New Style of Gold Mineralization Encountered At Malmsbury Project

VANCOUVER – Novo Resources Corp. reported additional assay results received from the current diamond drilling program on RL006587 at the Malmsbury Project, approximately 50 km SSW of the high-grade Fosterville mine in Victoria, Australia. Novo exercised its option over the Malmsbury Project to earn a 50% interest, and the right to earn an additional 10% interest by incurring A$5 million in exploration expenditure over a four-year period.

“The latest results from diamond drilling on the Malmsbury Project continue to look encouraging and will be complemented by the planned geophysics later in the year,” said, Kas De Luca, GM Exploration. “3D modeling and targeting by the joint venture later in the year will be a critical step in advancing the Malmsbury Project, and the intrusion related gold mineralization will form an important part of understanding the overall system.”

Approximately 2,525 m (8 holes, 1 in progress and 1 planned) of an expanded circa 2,800 m diamond drilling program have been completed through the end of May at the Malmsbury Project. At the time of writing, gold and multi-element assays from four of eight holes completed have been returned. Significant results from the first three of these holes (MD13, MD14 & MD16) were reported previously.

Drill hole MD17 was drilled to 380 m in a westerly direction to test the recently discovered Missing Link Monzogranite at depth, in addition to the Missing Link and Hanover West historic gold reefs. This hole aimed to determine the geometry and gold endowment of the intrusion and targeted the monzogranite for its potential as an IRGS, in addition for the potential for orogenic vein style mineralization.

MD17 successfully intersected the Missing Link Monzogranite between 204 m – 269 m down hole, in addition to a smaller and potentially parallel shallow sub-surface granite dyke interpreted in strongly oxidized material near the collar. Drilling confirms a steep (70 – 80°) east-dipping geometry for the intrusive that widens noticeably at depth. The intrusive is characterized by strong sericite alteration and disseminated sulphides throughout with regular intervals of planar white quartz-sulphide stockwork veining. A distinct 1 m-wide sulphide-shear-breccia within strongly quartz veined sandstone occurs within a meter of the upper granite contact.

Drill hole MD17 was sampled in two stages, with priority given to sampling across the monzogranite interval and contact zones. Gold assays recently returned from the priority sampling only are presented here. The remainder of gold assays from MD17 (second stage), in addition to very recently returned multi-element data are still in QAQC and review and will be reported once fully interrogated. The intersection was calculated using parameters that include a 0.1 g/t Au cut-off and no more than 5 m internal waste and are considered appropriate for reporting wider and typically more diffuse gold values associated with mineralized intrusive occurrences. The reported intersection is considered close to true width. Significant intercept table (gold only) from priority sampled portion of drill hole MD17. This significant intercept was generated using a 0.1 g/t Au cut-off grade and no more than 5 m internal waste.

Diamond drilling continues at Malmsbury with two additional priority diamond holes to be included in the current drilling program based on recent success, including: 1) a circa 80 m step-out hole north of MD17 to test the Missing Link Monzogranite in an area of significant Au-in-soil and rock chips; and 2) an additional hole on the Leven Star Reef to test a potential high-grade shoot identified in recently reported significant results from MD162.

The work program moving forward will involve a larger second phase of drilling to both build on current success and test remaining high-priority targets not drilled in the current round. This is scheduled for late 2022 or 2023 pending rig availability.

Planning is also advancing on an IP survey, scheduled for Q3, 2022, to define sulphide rich target zones and enhanced quartz veining within the granite (IRGS) target corridor, in addition to delineating disseminated sulphide haloes around high-priority gold reef targets. Further expansion of systematic soil geochemistry, mapping and rock chip sampling is also scheduled.