Operational Update From The Beatons Creek Gold Project

VANCOUVER - Novo Resources Corp. reported an additional operational update, including from its Beatons Creek gold project on which development activities continue, and from refurbishment works at the Nullagine processing facility and associated infrastructure which are proceeding on schedule.

Development activities at Beatons Creek: Works at Beatons Creek are progressing to plan with the development of site road infrastructure, stripping of topsoil and the recent commencement of the first RC grade control drilling program (see figure 1 below). Topsoil has been removed and stockpiled appropriately and roads interlinking the various planned development areas have been substantially upgraded to suitable operations standards.

Grade control program: A high density (10m x 10m drillhole spacing and 0.5m sample interval) RC drilling program has been designed to test the first three months of planned operational areas. This high resolution work will provide detailed information allowing interpretation of the deposit’s lode systems thus providing an opportunity for optimization of the anticipated mining process. The drill contractor, Castle Drilling, has a history of successful resource drilling at Beatons Creek and has been retained to undertake the works, supported by the Novo geological team. Samples are being dispatched to MinAnalytical’s Kalgoorlie laboratory where they will be assayed using the Chrysos technology. Over the past two years, Novo has tested the Chrysos technology on material from Beatons Creek demonstrating high confidence in the analytical method.

Refurbishment works on the Nullagine Processing Facility - Plant refurbishment: Works continue on the Nullagine processing plant maintenance and upgrades. Key componentry has been removed and sent to Perth for refurbishment to return the plant to a reliable, high standard. These works include the refurbishment of screens, cyclone underpan, pumps and other minor componentry. Work in the leach tanks continues with water blasting, sandblasting, with tank repair and baffle replacement, as required. Painting has now commenced with the application of high quality paint which is expected to significantly extend the life of the tanks. Electrical services and control systems are being upgraded to rectify minor defects, improve plant control and to comply with current standards. Water services are being brought back to operational readiness with the removal of older corroded or damaged pipework and replacing it with new fit for purpose pipework.

Overall works are on schedule with no material issues or problems encountered. While early in the refurbishment works program, costs continue to track in line with budget expectations. Long lead items have all been ordered and arrival dates identified to fit with the refurbishment schedule.

Personnel:

CEO and Director, Rob Humphryson, said, “Novo’s site team are making great progress, with works progressing according to plan on all fronts. With the addition of Barend Knoetze to the team in the role of Processing Manager, the senior management team is now complete, allowing them time to wrap their minds around the unique challenges associated with the Beatons Creek conglomerate gold deposit. The Company has received very favorable responses from experienced primary mining contractor candidates who appear very aware of the importance of winning the first contract and building a relationship with a company with such strong growth prospects.”