No lost time injuries at the Beatons Creek conglomerate gold project in Nullagine, Western Australia (the “ Nullagine Gold Project ”)
Record gold production of 5,898 oz Au in June , a 16.5% increase over May (Q2 2021 – 14,890 oz Au)
June revenue of C$11.9 million (A$12.8 million) , an 11.4% increase over May (Q2 2021 – C$31.7 million (A$33.1 million))
Operational positive cash flow from Nullagine Gold Project achieved in May and June
Mining and processing rates continued to increase, with 232 kt gold-bearing conglomerate material mined in June (Q2 2021 – 477 kt gold-bearing conglomerate material mined) and 134 kt gold-bearing conglomerate material processed in June (Q2 – 366 kt gold-bearing conglomerate material processed)
Recovery rates reaching optimal levels, with June recovery of 96.4% , up from 94.4% in May
Significant cost saving and operational improvements , including flight sharing arrangements
Quarter-end cash balance of C$46.3 million. The fair value of Novo’s investments also increased to approximately C$200 million 1 (Q1 2021 balance – approximately C$77 million 2 )
“We are very pleased with the operational trajectory of the Nullagine Gold Project,” commented Mr. Rob Humphryson, CEO and a director of Novo. “All key project metrics are trending positively and the Novo team are working diligently on operational improvements that will further benefit the operation. Given the abundance of gold-bearing conglomerate mineralization across the Pilbara region (refer to the Company’s news release dated June 3, 2021 ), we are pleased to demonstrate that the Nullagine Gold Project is generating positive cash flow. We look forward to providing our investors with regular quarterly updates.”
VANCOUVER, British Columbia, July 07, 2021 (GLOBE NEWSWIRE) -- Novo Resources Corp. ( “Novo” or the “Company” ) (TSX: NVO, NVO.WT & NVO.WT.A) (OTCQX: NSRPF) is pleased to provide a quarterly operational update from the first full quarter at the Company’s Nullagine Gold Project.
NULLAGINE GOLD PROJECT
Safety and Sustainability
The lost time injury frequency rate for the past twelve months remains at zero for the Nullagine Gold Project and also for the Company.
The Company works in numerous communities across the Pilbara region of Western Australia and endeavours to be a responsible and trusted corporate citizen throughout all aspects of its operations, as evidenced by recent co-funding of the construction of a playground for local youth in the town of Nullagine.
The Company responded swiftly to COVID-19 related lockdown measures implemented by the Western Australian government in late June and has not been materially impacted by COVID-19 to date.
Gold production at the Nullagine Gold Project continued to increase month-on-month with a record month of 5,898 ounces produced during June 2021 ( Figure 1 ) . Q2 2021 gold production totalled 14,890 ounces.
Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7a528f13-9833-4433-bf22-05988dd6e2e9
Mill throughput continued to increase month-on-month. As contemplated in the Company’s news release dated June 8, 2021 , the processing plant’s annualized rate is increasing towards 1.8 mtpa ( Figure 2 ). A total of 134 kt of gold-bearing conglomerate material was processed in June, for aggregate Q2 2021 processing of 366 kt of gold-bearing conglomerate material. Recovery rates have also increased steadily in Q2 2021, with record recovery of 96.4% achieved in June, up from 94.4% in May. June average grade was 1.45 g/t Au, an increase over Q2 2021 average grade of 1.30 g/t Au.
Mining productivity has continued to improve, with record movement of 232 kt gold-bearing conglomerate material in June, for aggregate Q2 2021 movement of 477 kt gold-bearing conglomerate material. Ozland Drill and Blast Pty Ltd (“ Ozland ”) has mobilized to site and have assumed drill and blast operations ( Figure 3 ). The Company has also internalized control of its explosive supply to optimize cost and operational efficiencies in conjunction with its transition to Ozland.
Figure 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/adb97c88-33a7-4c73-8ac3-dcd3d6f7b761
Figure 3 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9308a2fc-2cbb-43fa-a148-10703b853246
The Company has recently entered into an agreement with Roy Hill Holdings Pty Ltd (“ Roy Hill ”), allowing access to its flights to the Ginbata airstrip around 100 km south of the Nullagine Gold Project. This will result in significant operational cost savings and substantially reduced travel time and travel risk exposure for the Company’s employees. It also allows for more effective handover logistics between crews as they transition between rosters. The Company thanks Roy Hill for its efficient commercial engagement in this area for mutual benefit.
In addition, significant improvements have been achieved in assay receipts. Quick turnaround of assays is critical for grade control at the Nullagine Gold Project. Intertek Testing Services (Australia) Pty Ltd (“ Intertek ”) has now fully commissioned two Chrysos PhotonAssay machines at its Maddington (Perth) facility. Planning is also well advanced for the establishment of a sample preparation laboratory at the Nullagine Gold Project site in conjunction with Intertek ( refer to the Company’s news release dated May 18, 2021 ).
Novo Financial Position
Novo’s cash position and working capital remains robust, with cash reserves of C$46.3 million as at June 30, 2021. In addition to its cash reserves, the Company’s portfolio of investments held a fair value of approximately C$200 million 1 as at June 30, 2021. In particular, the value of Novo’s 9.9% investment in New Found Gold Corp. 1 (TSXV: NFG) (“ New Found ”) has increased significantly following the publication of continuing drill results by New Found from its wholly-owned Queensway project in Newfoundland, Canada.
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 a director of Novo and its president and chairman.
The decision by the Company to produce at the Nullagine Gold Project was not based on a feasibility study of mineral reserves demonstrating economic and technical viability and, as a result, there is an etc. etc.