Novo Resources has options to buy two exceptionally high-grade, drill-ready gold projects in New South Wales, including the John Bull project that has walk-up drilling targets in an area with seven historical shafts, including one sunk in the mid-1880s.
The John Bull gold project is in NSW’s New England Orogen, while the Tibooburra gold project comprises a 2200-square kilometre landholding in the State’s northwestern Albert Goldfields.
Novo has entered into binding agreements with fellow ASX-listed companies, TechGen Metals and Manhattan Corporation respectively for the promising projects.
It says the acquisitions align with its strategy to identify standalone gold projects with a minimum resource potential of more than one million ounces of gold.
Sitting 120km north of Larvotto’s promising 650,000-ounce gold and antimony mine, the John Bull gold project already has advanced walk-up exploration targets.
The project’s two tenements, dubbed John Bull and Micks Bull stretch 32 square kilometres and have shown strong historical results.
Gold was discovered in the district in 1872 and initially mined from three shafts up to 20m deep. Extensive hydraulic sluicing later exposed quartz veins, which became the focus of TechGen's drilling two years ago.
Other encouraging exploration includes a 1983 Kennecott trench which unearthed a 160m long intersection grading 1.2 grams per tonne (g/t) gold and a higher-grade 5m section coming in at 18.0g/t gold.
Soil sampling by TechGen also unearthed a high-order gold anomaly spanning 900m by 250m, with grades exceeding 100 parts per billion (ppb) gold and peak assays reaching 10g/t.
TechGen followed up the geochemical results with a 17-hole drilling program for 2249m in 2022 and 2023 that revealed eye-catching results of 94m at 0.95g/t gold, with a 66m section grading 1.14g/t gold. The program also identified a 68m intercept grading 1g/t from surface, together with a 23m slice running at 2.02g/t.
Novo plans to undertake further mapping and more than 2000m of drilling in 2025 to further test the extent of mineralisation given all sections at John Bull remain open at depth and along strike.
Novo Resources executive co-chairman and acting chief executive officer Mike Spreadborough said: “Both projects are drill-ready, high-grade gold opportunities in excellent mining jurisdictions and most, importantly, meet the specific project criteria required by our standout geological team to identify standalone gold projects with >1m ounces development potential. We are looking forward to getting on the ground early in 2025 and commencing both exploration programs.”
The deal for John Bull has been structured to allow Novo the option to acquire up to 70 per cent of the project from TechGen in a staged process. After an initial payment of $300,000 in Novo shares for previous exploration expenses incurred, Novo must undertake 1500m of exploration drilling within 12 months.
If Novo wishes to continue for a second year, it will pay a further $200,000 in Novo shares and drill another 1500m in the second year.
At the end of year two, the company can elect to exercise the option to pick up 70 per cent of John Bull, leaving TechGen with 20 per cent and a minority holder with 10 per cent free carried until a final investment is made.
The deal for the adjoining Micks Bull tenement is slightly different and will allow Novo to take up to 80 per cent ownership of the grounds.
The Tibooburra gold project is positioned in northwestern NSW’s historic Albert Goldfields and encompasses six exploration licences spanning 630 square kilometres.
Key exploration indicators include more than 200 historic workings and 34km of mineralised trends especially at the advanced prospects of New Bendigo and Clone.
At New Bendigo, evidence of extensive old timer workings extend more than 2km.
Several drill programs, including one by vendor, Manhattan, in 2022 have tested more than 530m of strike, hitting multiple laminated quartz veins with extremely high grades.
Some of the best intercepts include 5m grading 20.86g/t gold as part of a bigger section of 30m grading 4.03g/t gold, from 11m depth, and 16m running 13.89g/t gold from surface in addition to a 3m slice running at an eye-popping 69.2g/t gold.
Other deeper hits of 8m at 40.5g/t gold from 70m, including a 3m section grading 105.34g/t gold, and 24m at 3.55g/t gold from 82m with a 4m slice grading 20.11g/t gold mean the prospect provides huge upside for high-grade development after the company pinpoints the geological controls.
Clone has delivered equally strong results with intersections including 7m at 7.23g/t gold from 81m, 6m grading 4.22g/t gold from 66m and 9m at 6.03 g/t gold starting at 16m depth.
Novo is gearing up for detailed mapping, geochemical sampling and 2000m of drilling to advance these targets.
To take majority ownership of Tibooburra, Novo and Manhattan have agreed to a joint venture agreement (JV) that loosely follows Novo’s agreement with TechGen for the John Bull project.
In the Tibooburra deal, Novo can earn 70 per cent of the project across a two-year period of payments and exploration spend, leaving Manhattan free carried until a positive feasibility is completed.
Novo will also reimburse Manhattan with 500,000 Novo shares to cover its previous expenses followed up with a $500,000 exploration spend in the first 12 months.
If Novo elects to continue into year two, it will have to pay Manhattan one million Novo shares at the market value together and commit to spend $1 million on exploration. At the successful conclusion of year two, Novo can then elect to take up a 70 per cent right to the project.
Novo is well-funded to focus on a strong domestic exploration push next year, following the recent sale of its partial investment in San Cristobal Mining for $11.5m.
It is already exploring 5500 square kilometres for gold in Western Australia’s Pilbara region, which is next door to De Grey’s 10 million ounce Hemi project and pushing along an extensive exploration plan at its 22 square kilometre Bellhopper gold project.
Novo seems to be doubling down on its bet that the rampant gold price - currently trading at US$2657 (A$4161) per ounce - is here to stay. And that means 2025 looks likely to be a year of high drama, and hopefully profits, for the aggressive explorer.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By James Pearson
