Pilbara conglomerate gold pioneer, TSX-listed Novo Resources, has consolidated its position in WA’s East Pilbara after acquiring three new leases covering 19 square kilometres along trend with its Beatons Creek project, 75 km north east of Nullagine. The vendors will receive A$100,000 in cash and 324,506 Novo shares for the exploration areas known as the Mt Elsie project.
The company said the deal to purchase the Elsie project leases is only subject to any necessary consents and regulatory approvals within Western Australia and also acceptance by the TSX Venture Exchange.
On the back of recent shallow, alluvial gold finds at its Paradise and Egina gold prospects in the Pilbara, Novo has moved quickly to consolidate its footprint in an area within WA’s northwest that its geological team know well.
The company has unlocked vast areas of alluvial gravel deposits that are shallow and quick and easy to dig. Importantly, Novo appears to have also worked out a processing flow sheet to extract concentrations of gold that have the potential to be economic, potentially via strip mining techniques.
Management said the new tenements are located southeast of Marble Bar, deep in the East Pilbara, but adjacent to numerous leases already wholly-owned by Novo. Drill targets will be worked up later this year.
Novo President and Director, Dr Quinton Hennigh said: “The Acquisition further strengthens one of Novo’s goals, being consolidation of highly prospective gold projects in the East Pilbara region near the Company’s Beatons Creek project.”
“Numerous high-priority bedrock and alluvial gold targets have been identified by Novo staff at the Mt. Elsie Project. Novo plans to soon undertake work designed to generate drill targets for testing later this year.”
“We see the Mt. Elsie Project as a new, important part of our strategy to build a future hub of production around our well-advanced Beatons Creek gold project near Nullagine.”
It appears likely now that the shallow gravels on Novo’s ground will be targeted as the initial foundation resource for its strategy of building a production hub in the region - and Mt Elsie looks to be a good fit.
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By Matt Birney
