Novo Resources (TSX: NVO) has officially returned to the status of gold explorer versus gold producer this morning with the news that its Beaton’s Creek project is officially moving to a care and maintenance status, while the company also halted work on the feasibility study for the projected.
The decision to move to care and maintenance follows an updated mineral resource estimate released this morning for the Beatons Creek project. The estimate results in 234,000 ounces of indicated gold at 2.4 g/t, along with 42,000 ounces of inferred gold at 1.6 g/t, all within an open pit model. The revised estimate is a substantial decline from the 457,000 indicated ounces at 2.1 g/t gold and 294,000 ounces at 2.7 g/t gold that were estimated within an open pit model as part of the firms 2019 estimate, while most notably the company removed the estimate entirely from the underground mining model, due to the revised results coming in at too low of a grade.
The decline in numbers is said to be a result of both mining depletion as well as revised mineralization wireframes that were constructed after continued infill drilling.
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The results from the revised estimate were bad enough that the company has halted further work on a feasibility study that was originally due to be released in the fourth quarter, which is also partially being blamed on the current cost environment and other economic factors. The firm also highlighted the delays with receiving approval to mine the Fresh project at Beatons Creek as part of the reason for the halt.
A revised resource estimate with data from drilling completed after May 30, 2022 is expected to be released in the first half of 2023.
Novo Resources last traded at $0.40 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
