Novo bulk samples at Egina return coarse gold

Bulk samples collected from test pits excavated at Novo Resources’ (TSXV: NVO) Egina gold project in the Pilbara region of Western Australia have recovered coarse gold.

Novo processed 281 cubic metres of surface lag gravel next to the first exploration trench on the property. The gravel yielded 292.38 grams of coarse gold nuggets. One sample yielded 118.6 grams of gold nuggets from 80 cubic meters of gravel, while another sample yielded 123.5 grams of gold nuggets from 67 cubic meters of gravel. X-ray fluorescence analysis of nuggets indicates purities ranging from 89% to 95%. The densities of gravel range from 1.4 to 2.1 tonnes per cubic metre.

Bulk samples were collected from pits within a broad topographic depression measuring 4 metres wide and 16 metres long, with varying depths ranging from 1 to 2 metres. Sandy soil overburden was stripped prior to gravel extraction. Some underlying bedrock material was excavated along with gold-bearing gravels to capture gold on the bedrock interface. The combination of exploration trenching and metal detecting, followed by bulk sampling and processing, were used to evaluate the gold-bearing gravel.

Novo’s president and chairman Dr. Quinton Hennigh says the results of Egina’s first bulk samples were in line with expectations.

The company says it is evaluating extraction options and viable processing technologies to recover gold from gold-bearing gravels that lie at surface under sandy soil. The company plans to expand exploration activity within the Egina mining lease.

The company started applying for multiple exploration licenses covering much of the Egina property in 2017. In September 2018, Novo increased the project’s area to 948 sq. km through acquiring Farno-McMahon and via a joint venture with Pioneer Resources Limited (ASX: PIO).  The Egina project is located 120 km east of the company’s Karratha gold project.

At press time, Novo shares were trading at $2.50 per share with a 52-week range of $1.87 to $4.11. The company has 172 million outstanding shares for a $447-million market capitalization.