Novo Resources (TSX: NVO) reported on Thursday that its Beatons Creek conglomerate gold project, also known as the Nullagine gold project in Western Australia, has had another record month of growth with production of 8,589 oz in July, a 46% increase over June.
A total of 7,899 oz gold were sold in July, generating revenue of C$17.8 million, a 50% jump over the prior month.
Mill throughput continued to increase at Nullagine on a month-on-month basis. As anticipated, the processing plant’s annualized rate is increasing towards 1.8 mtpa.
A total of 148 kt of gold-bearing conglomerate material was processed in July. Recovery rates are also stabilizing around 95%. July’s processing head grade was 1.94 g/t Au.
Exploration works at the Nullagine project also accelerated during the past two months, with RC drilling completed on several conglomerate (Beatons Extended and Skyfall) and orogenic basement (Margies, Cutlass and AU81 north) targets. These are all located within a 50 km radius of the company’s Golden Eagle processing facility.
Additional high-priority targets more recently delineated within the Nullagine project area also scheduled for drill testing in the latter half of 2021.
The Nullagine gold project, named after the town in Western Australia near which it is located, is one of Novo’s Pilbara paleoplacer gold projects. The company is currently undertaking systematic exploration for gold-bearing reefs across this approximately 160 sqkm property for resource definition.
Novo Resources’ shares surged 8.4% by noon ET following the company’s latest operations update. The Australia-focused miner has a market capitalization of C$535.9 million.