill contractor with capabilities of drilling 17.5” (44.5 cm) diameter holes and is preparing necessary permitting to undertake a pilot program of around 30 shallow, 20-50 meter-deep holes.

“We are very pleased with results from our initial bulk sampling exercise,” commented Dr. Quinton Hennigh, Chairman, President, and Director of Novo Resources. “Not only was the grade of this bulk sample encouraging, the Steinert XSS T sorting machine proved highly efficient at picking rock with coarse gold particles.  We see value in its use for helping determine grade of this very unusual mineralization as well as potential use for future commercial applications.  We look forward to working with Nagrom over the next few weeks to develop sampling and analytic protocols applicable to our upcoming trenching and drilling program.  Novo has developed extensive experience testing unconventional conglomerate gold deposits at our Beatons Creek project. Traditional exploration and analytic techniques are not well suited to this style of gold deposit.  We look forward to exploiting our many years’ experience at Beatons Creek to our and Artemis’ benefit at Karratha. While these initial results are encouraging, a systematic and careful work program drawing on our experience is required.”

The Purdy’s Reward tenement is situated on lands that are subject to an earn-in/joint venture agreement with Artemis Resources. Novo delivered draft long-form definitive agreements to Artemis several weeks ago and is currently working with Artemis to close out the documents. Novo and Artemis are each entitled to 50% of rights to conglomerate and paleoplacer gold on ground the subject of the Novo-Artemis deal, with Artemis having 100% of all other minerals (including all minerals in JORC reserves and resources announced by Artemis as at May 18, 2017).

Novo recently completed consolidation of the adjacent Comet Well Project.  The Comet Well Project covers 54.5 km2, the Novo-Artemis earn-in/joint venture covers 1,536 km2, and Novo has staked a 100% interest in 7,638 km2.

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Filed in: Gold, Resources

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