Novo Resources (TSX-V) announced on Tuesday it has discovered a broad gold-bearing swale in the northwestern part of its Egina mining lease in Australia’s Pilbara region.
The discovery is situated a few hundred metres west of the swale that was the subject of extensive test work by the company in 2019.
Earlier this month, Novo recommenced its exploration program at Egina and identified another gold-bearing channel in an area southwest of the Paradise prospect.
The recent discovery is located immediately north of a series of low hills that are capped in places by Fortescue Group gold-bearing conglomerates
The recent discovery is located immediately north of a series of low hills that are capped in places by Fortescue Group gold-bearing conglomerates.
Novo believes these conglomerates were once far more extensive in this area and that as they eroded away, gold was reworked into the modern gravel terrace.
“We are starting to see a pattern of gravel gold distribution that appears robust around Egina. Recently discovered broad gold-bearing swales discovered at Paradise likely tie back to areas further south,” Quinton Hennigh, Novo’s president said in a media release.
“This implies we have a network of swales nearly 10 km wide and 17 km from south to north to further explore around Egina, a small part of our large land holdings across the expansive terrace,” Hennigh added.
On Tuesday afternoon, Novo’s stock was down 0.3% on the TSXV. The company has a C$635 million market capitalization.