Novo Resources (TSX: NVO; US-OTC: NSRPF) has released a preliminary economic assessment for the company’s 100%-owned Beatons Creek gold project near the town of Nullagine in the Pilbara region of Western Australia, about 296 km southeast of Port Headland and 1,364 km northeast of Perth.
The early-stage study envisions an open-pit mine producing 100,000 oz. of gold annually over a six-year mine life at all-in sustaining costs of US$974 per ounce.
Quinton Hennigh, the company’s president, noted in a press release that there is potential to lengthen the mine life by growing the resource with step-out exploration, “given the expansive nature of gold-bearing conglomerates in the Nullagine region.” The company says it has identified numerous near-surface exploration targets on its 1,250 sq. km land package, and made a new gold discovery about 2 km southwest of the project in November called Skyfall.
The company is also looking to unlock the potential of its other assets across the East Pilbara region. These include the wholly-owned Marble Bar project, about 150 km southeast of Port Headland, and the Mt. Elsie project, 75 km northeast of Nullagine.
“The robust anticipated cash generation reported by the PEA should support Novo’s exploration activities across its vast holdings in the Pilbara, with further potential to grow production organically,” Hennigh stated in the news release.
Elsewhere in western Australia, Novo owns an 80% interest in Comet Well, a new gold discovery about 45 km south of Karratha and the 100%-owned Egina project, 120 km east of Comet Well.
At press time in Toronto, Novo was trading at $2.96 per share within a 52-week trading range of $1.63 and $4.16. The company has around 230 million common shares outstanding for a $681.8-million market capitalization.