Novo ups gold production 22% in Q3, says it 'fell short of expectations' due to lower grades
(Kitco News) - Today, Novo Resources (TSX:NVO) announced that in Q3 2021, production at its Beatons Creek project,located in Nullagine, Western Australia, totalled 18,144 ounces of gold,representing a 22% increase over Q2 2021 production of 14,890 ounces of gold.
However, the company saidthat head grades were lower compared to forecast due to previous reliance onwide spaced grade control drilling which results in lower accuracy of themodelled high-nugget effects in the Beatons Creek oxide mineral resourcecombined with higher mining dilution associated with more complex mining areas.
In order to provide greatercertainty in grade forecasting for mine planning, the company said it continuesto progress its Beatons Creek grade control drilling program at a spacing of 10m x 10 m, which provides improved reconciliation between the resource modelgrade and the actual grade mined.
Importantly, Novo added thatits Q3 2021 revenue is C$43 million (A$45.8 million) from the sale of 18,753 ozAu at an average realized gold price of A$2,483, with quarter-end cash balanceof C$44.1 million.
Executive Co-Chairman MikeSpreadborough said, “The ramp up of operations since February has proceededwell, with both mining and processing achieving target rates. However, goldproduction fell short of expectations. We saw lower head grade than forecast asa result of lower accuracy in the grade control grade estimate. We have foundthat closer spaced drilling is providing more certainty for mine forecastingand we are continuing to progress the completion of this drilling.”
Novo operates its flagshipBeatons Creek gold project while exploring and developing its prospective landpackage covering approximately 13,250 square kilometres in the Pilbara regionof Western Australia.
By Vladimir BasovFor Kitco News
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