Novo Resources (ASX: NVO) has boosted its recent gold drilling results by re-assaying larger sample sizes from its WA Nunyerry North project, using modern high-tech multi-pot photon-assays due to the nature of its coarse-gold.
The improved results highlight several significant intersections, including 6m at more than 6 grams per tonne at the project it has in joint-venture with the renowned Creasy Group.
Novo says initial results from the recent drill program of 30 holes for 2424m, indicated visible coarse-gold. Fire assay sampling proved inconsistent with its results due to the chunky nature of the coarse gold within the Nunyerry North mineralised system, being disproportionally spread across many small sample sizes used with fire assays.
Management says the bigger 2kg crushed sample size provided a much better method to assess the average level of gold contained within each sample with the material split over multiple photon-assay pots.
The final assay result was calculated as the weighted average of the pots grade and weight, resulting in larger sample sizes and more accurate assay results.
The better significant intercepts are now derived from multi-pot analysis, using about four pots per sample. Many significant results were obtained analysing a larger sample size, however due to the variable distribution of coarse gold, not all re-assaying resulted in assay upgrades.
The best results were 6m at 6.12g/t gold from 37m, including 5m at 7.28 g/t from 37m, 11m going 2.52 g/t gold from 22 m, including 6m at 4.19g/t from 22m and 13m at 1.89g/t from surface, including 4m going 2.56g/t from 3m.
It also had the solid hit of 4m at 5.71g/t gold from 40 m, including 3m going 7.47g/t from 41m.
The company plans for future drilling samples to be tested using the multi-pot photon-assay technique.
It is exciting to see a significant grade increase in the Nunyerry North drill results, some of which are close to surface and demonstrate the substantial upside potential of this Project. Plans are in in place for phase two follow-up drill program, which has been designed to test extensions of the known target horizon, structural targets and a potential mineralised porphyry intrusion.
Novo Resources Executive co-chairman and acting chief executive officer Mike Spreadborough
The company says it is well-funded for ongoing exploration activities and is keeping an eye out for possible future acquisition opportunities sitting on a strong cash balance of $17.4 million. It also has an existing investment portfolio it values at more than $39 million, in several ASX-listed and unlisted companies.
With most of its investment funds in two unlisted companies, Novo says it plans to realise the funds within the next 18 months via a share-sale agreement, with the resulting cash providing real impetus to any planned exploration programs, or potentially a value-adding acquisition.
Importantly, Novo is also debt free and carries no rehabilitation liabilities.
Nunyerry North is part of the Egina gold camp and consists of a joint-venture (JV) with the successful Creasy Group on a 70-30 basis. The Egina gold camp is a contiguous tenement package hosted by the Mallina Basin rock formation to the north, with mafic and ultramafic sequences further south.
The land area is near De Grey Mining’s 11.5-million-ounce Hemi gold project to the north and north-east.
The company has focused on exploring the tenure within the past 18 months culminating in the Egina JV with De Grey, in addition to delineating the Nunyerry North gold prospect.
Follow-up reverse-circulation (RC) drilling is planned at Nunyerry North for about 4000m. The program will test multiple targets from mapping and surface sampling.
With a promising WA gold project under its belt, a JV with a pending gold giant and a nice chunk of cash in the bank, Novo appears well-placed to create some real interest.
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