Novo Resources (TSX, ASX: NVO; US-OTC: NSRPF), a Vancouver and Perth-based gold explorer, has committed to an exploration program at three recently optioned and staked properties in Australia.
“All three projects align with Novo’s strategy of identifying drill-ready exploration projects with greater than 1-million-oz. development potential,” executive co-chairman and acting CEO Michael Spreadborough said by phone.
Novo can earn a 70% interest in the John Bull tenement and 80% interest in the Mick Bull tenement, combined as the John Bull gold project optioned from TechGen Metals (ASX: TGI) and a 70% interest in the Tibooburra Gold project optioned from Manhattan Corp. (ASX: MHC). Both properties are located in New South Wales.
At the Tibooburra project, Novo can earn its interest by issuing 1.5 million Novo shares and spending A$1.5-million (C$1.35 million) on exploration after two year-long farm-in periods. In both cases, the agreement can be terminated after each farm-in period if the results are unsatisfactory.
“The farm-in style of agreements we have executed allows us to manage exploration risk because we’ll do a certain piece of work during the first farm-in period and if we like it, we’ll do another piece of work,” Spreadborough said. “If we still like it, we’ll form a joint venture, so the transactions balance risks for our shareholders.”
A JV on the TechGen project is contingent on payment of Novo shares valued at A$500,000 and completion of 3,000 metres of drilling after two farm-in periods, an initial 12 months then 18 months.
Novo’s plans for this year’s second half include mapping, geochemical sampling and 1,500 metres of drilling at the John Bull project in northeastern NSW. It’s also planning detailed structural work, mapping, soil and rock chip sampling, and about 2,000 metres of drilling at the Tibooburra project in northwestern NSW. Farm-in agreements for both projects were completed in December.
Novo also has plans for geophysical surveys, mapping and geochemical sampling at its 1,524- sq.-km Toolunga project in the Onslow district of Western Australia. The recently consolidated Toolunga project consists of 890 sq. km of exploration licence applications optioned from privately held OD4 Rocklea and 634 sq. km of Novo staked exploration licence applications.
The Toolunga project is an underexplored, early-stage opportunity but very prospective based on a desktop review of data, according to the company.
Both John Bull and Tibooburra are advanced exploration projects with promising drill intercepts. Recent drilling by TechGen on the 32-sq.-km John Bull project included assay results of 0.95 gram gold per tonne over 94 metres and 1 gram over 68 metres.
At the 630-sq.-km Tibooburra project, drilling by Manhattan produced assay results of 4.03 grams gold over 30 metres and 13.89 grams over 16 metres from the New Bendigo prospect and 7.23 grams over 7 metres, including 16.1 grams over 3 metres at the Clone prospect.
Novo’s primary project is the Egina JV with De Grey Mining (ASX: DEG) for the Becher property, 28 km from De Grey’s 13.6-million-oz. Hemi project in Western Australia’s Pilbara region.
De Grey, which is in the midst of being acquired by Northern Star Resources (ASX: NST) in an all-share deal valued at A$5 billion, has a farm-in agreement to earn a half interest in Becher contingent on an exploration spend of A$25 million over four years.
The preceding Joint Venture Article is PROMOTED CONTENT sponsored by Novo Resources and produced in co-operation with The Northern Miner. Visit: www.novoresources.com for more information.
March 11, 2025
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