Novo Resources Corporation continues to add to its stable of thoroughbred gold projects in the Pilbara, this week entering into an option agreement with local privateers to acquire the Bellary Dome project. The tenure shows marked similarities to the company’s existing conglomerate-gold targets in the area, with the acquisition being the second in as many weeks as the company eyes a production hub in the region.
Novo Resources Executive Chairman, Dr Quinton Hennigh, said: “This agreement gives Novo rights to one of the most prospective areas in the region, the site of significant gold nugget discoveries by previous landholders within the past few years. I reviewed samples of conglomerate material with in-situ gold nuggets from exploration license 47/3555, and these appear very similar to material from our other Pilbara gold projects further north and east.”
“Over the past few years, Novo has developed the in-house protocols to explore and advance projects like Bellary, and we are delighted to have yet another high-quality asset to add to our stable of conglomerate gold projects.”
The Bellary Dome tenure is located immediately north of the iron ore mining town of Paraburdoo and covers more than 75 km2 of prospective conglomerate-gold ground. The project also adjoins Novo’s existing tenure in the region with the company now boasting a massive 13,000 km2 land package throughout the Pilbara conglomerate gold region.
Bellary Dome is an area of ‘structural uplift’ which has resulted in gold-bearing conglomerates being exposed at surface, making it prime ground for new discoveries. Preliminary field work by Novo has confirmed the presence of nuggety gold mineralisation, providing walk up targets for Novo’s exploration team.
Under the terms of the option, Novo will pay Bellary Dome Pty Ltd A$25,000 for an initial option period of 12 months, giving the company time to evaluate the shallow gravels and sediments in the region. However, Novo may at anytime exercise its option to acquire 100% of the gold rights by making a payment of A$1 million to Bellary and granting a 2% gross royalty on all gold production to the private company.
Novo may also choose to extend its option period by up to 4 years by making additional payments to Bellary Dome Pty Ltd within the initial 12-month option period.
In recent weeks Novo has accelerated its program of acquisitions, putting its foot on a number of well-placed gold projects and continuing to expand its impressive ground position throughout the Pilbara region. The TSX listed company is aiming to lock in additional resources to feed a planned production hub in the region and it is a fair bet that Novo has more cards to play as its strategy unfolds.
Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au
