Novo Resources Corp (TSX:NVO, OTCQX:NSRPF, ASX:NVO) welcomes an ongoing commitment by De Grey Mining Ltd to aggressively explore the Egina Gold Project earn-in after the successful player in the Mallina Basin of Western Australia's Pilbara region reached the initial 15-month minimum spend commitment of A$7 million.
After completing more than 43,300 metres of aircore and reverse circulation (RC) drilling at the JV in addition to Novo’s previous 60,000 metres, De Grey has near-term plans for follow-up targeted RC and diamond drilling to gain a clearer understanding of Egina’s potential.
De Grey has the right to earn a 50% joint venture interest in the Egina tenements by spending an additional A$18 million through to June 30, 2027, at which time a joint venture will be formed.
The combined Egina Gold Project and De Grey’s tenure, including the nearby 12.7-million-ounce Hemi deposit, forms a strategically significant land position in the Mallina Basin covering approximately 2,500 square kilometres.
De Grey has executed an aggressive exploration strategy across Egina, particularly at the Becher Project, with drilling at Heckmair, Irvine, Lowe and Whillans prospects.
This work has returned results of up to 6 metres at 1.2 g/t gold at Heckmair, 4 metres at 2.1 g/t gold at Irvine and 8 metres at 4.7 g/t gold at Lowe.
Strong operational synergies for gold
“We are delighted that De Grey shares our enthusiasm for the Egina Gold Project,” Novo Resources executive co-chair and acting CEO Mike Spreadborough said.
“We’ve been exploring the Mallina Basin since 2017, attracted by its gold prospectivity.
“To be able to partner with a group like De Grey, with its nearby Hemi deposit, provides the best opportunity for us to drive value for our shareholders at Egina, through any potential new discoveries and future exploration success.
“Importantly, De Grey is just starting to explore at Egina, with several highly prospective areas yet to be systematically tested, providing multiple new targets to explore and build upon the platform set by De Grey over the past 12 months.
“Meanwhile, we remain focussed on progressing our prospects in the Pilbara and Victoria, as well as assessing project generation opportunities.”
Advancing toward a JV agreement
“The Egina Project is an important part of De Grey’s strategy to grow a large regional scale resource base around the planned Hemi processing plant,” De Grey general manager exploration Phil Tornatora said.
“The Egina tenements are approximately 1,000 square kilometres and significantly grows the land position De Grey has exposure to around Hemi.
“Egina contains major structures and geological units which extend from Hemi and is prospective for both large intrusion-hosted deposits like Hemi and orogenic gold deposits.
“Large prospective areas of the Egina Project have not been explored so we believe the area still has exciting potential.
“During the September quarter, De Grey satisfied its minimum expenditure commitment by spending A$7 million over a 15-month period.
“Our intention is to continue to progress exploration on the Egina tenements towards forming a 50:50 joint venture subject to ongoing assessment of exploration results on the project.”