Broad Gold-Bearing Swale Discovered at Novo’s Egina Mining Lease

Novo Resources Corp. has reported that a broad gold-bearing swale has been identified in the northwestern quadrant of its Egina mining lease.

This latest finding corresponds well with the overall interpretation of Novo Resources, concerning the distribution of gold over the greater Egina terrace.

Summary

Discovery of the latest gold-bearing swale at Egina mining lease:

• Novo Resources has discovered a broad gold-bearing swale in the northwestern part of its Egina mining lease. This discovery is located a few hundred meters west of the swale that was subjected to elaborate work by Novo Resources earlier in 2019. Using the mobile alluvial Knudson (MAK) test plant of Novo Resources, gold-bearing gravels were identified by processing about 1 ton of bulk samples. MAK sampling denotes the existence of a northwest-trending swale measuring up to 350 m wide, and this seems to go beyond the mining lease onto the adjacent exploration licenses of Novo Resources. Point counts of gold, identified from these MAK samples, are analogous to those collected from the test swale to the east. The thickness of the gravel is also analogous, with a width of 0.5 to 2 m.
• This discovery is situated close to the north of a range of low hills capped in locations by Fortescue Group gold-bearing conglomerates. According to Novo Resources, such conglomerates were much more extensive in this region before, and when they eroded away, gold was reworked into the contemporary gravel terrace.
• It is believed that the next exploration phase will involve bulk sampling in this region to validate the grade. Since this discovery is located on the Egina mining lease, it may prove to be an appropriate site for trial bulk extraction as well as the processing of gravels.

Present understanding of the greater Egina gold-bearing terrace:

• Through the ground-penetrating radar data and the latest MAK sampling work conducted at the Egina mining lease—the recently identified Paradise area in which numerous broad gold-bearing swales were newly discovered—Novo Resources has started to integrate an interpretive model of gold distribution over the terrace in the northern regions of the mining lease. While this indicates a slight fraction of the company’s overall landholdings in the area, this interpretation represents the prospective size of the system.
• The above image depicts a region measuring about 10 km wide and stretching about 17 km northward from a range of low rolling hills that highlight the southern limit of the terrace. According to Novo Resources, this region probably hosts an extensive swale system that has a general trend extending from south to north. Numerous areas, believed to be prospective gold sources, are located at the head of the swale system. This comprises the above-discussed, recently identified swale.
• The interpretive model helps depict a picture that collectively links the recently identified gold-bearing swales at the Paradise area, with regions further south. At the Paradise area, gold may be emerging from the eroded and Fortescue conglomerates and also from the basement lode deposits located in the area. If this is found to be correct, this model would indicate that the gold-bearing swales identified at the Paradise area go beyond a minimum of 10 km to the north and south.

We are pleased to see a model coming together of gravel gold mineralization across the greater Egina terrace. We are starting to see a pattern of gravel gold distribution that appears robust around Egina. Recently discovered broad gold bearing swales discovered at Paradise likely tie back to areas further south.

Quinton Hennigh, President and Chairman, Novo Resources Corp.

Hennigh continued, “This implies we have a network of swales nearly 10 km wide and 17 km from south to north to further explore around Egina, a small part of our large land holdings across the expansive terrace. We have many other target areas to test across our terrace holdings this year. We are just getting started.”

Description of MAK Sampling Process

MAK samples, obtained from the pits, were spaced about 50 m apart across the target regions. A track hoe was used to dig up the pits that range up to a depth of 3 m.

The size of the targeted sample is about 1 ton. Samples were transferred to wooden crates lined with bulk bags and delivered to Novo Resources’ Station Peak camp, where they will be processed via a mobile alluvial Knudsen centrifugal concentrator. In addition, concentrates were panned down to expose the gold for point counting and additional analysis.