Novo Resources Corp (TSX:NVO, OTCQX:NSRPF, ASX:NVO, FRA:1NOR) earlier this week outlined plans for a 2,700-metre reverse circulation drilling program at the Tibooburra Gold Project in New South Wales, targeting extensions to high-grade mineralisation at Clone and a previously undrilled quartz-reef trend at Pioneer South.
Executive chairman Mike Spreadborough said the campaign would build on encouraging results from the company’s previous drilling at Clone. He highlighted intersections including 12 metres at 5.9 grams per tonne gold and four metres at 13.7 grams per tonne gold.
Spreadborough said the program was intended not only to expand Clone but also to improve the company’s understanding of the broader 22-kilometre mineralised system.
General manager of exploration Rohan Williams said the northern extension of Clone represented a compelling target because the mineralised system appeared to plunge shallowly north beneath a creek.
Williams said the company aimed to “replicate these high-grade intercepts that we received last year and track it down plunge.” He also referred to an intersection of 17 metres at 2.4 grams per tonne gold and said the mineralisation could potentially support open-pit extraction as well as further underground exploration.
At Pioneer South, the company is preparing to test a target that has not previously been drilled. Williams said narrow mineralisation had been identified at surface alongside high-grade rock-chip results, with the company hoping that drilling would intersect repeated en echelon structures at depth.
A discovery at Pioneer South would provide Novo Resources Corp (TSX:NVO, OTCQX:NSRPF, ASX:NVO) with an additional mineralised target within the wider project area, while successful step-out drilling at Clone could extend the known high-grade gold shoot.
The drilling program is also expected to satisfy the expenditure requirement for Novo Resources Corp (TSX:NVO, OTCQX:NSRPF, ASX:NVO) to earn a 70% interest in the project under its farm-in arrangement with Manhattan Gold Corporation Ltd and Awati Resources Pty Ltd. Spreadborough said completion of the earn-in would lead to the formation of a joint venture, with Novo Resources Corp becoming project manager.
Potential catalysts include the commencement of drilling, initial observations from the campaign, assay results from Clone and Pioneer South, completion of the 70% earn-in and the definition of follow-up work for 2027.
Beyond drilling, Spreadborough said the company’s geologists planned to undertake a major soil-sampling campaign across the 22-kilometre system. He said Novo Resources Corp was ultimately seeking to identify the source of the historically mined gold and assess the potential for a larger mineralised system.
Interview highlights
- Novo Resources Corp is preparing a 2,700-metre reverse circulation drilling program at the Tibooburra Gold Project in New South Wales.
- The campaign is expected to include approximately 1,700 metres at the Clone prospect and 1,000 metres at Pioneer South.
- At Clone, the company will test the northern and down-plunge extensions of previously identified high-grade gold mineralisation.
- Previous Clone results discussed in the interview included 12 metres at 5.9 grams per tonne gold, 17 metres at 2.4 grams per tonne gold and four metres at 13.7 grams per tonne gold.
- Rohan Williams said the mineralised system appeared to plunge shallowly north beneath a creek, providing a clear structural target for follow-up drilling.
- Pioneer South has not previously been drilled, despite surface rock-chip results of up to 19 grams per tonne gold.
- Drilling at Pioneer South will assess whether narrow surface mineralisation develops into repeated en echelon structures at depth.
- The program is expected to allow Novo Resources Corp to earn a 70% interest in the project under its farm-in arrangement.
- Once the interest is earned, a joint venture is expected to be formed and Novo Resources Corp will become project manager.
- The company plans additional work in 2027 after reviewing the drilling results.
- A major soil-sampling campaign is also planned across the broader 22-kilometre system.
- Novo Resources Corp is seeking to identify the source of the historically mined gold and determine whether the project hosts a larger mineralised system.
Proactive: Novo Resources Corp is preparing to launch a 2,700-metre reverse circulation drilling program at its Tibooburra Gold Project. Here to discuss the program are executive chairman Mike Spreadborough and general manager of exploration Rohan Williams. Gentlemen, good to see you. Mike, can you outline the key objectives of the program?
Mike Spreadborough: People might recall that we completed a drilling program last year that returned some very good high-grade results. That program was focused on Clone, where we drilled intersections including 12 metres at 5.9 grams per tonne gold and four metres at 13.7 grams per tonne gold.
Part of this program is about building on and growing Clone, but we are also focused on the entire 22-kilometre system and developing a bigger picture.
Following good rock-chip results of up to 19 grams per tonne gold last year, we will also complete more drilling at Pioneer. This is the next step in understanding the broader system, so it is an exciting program for us.
Proactive: Rohan, what makes the northern extension of the high-grade gold shoot at Clone such a compelling target?
Rohan Williams: As Mike mentioned, we have a couple of very good intersections at Clone, including 12 metres at 5.9 grams per tonne gold and 17 metres at 2.4 grams per tonne gold.
These could potentially be mined by open-pit methods and explored further underground. The system appears to plunge shallowly to the north before passing beneath a creek.
We are hoping to track the system north and replicate the results received from last year’s drilling program. Our objective is to reproduce those high-grade intercepts and follow the mineralisation down plunge.
Proactive: Let’s also turn to Pioneer South. It has never been drilled despite strong surface results. What are you hoping to discover there?
Rohan Williams: The mineralisation is quite narrow at surface, but we are hoping that, as we track the structure at depth, we will identify a number of en echelon, repeating structures.
There are certainly very high-grade rock-chip results at surface, and the target has never been drilled. We are now putting the drill bit into it and hope to delineate some encouraging intercepts.
Proactive: Mike, how close are you to completing the expenditure required to earn a 70% interest in the project?
Mike Spreadborough: That is a good question because this is a farm-in arrangement. This drilling program will allow Novo Resources Corp to achieve a 70% interest.
The joint venture will then be formed, and Novo Resources Corp will become the project manager. I think that demonstrates how interested we are in the project.
This program will allow us to form the joint venture, and we will move ahead with more work in 2027.
Proactive: Beyond this drilling campaign, what exploration work will Novo Resources Corp undertake to build its understanding of Tibooburra?
Mike Spreadborough: It becomes very hot in Tibooburra over the Christmas period, so we will take time to reflect on the drilling results.
In the meantime, our geologists will undertake a major soil-sampling campaign across the 22-kilometre system. Some of that work is already reflected in the company’s recent announcement, and we have identified some encouraging contours.
We want to build a strong understanding of the entire system. What we are really looking for is the source of the gold.
The area has a long history of mining, and we want to understand the source of the gold system. That will help us assess the potential for a larger system. We remain very excited about it.
Proactive: Mike, as always, there is plenty going on and plenty to look forward to. Thank you both for your time. We will be in touch as more results come through.
Mike Spreadborough: Thanks, Jonathan.